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TylerDurden

What Do You Make Of This

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Chatting to a guy in work today about his sons house. I've done a fair amount of work in the property since he bought it about 2 years ago at 150k.

He bought it with a large amount of help from his dad it seems, but has just split from his wife and she has moved out, he's struggling to keep on top of payments as his mortgage was £700+ per month. Then it came down from the fix rate to £450 per month. His dad asked if i wanted to rent it. i said i'd think about it. he obviously went and spoke to his lender about a buy to let mortgage last night. as this morning i said i wasnt interested, and he said, its ok, were going to sell it.

i asked why they were thinking of selling and he told me the mortgage company said that if he sells it now and pays off the rest of the mortgage they will knock 17 grand of what he owes. as they are wanting to get rid of some of there mortgages alltogether.

So he said if he gets 150k for it, he will make 27k, i presume there was a 10k deposit somewhere down the line.

Anyway, the house has been valued at 160k and is going on the market.

i just wondered if this was normal for lenders to act like this? im sure most people have to pay a fee to clear the mortgage?

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Some of the non mainstream lenders have been doing this, they are now under pressure to tidy up their balance sheets. Sometimes it seems like the bailouts never stop for the people who have stretched themselves too far...

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I was SO fed up to pay off my mortgage with NR (moved house) within the penalty period just AFTER they'd been nationalised. Having to pay the penalty was a real downer.

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During the last recession a mate of mine handed back the keys to his house which was then sold for less than his mortgage. After a couple of years of paying back the difference on a monthly basis, the BS wrote off the debt, so they do have discretion in these matters.

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i asked why they were thinking of selling and he told me the mortgage company said that if he sells it now and pays off the rest of the mortgage they will knock 17 grand of what he owes. as they are wanting to get rid of some of there mortgages alltogether.

Which mortgage company?

Doubtless one of the State owned ones, so as noted already, effectively a taxpayer funded handout to your friends son. :huh:

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Which mortgage company?

Doubtless one of the State owned ones, so as noted already, effectively a taxpayer funded handout to your friends son. :huh:

maybe so, but it does mean that in this case the seller can effectively reduce the sale price by 17k over what he would have wanted in order to get the sale. This will just accelerate all downward pressure in the neighbouring area so good for all of us!

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