Halifax Mortgages being sold off

boogerballs

What does this mean for Halifax customers - can we realistically expect some sort of write down


http://www.independent.ie/business/personal-finance/property-mortgages/fresh-hope-of-deal-for-those-struggling-on-100pc-mortgages-3302196.html

""U]Bank[/U of Scotland (Ireland) is attempting to sell its mortgage book here, in a move that will mean its 80,000 mortgage holders are more likely to get a write-off deal on their debts.""

Monty Burnz

boogerballs wrote: »

What does this mean for Halifax customers - can we realistically expect some sort of write down


http://www.independent.ie/business/personal-finance/property-mortgages/fresh-hope-of-deal-for-those-struggling-on-100pc-mortgages-3302196.html

""U]Bank[/U of Scotland (Ireland) is attempting to sell its mortgage book here, in a move that will mean its 80,000 mortgage holders are more likely to get a write-off deal on their debts.""

Presumably you could only get a write-down from anyone if you can show that you can't make the payments. Halifax are also unlikely to sell the mortgage book for much less than they could get if they run down the mortgage book themselves.

There may be some more wiggle-room, but I wouldn't expect any sort of write-down bonanza by any means.

Marcusm

boogerballs wrote: »

What does this mean for Halifax customers - can we realistically expect some sort of write down


http://www.independent.ie/business/personal-finance/property-mortgages/fresh-hope-of-deal-for-those-struggling-on-100pc-mortgages-3302196.html

""U]Bank[/U of Scotland (Ireland) is attempting to sell its mortgage book here, in a move that will mean its 80,000 mortgage holders are more likely to get a write-off deal on their debts.""

Journalists rarely have any insight into subtlety. Those who are no hope/no light at the end of the tunnel cases will be cleared off fairly quickly to allow management time to focus on maximising recoveries from those who have some prospects of greater recoveries, meaning those generally younger with prospects of skilled or professional employment in an improving economy. For those people, the dark pit ay be worse than under BOSI/Halifax. Any new purchaser is likely to have no other regulated business (meaning limited scope to get them to sign up to the sorts of deferral plans the other banks need to accede to) and less of a concern that hardball tactics would lead to reputational or wider business issues. As the management is undertaken by Certus, it is entirely possible that a credit "vulture" fund with a positive outlook on Ireland's relative future may buy in. Lloyds need out and to focus on its core business, expect the price to be cheap.

boogerballs

Lets wait and see so...

boogerballs

Marcusm wrote: »

Journalists rarely have any insight into subtlety. Those who are no hope/no light at the end of the tunnel cases will be cleared off fairly quickly to allow management time to focus on maximising recoveries from those who have some prospects of greater recoveries, meaning those generally younger with prospects of skilled or professional employment in an improving economy. For those people, the dark pit ay be worse than under BOSI/Halifax. Any new purchaser is likely to have no other regulated business (meaning limited scope to get them to sign up to the sorts of deferral plans the other banks need to accede to) and less of a concern that hardball tactics would lead to reputational or wider business issues. As the management is undertaken by Certus, it is entirely possible that a credit "vulture" fund with a positive outlook on Ireland's relative future may buy in. Lloyds need out and to focus on its core business, expect the price to be cheap.

Surely if the mortgage book was bought for 1/10 of it's original value then the mortgage itself could be renegotiated with the new bank? ?

Victor

boogerballs wrote: »

Surely if the mortgage book was bought for 1/10 of it's original value then the mortgage itself could be renegotiated with the new bank? ?

Sure, but what about 80%, 90% or 110%?

There is no guarantee as to the buyer's approach. Changes may happen, but they can't be relied on yet.

Monty Burnz

boogerballs wrote: »

Surely if the mortgage book was bought for 1/10 of it's original value then the mortgage itself could be renegotiated with the new bank? ?

Why would the new owner not maximise the profit from their new purchase by squeezing as much money as possible from each customer?

boogerballs

Monty Burnz wrote: »

Why would the new owner not maximise the profit from their new purchase by squeezing as much money as possible from each customer?

I understand that but if it was as simple as that the surely Halifax wouldnt have sold.

If the new owner is realistic about the situation they may say ok so your house is now worth 50% of what you paid - we've just bought your mortgage for 10% of the original price - lets work out a new value that suits both parties. That way they are able to value what they will get over the 30+ years.

Am I being a bit naive here??

Henry Ford III

boogerballs wrote: »

I understand that but if it was as simple as that the surely Halifax wouldnt have sold.

If the new owner is realistic about the situation they may say ok so your house is now worth 50% of what you paid - we've just bought your mortgage for 10% of the original price - lets work out a new value that suits both parties. That way they are able to value what they will get over the 30+ years.

Am I being a bit naive here??

I think you are unfortunately.

Halifax want out of the market, and that's why they are selling the loan book.

The new owners are there to maximise profits, so will have tried to minimise the purchase price, and maximise the return.

In those circumstances they're unlikely to be offering any discounts or write offs.