Mortgage advise

Mr Bump

Need some advise, does anyone know how the banks will react to a deal on a once off payment to clear your mortgage??
I have a big mortgage and currently am not working, there for cannot pay the mortgage, I have a member of the family who is willing to give me 120k to do a deal with the bank and clear it down, I have heard that the banks are willing to do deals like this, is that true??,

BuffyBot

What's the outstanding balance on the mortgage?

At the end if the day, don't expect any fabulous deals (i.e. pay off a 500k mortgage with 125k). You might strike a deal, but I doubt it would be near as advantageous as any "deal" you might imagine.

Geri Male

offer to make a lump sum reduction and re-negotiate the term. Although if you're on a tracker that might not be a good idea.

Liam D Ferguson

Rumours of banks doing deals to write off parts of tracker loans in return for lump sums have been greatly exaggerated in my opinion. I'm aware that Bank of Scotland are doing so, and Permanent TSB had a scheme a while back where they would add 10% to the value of an overpayment, but that's it.

As far as I know all the other banks are only writing down distressed loans, i.e. where there the loan is in arrears and there are few reasonable prospects of it being repaid. Where the customer is making the normal repayments, most banks will be unwilling to write off part of the loan.

That said, things are changing all the time and my evidence is entirely anecdotal so by all means approach your bank and give it a go - worst that can happen is that they say no.