LLOYDS BANKING GROUP ANNOUNCES THE SALE OF A PORTFOLIO OF IRISH RETAIL MORTGAGES
Lloyds Banking Group plc (the Group) announces today that it has agreed the sale of a portfolio of non-performing Irish retail mortgages (the Portfolio) to Tanager Limited, an entity affiliated with Apollo Global Management, LLC (NYSE:APO), for a cash consideration of £257 million. The transaction is part of the Group's continued non-core asset reduction programme.
The gross assets subject to the transaction are £610 million. The Portfolio generated losses of £33 million in the year to 31 December 2012. The sale proceeds will be used for general corporate purposes and the transaction, although capital accretive, is not expected to have a material impact on the Group, due to existing provisions taken against these assets.
The transaction is expected to complete in H1 2014.
I know consumers lose protction but this could actually be good news for those in arrears. Apollo only care about one thing i.e. Return on investment. They have no interest in becoming property owners unless they have to. They bought a portfolio of mortgages in arrears for 42% of the nominal value. This gives them lots of room to negotiate with borrowers on interest rates and principal which benefits the homeowner and still generates a profit for Apollo. Someone like Apollo will deal with the arrears problem in Irish mortgages a lot quicker than the banks will. That can only be good news.
it has agreed the sale of a portfolio of non-performing Irish retail mortgages
I presume a non-performing mortgage is a mortgage of at least 90 days in arrears.
I doubt if trackers which are not in arrears are considered non-performing.
So basically I would need to go into arrears to get a discount on my mortgages?
Why do you think you would get a deal or a discount? It doesn't look like any of the BoSI customers got a deal - they have had their loans sold to a vulture company which is unregulated and can do what they like within the terms of the loans - so unlikely to be a maximum variable rate for example.... for those of us who are not in arrears it can be a bit hard to take as we are not getting any deals.
TRS30;
Would anyone buy an areears Mortgage book @ 42% of its supposed value, since house values are down more than that in the recession. Therefore they have no equity on already non-performing mortgages.Unlees it is 42% of an alredy written down value?
Am I missing something?
The gross assets subject to the transaction are £610 million.
I suppose that there is a chance. But again, they would be better off doing deals with the borrowers than selling them at distressed prices.
We have never been strategic defaulters and want to deal with all our debts in an upfront, honourable manner.
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