Will Pepper give a discount for early settlement?

[Jonny Noels]

Hi,
Hoping for some advice. We have had our mortgage 285k 18 years, and through some arrears etc we owe 285k plus 20k arrears. If we agreed to sell, do you think they would be open to a settlement?

My Hope would be that they would settle for eg 250k payment, and we sell the house for 350k giving us 100k to start over. Do you think the bank would insist on taking the full outstanding amount if we sold the house for more then we owe giving us a chance to start over or am I being naive?

 

[ClubMan]

We have had our mortgage 285k 18 years, and through some arrears etc we owe 285k plus 20k arrears.

Are you saying that, over 18 years, not only has your outstanding balance not decreased, but it has actually increased from €285k to €305k?

My Hope would be that they would settle for eg 250k payment, and we sell the house for 350k giving us 100k to start over.

Why do you think that the lender would settle a debt of €305k for €250k (i.e. a €55k or write down) if you have €350k in hand?

How exactly are you going to start over with such a damaged credit rating? I can't see any other lender offering you a mortgage until you repair your finances and credit rating.

 

[mustang01]

Not a Hope. I went down that route a few years ago on a tracker with near zero interest rates when it would’ve paid them to accept early discharge with perfect credit history, but they didn’t want to know.

 

[Jonny Noels]

Are you saying that, over 18 years, not only has your outstanding balance not decreased, but it has actually increased from €285k to €305k?

Why do you think that the lender would settle a debt of €305k for €250k (i.e. a €55k or write down) if you have €350k in hand?

How exactly are you going to start over with such a damaged credit rating? I can't see any other lender offering you a mortgage until you repair your finances and credit rating.

Hi Club Man, thank you for reply. Yes that's correct, it doesn't make sense to us either. I'm going to ask a financial advisor to investigate. My thinking was that they might consider. I was thinking of moving abroad.