Homeowners Getting Massive Discounts On Their Mortgages. Too Good To Be True?

Written 3 years ago by Rebecca Donnelly

Does this sound too good to be true?

Will Faulkner on Midlands Today speaks about an interesting development if you’re on a tracker mortgage.  People are always told to hold onto their tracker mortgage since rates are half of 1% mirroring the ECB rate.  This is considerably less than a variable loan.

Tanager, a huge US private equity fund have been discussed in the papers today.  They are known to have bought out loans from Bank of Scotland.  Tanager gives you massive discounts of up to 40% on the outstanding debt if you buy out of your tracker mortgage.

One homeowner had a €300,000 mortgage and was given a write off of €120,000.  These homeowners are now on a variable rate so they’re paying more interest.  They are paying lower payments so the debt outstanding is less.

Colm Arthur, Personal Insolvency Practitioner with Midlands Insolvency Solutions spoke in detail with Will Faulker about these kinds of deals.

Arthur said for most couples struggling it is “highly impossible to get their mortgages refinanced.”  They will almost always need a friend or relative to help them out with their financing.

Will wondered if many other companies will follow in the steps of Tanager.  Colm explained that he sees nothing new in this as other companies are doing similar arrangements, that vulture funds only have their own little schemes.

Listen to Colm Arthur speak further with Will Faulker about mortgages and vulture funds: