At the end of June, edeus announced it would give selected borrowers attractive incentives to redeem their existing mortgage early.
The borrowers were encouraged to contact the broker that originally introduced the loan to edeus to source a suitable deal with another lender.
With the securitisation markets closed and loan book sales now the preserve of vulture investment firms buying up specialist lending books at fire sale prices, edeus’ says its Golden Goodbye is the most cost effective way to reduce its lending balance.
It had a 40% response rate to its preliminary round of early redemption offers and that the programme is to be extended to more specially selected borrowers.
Customer benefits include, up to 10% cash allowance paid directly into your mortgage account on the date of closure and no early repayment charges to pay if applicable to your loan.
There are also no mortgage exit administration fees to pay – edeus’ fees are currently £160 in total made up of £120 redemption administration fee plus £40 deeds release fee.
Alan Cleary, managing director of edeus says: “”It’s difficult to trade with the securitisation markets at the moment – so we’re trading with our borrowers instead.”
“The early redemption mortgage programme is proving to be a success with borrowers and brokers alike.
“It’s an innovative form of balance sheet management offering a straightforward solution to the problem of the misfiring securitisation markets.”