Hedge fund offers mortgage borrowers golden goodbyes
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City hedge fund Toscafund, which last year acquired a number of mortgage books, is offering to write off up to 20 per cent of mortgage holders’ borrowings if they remortgage with a new lender.
The hedge fund uses a mortgage servicing company to administer its loans and borrowers who wish to remortgage away are being offered the opportunity to write off a large proportion of their debt if they refinance elsewhere.
Chief investment officer of the Tosca Mod fund Charles Schrager says that for some borrowers it can be as much as 20 per cent, but in most cases it is much less than this.
The firm would not reveal which mortgage lenders’ books it has bought and which borrowers would therefore be offered the deal, nor which third party servicng firm it is using to administer the loan books.
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Readers' comments (1)
Joe Strummer | 6 May 2010 10:31 am
Looks like the smart money wants to get out of residential property. I wonder why...
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