Sub Prime mortgage lender Edeus look to be a bit desperate to off load some of the mortgages on it’s books, having offered a discount to customers for early re payment.
Edeus have so far tested the water with 400 of it’s customers and interest from eligible customers is said to be 20% at this stage. The lender is offering a discount of 8% for repayment of the loan or moving to another lender. They are also waiving early redemption charges and exit fees.
Edeus was formed in 2006 to take advantage of the big profits to be made in the sub prime market and in it’s first year shifted £1.4bn of mortgages. The business was hit by the credit crunch at the end of last year.
With potential buyers now demanding big discounts, Edeus considers that the offer to customers is a better option than selling the loans to a financial institution.
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