BBC
A former sub-prime mortgage lender is offering an 8% discount to its borrowers if they redeem their loans. Edeus, which started up in 2006, is making the cash-back offer to 400 customers and may extend it to thousands more if it proves popular. The lender wants to get the loans off its books but can no longer find professional investors willing to buy. A spokesman admitted the idea sounded “bizarre” but it was cheaper than selling the loans in any other fashion. “The market for selling on the mortgages is almost dead, and they can be sold only at a very distressed price,” said Ray Boulger, from mortgage brokers John Charcol. More
Tags: Edeus, sub-prime mortgage