Hi,
You can often get the good rates with the bigger lenders...Have a chat with a good Broker, or go visit half a dozen banks and see what they can do.
If a company goes broke, they sell their assets to recoup what they can. In this case they will sell your/their house to whoever wants it.
JB
Actually, bradje, that comment that the lender will sell the borrower's house is not quite right.
In fact, it's a long way from right.
There have been many takeovers in the past - the Bank of Adelaide, for example, was taken over by the Bank of Bendigo quite recently.
Does that mean that all borrowers with the Bank of Adelaide stand to lose their houses?
No, of course it doesn't.
When the State of Victoria sold the remnants of the State Savings Bank of Victoria to the Commonwealth Bank, did the Commonwealth Bank sell up the SSB's mortgagors? No, of course they didn't.
What does happen, keroppi_gims, is that the mortgages are assigned to the new mortgagee under the same terms and conditions as the original mortgages. That's all that happens.
There have been many bank and non-bank mergers since the beginning of the lending system - lending money is referred to in the Bible, so humans have been lending each other money for a few years now and there are well established patterns of what happens when. The debt is simply transferred to the new entity and life goes on.
Simple, really.
Cheers
Kristine
PS: To the best of my knowledge, Sapphire is owned by the Bank of Bendigo, just as Origin is owned by the ANZ, Homeside by NAB, Colonial by CBA, RAMS by Westpac etc The lending market is going through a cyclic shrinkage, it will be interest to watch for the new generation of lenders emerge as it's about fifteen years since the last batch.