Oakwood keen on mortgage exit

Mortgage lenders are now so desperate to escape the ailing UK property market they are effectively paying customers to take their business elsewhere.

Oakwood global Finance, which is majority-owned by banking giant Credit Suisse and specialises in buying up home loans from other lenders, is offering a 15% discount to selected borrowers if they pay off their loans early, either through remortgaging or by using their own savings.

In a bid to remove the loans from the company's books and reduce its exposure to the housing market as property prices plunge, Oakwood is also waiving its usual repayment charge and exit fee for those taking up the offer.

The firm is following in the footsteps of Wolverhampton-based subprime lender Edeus, which last month said some of its customers could receive an 8% discount if they redeemed their loans in full.