Investec pays off thousands of home loans in Gauteng
- Investec has written off the mortgage debt of 3,600 households in 15 Gauteng townships.
- The bank received the home loans as security for a lending deal.
- Instead of selling the mortgages, it decided to cancel them instead.
- For more stories, go to Business Insider SA.
After receiving 3,600 mortgages as part of a loan deal, Investec has decided to settle the homeowners' debts.
Title deeds for these properties in fifteen Gauteng townships will be handed over by the first quarter of next year.
Investec has cancelled the mortgage bonds registered over the properties. The title deeds of the properties are being returned to the registered owners and the underlying debt is also being waived by Investec.
Investec received the mortgage bonds as security for a lending deal.
“When we (…) received the bonds we decided that instead of trying to sell them, or collect on them - the right thing to do was to give the homes back to the people," Whelan said.
The majority of people receiving the title deeds are pensioners who've been paying off their bonds for decades, Investec said.
“These recipients now have a home of their own and an asset they can use in other life-changing transactions, like starting a business or educating their children,” says Richard Wainwright, Investec CEO.
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