5k charged for Right to Consolidate?

by Readers Question

9:33 AM, 3rd April 2019
About 11 months ago

5k charged for Right to Consolidate?

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5k charged for Right to Consolidate?

Hi all, I am in process of selling a BTL with Mortgage Express. When my solicitor asked for a redemption statement they wrote back saying below:

“We have the right to consolidate and take all monies. However, on this occasion we will just charge £5k which will be used across overall portfolio.”

I am now thinking of not selling. My question is has anyone else had this issue? My solicitor is about to write to say we will not sell it then.

Once they get this letter will they drop the £5k charge as they will lose the option to redeem this mortgage in full?

Many thanks



Colin McNulty

12:36 PM, 9th April 2019
About 11 months ago

Yes it's true that MX have acquired that reputation, however I can only comment on the information to hand. They appear to be being reasonable here as they are not enforcing their Right to Consolidate in its entirety, and there's been no mention of any misdemeanours.

Ian Narbeth

13:46 PM, 9th April 2019
About 11 months ago

Reply to the comment left by Colin McNulty at 09/04/2019 - 11:39
Colin, we must agree to disagree on this one. With other lenders keen to maintain an ongoing relationship, I might do as you propose. However, as my earlier comments pointed out Rav will draw attention to himself. Suppose he asks for £2000 and they say, no it's £5K or full redemption? If Rav then does not now sell, next time MX may dig their heels in. I think my plan is less risky.

Colin McNulty

14:15 PM, 9th April 2019
About 11 months ago

Fair enough Ian, I'll agree your plan is certainly less risky from the perspective of MX. But risk is a value judgement and we don't have all the information necessary to make an informed opinion as to the balance of risk. Specifically we don't understand Rav's risk profile, nor know what he needs that money for that he's prepared to not sell that property at the thought of going without it, presumably to sell a different one instead?

You could argue it would be even less risky to not sell any of the MX properties at all, until he can sell them all simultaneously. But again, we don't have the necessary information to make such a suggestion.

It's always tricky giving opinions on what someone should do based on short posts on internet forums, we just don't have the full facts to hand, something only Rav's mortgage broker will have.

Besides everything in life is a risk, as the 70,000 people who get hospitalised each year for falling out of bed would no doubt attest to! 😀

rav singh

16:00 PM, 9th April 2019
About 11 months ago

Hi all. Yes I think I’m just going to pay the £5k and let it be. The only lender I’ve heard bad things about is MX and I’ve always been wary of this.

Kay Landlord

7:46 AM, 27th April 2019
About 10 months ago

Talk to them. MX can be very reasonable if you just ask them. I hear far less horror stories now and my own experiences have been fair over the last few years. They understand fully now how we are bashed up elsewhere. 5k sounds like a very fair offer.

rav singh

16:05 PM, 11th May 2019
About 10 months ago

Hi all. Just to update completed on house. MX dropped the 5k charge but I did NOT ask them too as I did not communicate with them. My solicitor was completing and there was no 5k on redemption from MX

So my solicitor contacted them to re confirm. They advised they check the LTV over whole portfolio daily. At time of originally asking for redemption it’s was at 86% but on day on arranging exchange it was 83%. There marker is 85%

Just wanted to inform you all as May help others out there. Thanks for all comments.

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