I’ve done a deal with Mortgage Express

by Readers Question

10 months ago

I’ve done a deal with Mortgage Express

Make Text Bigger
I’ve done a deal with Mortgage Express

I’ve read many bad reports about the tactics of Mortgage Express to call in loans so when the Divorce Courts ruled that two properties mortgaged to them had to be transferred into my name only and that my husbands name had to be removed from the mortgages I was naturally concerned. The mortgage rates are unbeatable in the current market so refinancing would incur both fees and higher interest rates.

I also have other mortgages with Mortgage Express so I was worried they’d tell me I needed to refinance the two and then use their “right to consolidate” to call in the others.

Nevertheless, I had to do something so I decided to bite the bullet and write to them to explain my predicament. My letter pointed out that all LTV’s are better than when the mortgages were first taken out and I provided evidence of that. I also pointed out that none of the mortgages had ever been in arrears and that all T&C’s have always been adgered to.

To my surprise they wrote back to me to ask me what’s in it for them, and to say they would consider my proposals if they considered them to be reasonable.

My proposal was to reduce the mortgage term from 10 years to five (still interest only) and to repay an extra £50 a month.

They rejected that offered and countered with five year interest only plus an overpayment of £100 a month.

I’ve asked my solicitor to consider their offer to make sure i’m not missing any dirty tricks but everything appears to be above board.

Has anybody else had any similar experiences and is there anything I should be wary of?

Thanks

Jane



Comments

NW Landlord

10 months ago

Any deals with mortgage express shoould be kept private would be my advice

Robert Rivers

10 months ago

Look after yourself, why don't you?, thought this was a forum to assist one another!!!

NW Landlord

10 months ago

I was doing because if you declare deals with Mx it could jeopardise the deal you have made with them as they deal on a case by case basis

M.E. have done deals under confidentiality agreements. They keep selling off bits of their loan book, but neither of our two mortgages it would seem. One is toxic and I would love to do a deal. The other is fine but we can not touch either but need to restructure because of section 24. I am between a rock and a hard place.
Anyone know what UKAR are really up to?

NW Landlord

10 months ago

When u say restructure do u mean incorporate using bic ?

probably not. More likely sell some and do beneficial interest transfers.

Glenn Ackroyd

10 months ago

I'm a portfolio landlord and I've spoken to MX recently.

They told me that if your entire portfolio doesn't have any properties that are over 85% LTV, based upon their internal Halifax HPI indexing, then the Right to Consolidate will not be invoked.

This is NOT the average portfolio LTV - so your portfolio could be under 85%, but if you have underperforming properties, they'll still invoke the Right to Consolidate to pay down mortgages on the high LTV properties.

I requested a schedule of my portfolio with the properties, mortgage balance, their current Halifax HPI value and the LTV ratio and they sent it out the next day.

The Halifax HPI values are quite optimistic in my view, which presents my portfolio in a better light than I thought MX would, which was reassuring.

I'd recommend any MX portfolio landlord to call 0330 159 1928 to get their figures.

Hi Glenn that is interesting but I am still wary. Have you shared info with them about your properties mortgaged elsewhere or are you referring purely to MX loans?

Ken Smith

7 months ago

Interesting post and am particularly interested in Glenn Ackroyd's contribution, as it applies to me in a similar way.

I have 13 mortgages with MX and 19 in total - after selling 12 off recently of my 31 houses over 5 years - in a way to minimise tax. All is going well. I have simply ignored my MX stock for possible sales as I hear so many shocking things about them. In a way they have done me a favour as I have been able to focus on the 18 non MX ones for sell off.

The MX ones are very profitable and all is fine with tenants in them etc. I am raising rents too. I have a very healthy cash pile owing to low rates for 10 years and have a lot of equity in my non MX ones.

However, I do feel it would be good to be able to at least consider selling the MX ones if/when they become empty. This is why Glenn's post interested me. I reckon, based on my local intelligence f my area of operation, that I have at least 75% equity across the board and none less than 85%. So based on Glenn's experience I should get the same time of answers from UKAR - or am I missing something?
I too, was vaguely aware that MX used the Halifax index too, and that this particular index has always been quite generous - or inaccurate - however you want to phrase it!

However, the use of this index seems to have benefitted Glenn - based on his comments.

Has anyone else had dealing s with UKAR like this? Would they care to share it?

It would be great if Glenn could respond too please.

Finally, has anyone been advised yet by UKAR if their mortgages have been transferred to either Prudential or Blackstone? The deal became public in March 2017 - yet I have heard nothing from anyone yet.

Thanks for reading, and hopefully contributing back.

Mark Alexander

7 months ago

Reply to the comment left by Ken Smith at 21/01/2018 - 15:28
Hi Ken

I completed the sale of a property mortgages to MX last week. Loan was just under 85% of pp and most of my others Mortgages to MX are at around 75% as an average.

They did not mention consolidation clauses, which was a very pleasant surprise.

It seems to me they’re softening up a bit, which makes sense because their previous aggressive strategy made people wary of even considering the sale of any properties Mortgages to MX, which is the exact opposite of what UKAR want.

1 2 3

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Property Investor Seminar - Norwich

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More