0:02 AM, 8th February 2024, About 2 years ago 3
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Hello, I have 4 BTL interest-only mortgages originally with Mortgage Express, later taken over by Siberite. No missed payments/arrears, and the LTVs are well within the original criteria.
P&L is still OK despite the rate rises, I’m looking at remortgaging 1 – 3 of the properties to pull out cash to refurbish the others.
There is a term in the original Mortgage Express conditions giving the right to consolidate i.e. if I want to pay off one of the mortgages they have the right to force me to pay off all of them. Research from old posts suggests they might instead take the equity raised from the remortgage to reduce the other mortgages.
Does anyone have more recent experience with a similar situation? i.e. whether they are likely to do this. I will ask them of course but would be interesting to hear the experiences of others.
Thanks,
Lee
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Member Since June 2013 - Comments: 372 - Articles: 61
11:06 AM, 8th February 2024, About 2 years ago
Hello Lee
I am a mortgage broker and have arranged many part portfolio remortgages of MX, Rosinca, Siberite, Topaz etc accounts, and for every case we have never experienced the lender asking for any consolidation, crystallisation or equity retention.
Maybe it’s just the way we package it? ?
We would be happy to offer our help for you as well.
Mark Alexander - Founder of Property118
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Member Since January 2011 - Comments: 12105 - Articles: 1318
13:30 PM, 8th February 2024, About 2 years ago
Hi Lee
The consolidation clause you have referred to caused several landlords problems during the credit crunch. The issues occurred when the LTV across all properties they have loaned against exceeded the percentage LTV they had initially agreed. Likewise for the rental cover.
However, I have recently sold several properties that were originally mortgaged through MX and they have not imposed their rights of consolidation on the basis that my LTV’s and interest covenants across the portfolio were below the levels they had first agreed.
From what I have read about your situation it seems to me that you are in a similar position to that I was in and on that basis, I wouldn’t anticipate you having any problems associated with their consolidation clauses.
There are no guarantees of course but I wish you the best of luck and strongly expect that you will be fine.
JB
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Member Since May 2017 - Comments: 722
15:01 PM, 8th February 2024, About 2 years ago
I have paid off around half of my dozen or so Rosinca mortgages (one at a time) and the question of consolidation hasn’t arisen. The only upset I had was when they noticed I paid a mortgage off from a different bank account to the one they took their direct debit from – which cost time and money to sort out