Mortgage Express are forcing me to sell my home – HELP!

Mortgage Express are forcing me to sell my home – HELP!

16:19 PM, 21st March 2013, About 9 years ago 148

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Mortgage Express are forcing me to sell my homeI own a property in the UK that I rent out since being made redundant, getting offered work in Spain and moving approx 4 years ago. My UK property is my only home and I intend on returning to live in it when the UK comes out of recession and I can get a decent job again. I have a standard variable residential mortgage with Mortgage Express.

I did not tell Mortgage express initially that I was renting my house out as it is my only home, I plan to return there and I do not know how long my work will last in Spain.

They have now been advised and are refusing to give us permission to rent the property out. Therefore they are saying that we are now in breach of contract. They are giving us no options whatsoever with them, they won’t change us to a buy-to-let mortgage and they will not give us more time to improve our LTV rate to be able to remortgage with another company.

We have been told we can not currently remortgage as the LTV is very high and we live in Spain. We are unable to sell as the sale price will not cover the mortgage, second charge on the property and the sale/solicitor fees.

Mortgage Express as saying that if we do not do any of these they will foreclose the mortgage and repossess our home.

We have been a loyal customer for 10 years, we have never been late or missed a payment, and now we have very good, loyal, paying tennants who is enabling us to pay the mortgage each month.

On top of the monthly mortgage payments we want to pay them extra to repay the capital as quickly as we can, or at least lower the mortgage value to improve the LTV.

They will do not do anything to help us.

We feel we are being treated very unfairly. Where they have been bought out by the Government they have changed their policies and taken away all of our options. We did not give permission for these changes, we did not sign anything to adhere to their new policies and we want to know how that affects the mortgage contract with us and if we have any case against them.

All advice very much appreciated.

Gary Byrne



Comments

by Mark Alexander

0:42 AM, 20th March 2014, About 8 years ago

URGENT UPDATE TO ALL MORTGAGE EXPRESS BORROWERS

Please see my linked article below and help to spread the word in any way you can.
.

by George Sandy

10:41 AM, 26th June 2014, About 8 years ago

MX are the lender on a property have knowledge of. Borrowers bought as main residence about 7 years ago. They went to work overseas, initially for 1 year and duly notified MX and obtained, without any hassle, permission to let. This is still in force 5 years later. However this permission predates their collapse, so this may have some bearing.

by lisa Millen

12:55 PM, 23rd October 2014, About 7 years ago

Hi

I have read through this thread with interest as I also have a mortgage with mortgage express and have had for several years. Ill be honest this thread really put me off and made me panic as I thought it would be a nightmare if I wanted to rent out my home. Im on a good deal at the moment however it is a residential mortgage so I automatically assumed id need to remortgage or have huge hiked interest rates or wouldn't be able to do it so I came up with a thousand other ways in my head to help with my own situation..
Then I thought why not just ask them!!. so I did! I found out I can rent out for 12 months with a fee of £1250 which could be reviewed again at 12 months. all that panic for nothing. of course £1250 isn't a small sum and 12 months can pass quickly however spread over a year I can swallow up with my rental income and who knows my plans in a year so for all those who have a mortgage with Mortgage X maybe its worth just being upfront and asking what your options are first!

by Mark Alexander

13:11 PM, 23rd October 2014, About 7 years ago

Reply to the comment left by "lisa Millen" at "23/10/2014 - 12:55":

Hi Lisa

Personally I think a fee of £1,250 for consent to let is outrageous profiteering but that's just my personal opinion.

What are your contingency plans if you tenant doesn't want to move out a year from now and MX withdraw consent?
.

by lisa Millen

13:30 PM, 23rd October 2014, About 7 years ago

Reply to the comment left by "Mark Alexander" at "23/10/2014 - 13:11":

Yes its not cheap and I totally agree , however my personal circumstances mean I do not wish to re mortgage right now . I will long term ,sell or possibly return however for the interim I will either get a lodger or rent the house fully . The difference of the two incomes being around £1000!! so £100 a month deducted from £1000 is a preferred option.
the benefits of a lodger means I can return several weekends a year ( im going abroad) however the full rental income of a full time AST financially makes more sense currently.

Whilst Id rather not pay £1250 it is a short term solution and I will make different provisions in the long run which make more long term financial sense .However right now Id rather the swallow the £1250 as it suits my needs than refuse to do it purely on a moral basis.
I will have an AST for 6 months on a rolling contract and I work in lettings so fully understand how the process works and its extremely unlikely I will wish to continue on this basis for another year after the 12 months.

My post was to outline there are options to rent if selling or re mortgaging are not an option, naturally having long term contingency plans along side.

I also look at it like this, if I re mortgaged to a buy to let my mortgage payments would without doubt rise more than £100 pcm and I then couldn't return the home and live in it myself after 12 months.

by Mark Alexander

13:37 PM, 23rd October 2014, About 7 years ago

Reply to the comment left by "lisa Millen" at "23/10/2014 - 13:30":

Hi Lisa

It's also MUCH easier to get a lodger out of your property if things don't go to plan, e.g rent not paid, disrespect of property, neighbours etc. You could easily lose thousands in lost rent and legal fees if a tenancy goes wrong but you can kick a lodger out within a week and change the locks because lodgers have far less rights.

Think long and hard before you commit yourself.
.

by lisa Millen

13:46 PM, 23rd October 2014, About 7 years ago

Reply to the comment left by "Mark Alexander" at "23/10/2014 - 13:37":

thanks for the advise, however as I mentioned im in lettings I actually have a lettings company, so Im probably more able to fully understand the pitfalls of long term tenants then anyone else and theyre not ALL bad 😉
Of course there is always that risk but there is with most things at the end of the 6 month AST id have a good idea of the whole situation and would have time to react accordingly
Thanks again

by Adrian Jones

13:47 PM, 23rd October 2014, About 7 years ago

Reply to the comment left by "Mark Alexander" at "23/10/2014 - 13:37":

Presumably a lodger comes under the Government's rent a room scheme which allows £4,250 pa tax free.

by Mark Alexander

13:50 PM, 23rd October 2014, About 7 years ago

Reply to the comment left by "Adrian Jones" at "23/10/2014 - 13:47":

Very good point, another good reason to go with the lodger option.
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