Mortgage Express – Are they looking to break mortgage contracts?

Mortgage Express – Are they looking to break mortgage contracts?

13:49 PM, 5th April 2016, About 8 years ago 98

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Mortgage ExpressMortgage Express have written to many landlords warning about a review of current interest rates and repayment types.

The concern of readers is that Mortgage Express may be looking to break mortgage contracts on long standing tracker reversion rates in the same way the West Brom have done. The Property118 organised class action against West Brom is due to have the High Court Appeal heard this month 27th-28th of April.

The letters from Mortgage Express state:


Your monthly payments may be changing

We are planning to introduce a new annual payment review to ensure your monthly payments remain on track. This review will consider your repayment type, current interest rate, your payment due date, all payments received, your outstanding balance and the remaining term for each of your mortgages.

The result of this review may lead to a change to each of your monthly payment amounts.

This will be implemented to coincide with the next annual mortgage statement for each of your accounts.

Your annual review

Your annual review will be detailed in all future annual statements, which will show any adjustments to your monthly payment amounts and steps, if any, you need to take as a result.

When you do receive confirmation of your new payment amount, in your next annual statement. please change your monthly payment accordingly. If you pay by Direct Debit, you don’t need to do anything we will automatically collect the new amount from your designated bank account.

Any questions you may have regarding the change to your monthly payment amount will be addressed in the Frequently Asked Questions we will provide with your annual statement. If you have any questions about this letter, call us on 0330 159 2591.”


Bearing in mind how aggressive Mortgage Express have been in attempting to get as many loan accounts and as much of their lending repaid as possible we do not know how ominous a sign this is yet.

Are they looking to break tracker rate contracts and/or convert interest only loans to repayment?

We will keep you posted with the help of readers.

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Fed Up Landlord

14:07 PM, 5th April 2016, About 8 years ago

I rang them today and was assured that as long as I was not behind with my payments
( which I never have been) then all would be okay. No interest rate rise no change in payments. Yeah. Right.

Allan Simpson

14:12 PM, 5th April 2016, About 8 years ago

I phoned this morning and was advised that any changes would only be £1 either way.

David Lawrenson

14:16 PM, 5th April 2016, About 8 years ago

The trouble for MEx is that there is no small print "get out of jail" clause in their mortgage documents, unlike the one that our Baggies friends are trying to use - there is none, nil , nada
I got the letter, rang them and received a load of flannel from a customer service drone.
However, said drone was aware of the West Brom case!
Have complained and asked for clarification as to why I got the letter.
It is rather odd.

Jan Martin

14:20 PM, 5th April 2016, About 8 years ago

Reply to the comment left by "Gary Nock" at "05/04/2016 - 14:07":

Ive just received a letter the same Gary . Like you I have never been behind with payments so hoping I can presume that my payments will stay the same too .

David Lawrenson

14:20 PM, 5th April 2016, About 8 years ago

Reply to the comment left by "Allan Simpson" at "05/04/2016 - 14:12":

Sounds like a good way to waste money on a rather pointless mailing, then!

Fed Up Landlord

14:33 PM, 5th April 2016, About 8 years ago

Mmm. Always look at the motivation behind such letters. I said to the customer lack of care assistant that with the kicking that landlords are having at the moment this is the last thing that we need - an arbitrary increase in rate, or perhaps this is what's coming:

"As a result of increased scrutiny from the BOGO (Bank of George Osborne) we are looking at your loan to value and find it above our maximum limits. therefore you need to pay £xxxx to reduce it to this level or pay an additional amount each month so at the term expiry it's at the maximum LTV"

David I hope that you are right that there's no West Brom or BOI clauses in there to enable them to do this. I am sure they would have done it before now if there was.

Ed Atkinson

14:41 PM, 5th April 2016, About 8 years ago

I am not a West Brom customer but I pitched in to support the campaign because I'm an MEx borrower and have BM Life-of-loan Trackers too. It is just this potential scenario that caused me to help fight West Brom.

I am pleased to hear the High Court Appeal is at last happening. I hope you'll keep peripherally-involved supporters like me as informed as you can.

Fingers-crossed, Ed

David Lawrenson

14:47 PM, 5th April 2016, About 8 years ago

Reply to the comment left by "Gary Nock" at "05/04/2016 - 14:33":

Hi Gary,

I went through all the documents I have for all the mortgages I have with MEx with a fine tooth combe, and found no get out clause a la the ones our pals in the West Mids are trying to use.

You might be right though, it could be a follow on from the PRA assault - see my blog - which might mean they look to get us to reduce below a certain LTV. I have not looked at the small print to see if they could do this - maybe someone else could, (but my own LTVs are very low so I would be OK on that score, so I'm all right Jack).

Still, I was astounded that the drone knew about the West Brom case though - could be coincidence of course.

David Lawrenson recently posted...Buy to Let Mortgage Borrowing Limits

Matthew Harvey

15:02 PM, 5th April 2016, About 8 years ago

By way of introduction, we are a debt advisory practise in the UK and Ireland specialising in assisting borrowers in their discussions and negotiations with lenders. This can be in instances of arrears / non-performing loans, perfoming loans, the misspelling of interest rate products (e.g. swaps) and / or general issues of complaint.

The majority of our work is focussed on negotiating a discount to the level of debt in circumstances where the borrower can refinance or repay the outstanding liabilities.

In instances where a loan is perfoming to terms - i.e. payments are up to date and the borrower is compliant with the terms of the facility documentation - a lender is unable to change the terms of the loan facility as is being alluded to in the above. Therefore whilst the exact position would depend on the terms of the facility dopcumentation, it is unlikely that ME ha the ability to insist on interest only loans converting to capital and interest terms or a new (greater) interest rate for example.

We are currently engaged by a UK client with exposure to Mortgage Express where the loan facilities are performing to terms.

It is well publicised that Mortgage Express seeks to reduce its balance sheet and we have enquired as to the ability to obtain a discount or settlement to the level of existing indebtedness in the event that our client is able to refinance the borrowings. We have received a positive response from ME and now seek to negotiate the greatest discount possible on behalf of our client.

Neil Patterson

15:06 PM, 5th April 2016, About 8 years ago

Reply to the comment left by "Matthew Harvey" at "05/04/2016 - 15:02":

Unfortunately that did not stop West Brom who we are locked in a high court legal battle with or Bank of Ireland.

Watch this space.

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