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:

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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.”

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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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Comments

Monty Bodkin

16:26 PM, 5th April 2016, About 8 years ago

Reply to the comment left by "Gary Nock" at "05/04/2016 - 15:20":

"Any idea on ball park percentage reductions off the outstanding loan?"

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/5603391/Well-pay-you-25000-to-take-your-mortgage-elsewhere.html

Hard-pressed lenders, desperate to reduce the size of their loan book, are offering to pay off up to 20pc of some customers' outstanding mortgages.

From the same article-

while Mortgage Express, the specialist lending arm of the now defunct Bradford & Bingley, is offering to waive redemption penalties

My early redemption penalties were 5%.

I was offered around 7% reduction from Bank of Ireland.

Mx have now got rid of the easy targets, they are left with savvy hardcore landlords who will be difficult to pressure into redeeming. I reckon they will need to be offering at least double digit % reductions.

Mine are 'worth' 20% off to me before I'd even consider it.

Monty Bodkin

16:32 PM, 5th April 2016, About 8 years ago

Reply to the comment left by "David Lawrenson" at "05/04/2016 - 16:02":

Other lenders have the same type of small print as West Brom

My Mx loans do not.
If yours do, then please post them.

Monty Bodkin

16:38 PM, 5th April 2016, About 8 years ago

Reply to the comment left by "Gary Nock" at "05/04/2016 - 16:23":

"Probably a gagging clause in the settlement papers."

Maybe, but there was no such clause with my Bank of Ireland 7% deduction offer. It would be very difficult to keep quiet nowadays with anonymous discussion boards.

Kathy Evans

16:46 PM, 5th April 2016, About 8 years ago

Reply to the comment left by "Monty Bodkin" at "05/04/2016 - 16:32":

Can't find anything in mine and I am worried as, although I have neverf been behind or breached any terms, owing to the fall in house prices over the last few years, the LTV is "not what it was" by a long way. Any advice gratefully accepted.

BTW I really hate the new screen layout - when I type a comment it disappears under the pane at the right and I can't see what I'm typing.. The bar at the left just seems like a waste of space. Bah!

David Lawrenson

17:15 PM, 5th April 2016, About 8 years ago

Reply to the comment left by "Monty Bodkin" at "05/04/2016 - 16:32":

I had said my MX ones don't have any such clause that could be used as a get out either.
I know C&G have such a clause and I know Barclays -Woolwich may do - and anyway their trackers follow the Barclays base rate not the BOE one, so I guess there may be some risk there.

Monty Bodkin

17:20 PM, 5th April 2016, About 8 years ago

Reply to the comment left by "Kathy Evans" at "05/04/2016 - 16:46":

Just searched my T&C for LTV and the only relevant thing I found was if there is a shortfall at the end of the mortgage term then the borrower must cover it.

Unless someone can quote verbatim a clause from the Mx T&C then I think you have nothing to worry about.

p.s I find the new screen layout annoying too!

Kathy Evans

17:32 PM, 5th April 2016, About 8 years ago

Reply to the comment left by "Monty Bodkin" at "05/04/2016 - 17:20":

Thanks for that, Monsieur Bodkin. I just hope MX think the same ...

Alex Ricote

17:44 PM, 5th April 2016, About 8 years ago

Hi All
Just picked up on this.
I have a loan with them which I believe is a PVR ( Product Variable Rate) linked to the BOE rate. Currently 2.25% ( 0.5+1.75).
Does anyone know if I'm likely to be affected?
Haven't received anything in the post yet?
Thanks in advance.

Mark Alexander - Founder of Property118

17:45 PM, 5th April 2016, About 8 years ago

Reply to the comment left by "Kathy Evans" at "05/04/2016 - 16:46":

We are working on a fix for the commenting box, please bear with us, Rome wasn't built in a day.

You can stretch it from the corner though (desktop only) if that helps.

It works fine on mobile too.
.

22:12 PM, 5th April 2016, About 8 years ago

I too phoned MEx regarding my letter and was told repayments on my interest only mortgage were being recalculated from 2009 and that from the start of April I would be paying approx. £10 LESS a month. Disbelief flooded over me.

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