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

Text Size

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.


Share This Article


Comments

David Lawrenson

15:23 PM, 12th April 2016, About 8 years ago

Reply to the comment left by "Joel Davis" at "12/04/2016 - 10:58":

Yes, I would urge all to challenge it too.... At he least it will annoy the hell out of MEx, which is not a bad thing

Matthew Harvey

14:18 PM, 14th April 2016, About 8 years ago

There were a few people looking to speak to me about Mortgage Express loans and the ability to negotiate a discount to the debt.

I have registered a business profile on Property118 and can be contacted through this for further discussion.

Many thanks,
Matthew

NW Landlord

14:22 PM, 14th April 2016, About 8 years ago

Can you post link please

Matthew Harvey

14:25 PM, 14th April 2016, About 8 years ago

NW.....try this.....http://www.property118.com/member/?id=10821

Thanks,
Matthew

Mark Alexander - Founder of Property118

15:11 PM, 14th April 2016, About 8 years ago

Welcome on board as an official sponsor of Property118 Matthew.

NOTE TO ALL - member profiles are linked by the member name.

Link to Matthew's profile is http://www.property118.com/member/?id=10821
.

Jan Martin

17:02 PM, 15th April 2016, About 8 years ago

I have received my annual statements from MX .
Pleased to say no changes .

David Lawrenson

18:09 PM, 15th April 2016, About 8 years ago

Yes, same here - received and no changes either.

neils26

12:32 PM, 16th April 2016, About 8 years ago

My annual statement has arrived this morn, and all mortgages have changed by amounts from 2p to 35p

There's no explanation why they should change at all from the previous many years of base+1.75% Changes to take effect from 1st May (so just within the 14 days notice required to change a direct debit ?).

It's ok saying 'Refuse to pay it' etc, but that would undoubtedly lead to credit ref problems and probably a 'Formal Demand' to repay the mortgage in 7 days (this clause is mentioned on each property statement). Perhaps this is what they hope to trigger ?

I think the answer is to write to them refusing to accept any change in the mortgage terms & conditions that specify Base+1.75%. But given the small amounts involved, prefer not to enter formal dispute at this time, and variation in payment is made as 'Payment under Protest' (a legal term meaning payment is being made, but its need to pay not accepted).

In my case, I want nothing more than to Exit this awful business, and will also suggest that a generous early settlement discount will lead to my portfolio being sold off over the next 2-3 years.

Any other comments ?

Rosanne Turvey

22:43 PM, 16th April 2016, About 8 years ago

I have also received my statements - two of them putting my mortgage up by 2p and 1p but the third being reduced by 2p. I too was mystified by this as the interest rates have not changed and my mortgages are variable so could not understand why the payments have been changed, On looking closer at the statements, in the box that says 'statement for the period 01/04/15 etc' the interest added for the year from 2015 to 2016 is 10p more than the payments that have been made for that year. In effect they are saying that I am 10p in arrears - I don't know why - all my payments are made on time and I have never ever missed a payment. It does seem worrying though.

neils26

10:01 AM, 19th April 2016, About 8 years ago

Could it be the 'Leap Year' this year that has caused these small changes ? That would make some changes to the annual interest, causing a small change in monthly payment. Good if they would tell us that. Anyway, it seems mx are not the most immediate threat to private landlords. Time for a sensible thread on how to avoid the interest relief changes, by incorporation etc..

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now