Mortgage Express Harsh Realities re Mortgage Arrears

by Mark Alexander

11:56 AM, 16th December 2013
About 7 years ago

Mortgage Express Harsh Realities re Mortgage Arrears

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Mortgage Express Harsh Realities re Mortgage Arrears

It would appear that Mortgage Express are now operating a zero tolerance policy on buy to let mortgage accounts which fall two or months into arrears.

In recent months I have heard of several landlords who feel hard done by.

After just two months of mortgage arrears have accumulated Mortgage Express have called in their loans. Repayment of arrears does not appear to save people at this point. It’s too late! Mortgage Express have called their loan in and that’s their right to do so. Mortgage Express will happily accept payment for the mortgage arrears but they are not legally compelled to reverse their decision on calling in their mortgages. Some lenders are more tolerant but tot Mortgage Express it would seem. They have their instructions and they are sticking to them. Their objective is to recover as much money as possible – END OF STORY!

In the examples I have seen Mortgage Express has called in LPA Receivers to collect rents until such a point as tenants can be evicted and the property is then sold. Any surplus of sale proceeds over and above the mortgage and accumulated costs is then offset against any other Mortgage Express accounts which are also called in under their rights to consolidate. Once all Mortgage Express accounts are cleared any surplus balance is then returned to the borrower. However, in all of the cases I have seen to date there has been a deficit and Mortgage Express have then pursued this too, in many cases leaving their former borrower with little if any choice other than to consider personal bankruptcy.

Mortgage Express Harsh Realities

I have been asked by several borrowers whether I would be prepared to fight this for them. Whilst I think the situation is particularly harsh on both borrowers and tenants, now that I understand what is actually happening here I cannot see that anything illegal is being done by Mortgage Express.

It’s harsh but apparently it’s what all Mortgage Express buy to let borrowers signed up to.

The message therefore is do not fall into arrears on your Mortgage Express accounts.

It seems clear to me that Mortgage Express are now coming under massive pressure to call in mortgages which are in default. In my cynical opinion, that is the only reason they want to meet with their borrowers. It’s a fact finding exercise whereby they present opportunities for their borrowers to admit to being in default, other than for mortgage arrears.

My advice to all Mortgage Express borrowers is to read your terms and conditions very carefully and to follow them to the letter. If Mortgage Express want a meeting then ask them to confirm in writing what gives them the their rights to insist on a meeting and immediately seek professional advice. Also remember that if your tenants don’t pay you that’s not an acceptable excuse for not paying your mortgage. In fact, there is NO acceptable excuse I can think of other than Mortgage Express not taking payment. Therefore, if you haven’t got a decent liquidity fund I strongly recommend that you fully reference your tenants and purchase insurance against the risk of your tenants not paying your rent.

If it makes you feel any better the latest take on the word Gangsters in Banksters!



Comments

Mark Alexander

17:57 PM, 17th December 2013
About 7 years ago

Reply to the comment left by "Tony Church" at "17/12/2013 - 17:29":

I agree, the DPS should find in your favour but that doesn't mean they will. I have seen some very strange decisions. If they don't agree and return the deposit to the tenant then you can of course still go to the Small Claims Court. The big decision then would be whether to claim against your former tenant or the DPS!

One question in my mind though is this; should any refund go to you or the LPA receivers?
.

Romain Garcin

18:17 PM, 17th December 2013
About 7 years ago

Reply to the comment left by "Tony Church" at "17/12/2013 - 17:29":

When would your tenants' notice expire if they had served it the day they left? If that's before the expiry of your s.21 notice then I don't see on what basis you could claim up to that point.
But equally if their notice would have expired after your notice you could claim rent beyond the s.21 expiry (court court might decide this is cheeky but nothing states otherwise).

If LPA have been appointed IMHO money goes to them.

(S.21 has no effect on tenancy in general and doesn't entitle the tenant to anything, nor does it the landlor apart from allowing him to start court proceedings)

Colin Childs

18:25 PM, 17th December 2013
About 7 years ago

Reply to the comment left by "Puzzler " at "17/12/2013 - 15:55":

Would make sense. Any late arrivals will find this thread impossible to follow.

Mark Alexander

18:33 PM, 17th December 2013
About 7 years ago

Reply to the comment left by "Colin Childs" at "17/12/2013 - 18:25":

I agree but we don't have the ability to split threads 🙁
.

tony

20:23 PM, 17th December 2013
About 7 years ago

this is getting more confusing and contradicting from one to another, the LPA Receivers was removed soon after the tenants moved out. I thought the DPS was supposed to be clued up on things such as deposit disputes, if this matter is fairly straight forward as you said Mark,then surely their should be no confusion or strange decisions made by the DPS. And what is IMHO Roman?

Industry Observer

11:31 AM, 18th December 2013
About 7 years ago

No Raomain

If the notice served by the Landlord expires, and the tenant vacates on or after that date, but on a date before any notice served by the tenants expired, the tenant's liability ends at the date they vacate.

Becaue they have done what the notice demanded - return the property. They are liable to the date they left but no Court would penaise them beyond that, and for certain no Scheme would award any part of the deposit for such payments

Romain Garcin

21:47 PM, 18th December 2013
About 7 years ago

Reply to the comment left by "Industry Observer " at "18/12/2013 - 11:31":

If a tenant could just pack up and leave at any time after the expiry date of a s.21 notice, the landlords, including Mark here as I understand, who serve so-called "precautionary s.21 notices" would often face the problem of their tenants doing just that down the line.

Tony: 'IMHO' = In My Humble Opinion

Mark Alexander

21:57 PM, 18th December 2013
About 7 years ago

Reply to the comment left by "Romain " at "18/12/2013 - 21:47":

Tenants can leave at the end of their fixed term tenancy without notice anyway. If they don't leave on that date they must give notice.
.

Romain Garcin

22:43 PM, 18th December 2013
About 7 years ago

Reply to the comment left by "Mark Alexander" at "18/12/2013 - 21:57":

Absolutely.
However, Industry Observer's suggestion is that the tenant does not need to give any notice to leave at any time after a s.21 notice expiry since they "do what the notice demands".

tony

23:37 PM, 18th December 2013
About 7 years ago

if you read this feed properly you would see that they left before the s 21 notice expiry period.

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