Mortgage Express – Should I redeem?

Mortgage Express – Should I redeem?

8:59 AM, 8th June 2015, About 7 years ago 69

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With all the issues with Mortgage Express I have taken the decision to lie low and avoid meetings with them.

I have 3 properties which are in mine and my ex business partner’s name and one in my own name. Mortgage Express - Should I redeem

Problem: The one in my own name has equity and I’d like to sell. The others don’t have equity but I’m scared of selling the one with equity for 2 reasons:

1. They may ask me to use that equity to pay towards mortgages on the other properties. Is this the case even though it’s solely in my name and the other three are in both my name and my ex business partner’s?

2. I’m scared of waking a sleeping dog and getting another visit request

Please can someone advise?

Thanks

Fiona



Comments

Mark Alexander - Founder of Property118 View Profile

16:42 PM, 30th January 2016, About 6 years ago

Reply to the comment left by "Chris Green" at "30/01/2016 - 16:31":

If you average LTV across all six is less than 85% they are unlikely to cause you any problems at all, providing you don't fall foul of any of your mortgage conditions of course!

You will struggle to find a better interest rate than you've got with MX so I'd stick with them if you want to. If you have no other finance to pay off with higher rates and you're certain that you won't need to borrow money in the foreseeable future then you could always pay down your MX loans. However, their rates are only 2.25%, surely you can do better than that? If you have enough cash why not buy another property outright?
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Chris Green

17:05 PM, 30th January 2016, About 6 years ago

Hi Mark, thanks for your extremely rapid reply! I get everything you say, and the alternatives for my money and generous MX rates now etc. However, you must take into account that, having heard all the strokes MX pull, I simply want them out of my life. As far as I know I am breaching no conditions - but I simply dont trust them. I'm sure they can pick on anyone and find a breach.I wish to wind down my activities in this business anyway now because of this and the general landlord backlash by the government. I guess to many I am acting irrationally - but it suits me fine. I have 5 other properties (11 in total therefore) which I am in the process of selling off successfully. My intention would be to, once I have escaped MX, to begin then selling off the 6 properties in question (after ERC have expired) - thus tidily ending my landlord career. Therefore I was just asking for advice re any logistical tips/advice in redeeming all MX mortgages at once. Thanks again.

Mark Alexander - Founder of Property118 View Profile

17:12 PM, 30th January 2016, About 6 years ago

Reply to the comment left by "Chris Green" at "30/01/2016 - 17:05":

Have you taken Capital Gains Tax into consideration?
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Chris Green

17:35 PM, 30th January 2016, About 6 years ago

Hi Mark. Yes I have taken into account all of the tax/opportunity cost/cash flow/profit scenarios into account of selling 5 houses now and 6 as soon as possible afterwards.
As I said, I appreciate that to many I may not be acting logically from a classical investment mind set. However, that is not the issue here. I have the luxury of being able to refinance away from MX in order to get them out of my life - and still be comfortable. Affordability is not an issue. Therefore I was just asking only for advice re any logistical tips/advice in redeeming all MX mortgages at once. Thanks again.

Mark Alexander - Founder of Property118 View Profile

17:42 PM, 30th January 2016, About 6 years ago

Reply to the comment left by "Chris Green" at "30/01/2016 - 17:35":

Why go to all the expense of refinancing only to sell?

MX are not exceed using their right to consolidate if your LTV across all properties is less than 85% LTV. On that basis, and given that you couldn't refinance for more than 85% LTV anyway you might as well just pay down and sell one by one.
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Chris Green

6:27 AM, 31st January 2016, About 6 years ago

Mark I really appreciate your input here and that you are trying to help me, but you must understand that I have taken all the scenarios, suggestions that you have mentioned in your posts into account already. My decision is based on my personal desires and intentions. As I said previously, it may seem illogical to some - as it apparently does to you. I am simply looking for advice, thoughts or opinions on any logistical tips/advice in redeeming all MX mortgages at once. Thanks again.To reiterate I do not need alternative actions to be suggested thanks. I have 100% decided what I want to do and am simply seeking advice on the best way to go about it.

Mark Alexander - Founder of Property118 View Profile

11:32 AM, 31st January 2016, About 6 years ago

Reply to the comment left by "Chris Green" at "31/01/2016 - 06:27":

I think you will struggle to find a good broker to make those suggestions because they are compelled by law you give you best advice, and that is what I have done.

I wish you all the best and invite others to make comments.
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S.E. Landlord

13:09 PM, 31st January 2016, About 6 years ago

Reply to the comment left by "Chris Green" at "31/01/2016 - 06:27":

I would recommend that you speak to MX about your plans to sell the properties and ask for redemption statements, they will advise if they will want to exercise their right to consolidate on the redemption of one mortgage. At the very least this will set out if you are working to a set timetable.

If MX would like people to redeem it makes sense for them to work with borrowers to this aim.

I redeemed one mortgage with MX and they were fine about leaving other mortgages in place and I did ask them if they would look to exercise their right to consolidate.

Chris Green

16:56 PM, 31st January 2016, About 6 years ago

Mark. Thanks but I wasn't looking for a brokers advice, I was looking for practical advice having decided to go down my chosen route.
However thanks SE Landlord. The trouble is I am just bothered that if I approach them then I have effectively put my head above the parapet and, even though yes - I want to leave them and pay them all their money back, they may just decide to play dirty in some way. From what I see and hear they are not really to be trusted to treat people in a civil and fair manner. I was planning to quietly arrange 6 new mortgages and then play my cards all at once - and wave MX goodbye. However, reading through this thread it is heartening that around summer 2015 they seemed to be being reasonable with a couple of people here. Maybe there is a big sell off lined up to a 'proper' commercial operation - as the press link from Mark mentions? However, having said that, I am not easily hoodwinked and remain totally sceptical of them.

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