Mortgage Express reveal 4.09% fixed rate deal for five years (existing borrowers only)

by Property118.com News Team

6:43 AM, 19th May 2011
About 8 years ago

Mortgage Express reveal 4.09% fixed rate deal for five years (existing borrowers only)

Make Text Bigger
Mortgage Express reveal 4.09% fixed rate deal for five years (existing borrowers only)

Mortgage Express logoThe bank closed it’s doors to new lending a few years ago as a result of the credit crunch and has a strategy to clear all existing lending within eight years.

They are encouraging redemptions (waiving penalties) and selling off loans to achieve their goal so they are definitely serious.

Their latest offering is a five year fixed rate at 4.09% to existing borrowers only.  The deal is a bit sketchy and we don’t know yet whether the ERC’s will apply to these fixed rate deals or what the reversion rate will be at the end of year five.

Whilst the rate will appear attractive to many borrowers there is a catch.  The new mortgage term is only seven years! They want rid of their borrowers within their deadlines and are highly unlikely to extend the term.  Therefore, if you have a 25 year term now, and you decide to switch to the fixed rate, you will be forced to refinance or sell your property within seven years or risk repossession.

The bank has predicted that 80% of its lending will be at risk if bank base rates increase to 5% .

Before switching you should consider the potential implications and seek independent advice.

If you are unsure what rate of interest your property portfolio could withstand then check out our Number Crunchers.  You will need to become a Member but it’s free.  The program is very easy to use and a Portfolio can be analysed within just a few minutes. You do not need a degree in maths to understand this, just enter the figures and the calculations are all done for you instantly.



Comments

Adrian Bromell

17:11 PM, 24th May 2011
About 8 years ago

I just got off the phone to the mortgage express as I have a btl mortgage with them. The guy knew nothing about this deal / offer / rate.
Has anyone else has confirmation it exists?

Mark Alexander

9:32 AM, 26th May 2011
About 8 years ago


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Change to Universal Credit rent arrears payments

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More