Mortgage Express (Rosinca Mortgages) will not allow transfer of equity?

by Readers Question

10:42 AM, 26th October 2020
About a month ago

Mortgage Express (Rosinca Mortgages) will not allow transfer of equity?

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Mortgage Express (Rosinca Mortgages) will not allow transfer of equity?

Has anyone any advice for the following situation: 3 BTL properties with Mortgage Express (now Rosinca Mortgages) which still have 8 years left on a 25-year interest-only mortgage term.

The properties are jointly owned by myself and my Brother. We also each of us have our own substantial property portfolios which are independent of these 3 properties. I wish to buy out my Brothers half share of the equity in these 3 properties by way of a transfer of equity and retain the existing finance as they are on great interest rates of 1.75% over Bank of England base rate (BOE) The interest to rent cover ratio is ok and they are probably 60% LTV

Mortgage Express (Rosinca Mortgages) have refused my request for a Transfer of equity (TOE) and so I raised a formal complaint with them. The outcome of the formal complaint stated that their reason for refusal was that as I am financially sound there is no reason why I can not refinance elsewhere, they have also stated that they do not wish to lose the security of my Brother as a second person on these accounts as it reduces their security should there be any issue in the future.

I believe that Mortgage Express (Rosinca Mortgages) are just being awkward as they don’t like the fact that the mortgages are on good interest rates of 1.75% over BOE base. New finance would probably cost about another 2.25% extra and so much more expensive.

I am about to challenge the result of this formal complaint with the Financial ombudsman on the grounds of being unreasonable, (I’m financially good enough to refinance but not good enough for them to allow me to continue with the mortgages in my sole name)

If I do have to refinance then I shall take the opportunity to dispose of one of the properties that I would then consider to not be worthwhile renting any more due to the higher interest rate and Section 24. (And I have not put the rent up on this property for many years). This is a property that has been home to a single mum and her 10 children for several years.

Has anyone any constructive comments before I write to the Financial ombudsman thank you in advance.

Jim


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Comments

Neil Patterson

10:48 AM, 26th October 2020
About a month ago

Hi Jim,

Unfortunately you are absolutely correct and Mortgage Express are being deliberately awkward.

Their only real targets are to get as many mortgages redeemed as possible that are left on the old cheap tracker rates and to minimise arrears.

Anthony Johns

11:14 AM, 26th October 2020
About a month ago

Been there! Give me a call and I will talk you through what to do.

Tony Johns 07710 057 257

paul robinson

11:17 AM, 26th October 2020
About a month ago

I got the impression that all you can do with these existing old ME mortgages was either continue exactly as you are (on the great current deal) or move mortgage lender. Unfortunately can’t see you getting very far with trying to challenge, likely just wasting time

Darren Peters

11:59 AM, 26th October 2020
About a month ago

From Rosinca's point of view you are trying to increase their risk without rewarding them for that risk. Ie if things go wrong in future they can chase two people instead of one.

Chris Novice Shark Bait

12:01 PM, 26th October 2020
About a month ago

Hi Jim, I know from current bitter experience that the FOS are struggling to cope with their general volume of referrals, and will be well aware of M.E. and their awkward stance, which borders on the ridiculous. My case has only just been allocated to a case worker 2 years on. Because there are 3rd party litigations in progress they seem to be looking for any excuse to step aside. Heads up. I am trying to negotiate with M.E. but because I have an FOS complaint outstanding, they will make no further comment. I have, nevertheless just escalated another complaint to the FOS just within the 6 month deadline. Why? because my simple request for a redemption statement was met by an impersonalised generic letter stating that they would exercise their all money charge/consolidation rights and they wrongly assumed I would be selling the property. I have 2 properties with them and one is serious negative equity as a result of their irresponsible lending to developers who were scamsters and they traded with in a negligent fashion. My well founded allegations were not well received.
Anthony Johns, would like to know more.
perhaps all 3 of us should establish e-mail contact by some means.
Property 118. M.E. are a big issue causing unreasonable suffering in my view. Anyone else feel the same?

Windsor Woman

15:20 PM, 26th October 2020
About a month ago

I suggest you check out Financial Ombudsman (FOS) Trust Pilot and other reviews. They are abysmal.

After I was badly treated by Mortgage Express, who admitted lots of errors, I went to FOS. They too have behaved appallingly and at this point, I have not received justice, just a double whammy of incompetent organisations, who have sucked up my time and energy and given me a whole load of stress. If I had my time again or known about FOS' track record, I would not have bothered - just put it down to experience. They are not fit for purpose.

NewYorkie

17:57 PM, 26th October 2020
About a month ago

I'm with Siberite; another Topaz brand, and have just asked to transfer the equity in one property from my ex- to myself. I have 7.5 years remaining but I guess I can safely assume the transfer won't be permitted unless I agree to re-mortgage on to a higher rate. Payment isn't a problem; the rent is more than adequate, but after 8 years in limbo, I need to sort things out one way or another.

Puzzler

8:18 AM, 31st October 2020
About a month ago

The same regulatory terms may apply as to Mortgage Express. It may be a closed business since the bailout and cannot engage in further lending or alteration of terms so they may not be "being difficult". It has been the case for 12 years. The change of brand and transfer of the mortgage book makes no difference. There are some good deals at the moment, take your mortgage elsewhere.

Puzzler

8:42 AM, 31st October 2020
About a month ago

P.S. I have just taken a mortgage of 25% block, stressed income etc.) no more than 3.8%. Since I remember rates from before 2009 that doesn't seem all that high to me.

Jim S

9:20 AM, 31st October 2020
About a month ago

Reply to the comment left by Anthony Johns at 26/10/2020 - 11:14
Hello Tony,

Thank you for your kind offer and I shall ring you later.

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