Fair Rents (Scotland) Bill or Artificial state manipulation of free market rent?10:34 AM, 6th November 2020
About 4 weeks ago 36
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.
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