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

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

10:42 AM, 26th October 2020, About 4 years ago 15

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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

Jim

9:41 AM, 31st October 2020, About 4 years ago

Reply to the comment left by Chris Novice Shark Bait at 26/10/2020 - 12:01
Hello Chris,

I agree with you about the Financial Ombudsman, about 5 years ago I had a complaint in with them about my personal home mortgage where my lender was offering further advances to all existing customers except it seemed for customers whose profession was a landlord. If I had been a plumber I would have passed but because I was a landlord they refused me the further advance even though my income was way above what was required for repayment criteria. The Financial Ombudsman sided with the lender and stated that this kind of discrimination was perfectly acceptable.

In my view Mortgage Express/Rosinca Mortgages should allow a TOE after they have stress tested me, I either am a safe bet or I'm not. LTV is 60% and if they had wanted that reducing to 50% I would have obliged and paid some of the lump sum off.

It seems wrong to me that a responsible Government backed lender can be allowed to play this kind of hardball with their customers. They have not given a satisfactory reason for declining the TOE because I am more than enough security for them on my own account. I am wondering if there is something in their customer services charter that would oblige them to behave in a responsible manner and treat their customers fairly.

Monty Bodkin

10:02 AM, 31st October 2020, About 4 years ago

Reply to the comment left by Puzzler at 31/10/2020 - 08:42
I'm paying less than half that on my Rosinca/MX.

As for "being difficult";

https://www.thisismoney.co.uk/money/mortgageshome/article-2583279/Landlords-complain-heavy-handed-tactics-taxpayer-backed-bad-bank.html

Puzzler

7:26 AM, 1st November 2020, About 4 years ago

Reply to the comment left by Monty Bodkin at 31/10/2020 - 10:02
Yes that is a stressed mortgage, TMW and BM just for a couple of examples both offer 1.9% or less at present for non-stressed loans

Puzzler

7:28 AM, 1st November 2020, About 4 years ago

Reply to the comment left by Monty Bodkin at 31/10/2020 - 10:02
That article is nearly 7 years old. I was just pointing out that this may have been a condition of the bailout and whilst their PR may not be good, their hands may be tied.

Monty Bodkin

11:04 AM, 1st November 2020, About 4 years ago

Reply to the comment left by Puzzler at 01/11/2020 - 07:26
TMW and BM just for a couple of examples both offer 1.9% or less at present for non-stressed loans

.....with a £1995 fee and/or running out after 2 years plus other restrictive criteria.

Taking an MX mortgage elsewhere doesn't make financial sense and should be a last resort, however badly they treat their customers.

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