Should I redeem my Mortgage Express mortgage?

by Readers Question

11:43 AM, 20th October 2014
About 4 years ago

Should I redeem my Mortgage Express mortgage?

Make Text Bigger
Should I redeem my Mortgage Express mortgage?

Hi guys

I currently have a mortgage on a London flat which I purchased 9 years. The flat is now worth about £160K – £170K and my outstanding mortgage is just below £100,000. Should I redeem my Mortgage Express mortgage?

My lender is Mortgage Express and although I would like to re-mortgage with them to pull out equity from the property I cant because they no longer lend.

I’m currently on 2.5% variable which is low compared to what’s obtainable out there these days.

I have been looking around for a lender to re-mortgage with but none seem to be able to offer a rate as good as Mortgage Express….. plus I’m looking for a lender who’ll consider the fact that I work as an IT contractor.

I feel trapped with Mortgage Express and I don’t intend to sell the property 🙁

Any advice?

Regards

Lammy



Comments

Mark Alexander

11:51 AM, 20th October 2014
About 4 years ago

Hi Lammy

I note your frustration and many more Mortgage Express borrowers will find themselves pondering a similar dilemma as property values rise.

You have a cracker of a deal with MX so I can fully understand why you don't want to pay it off and start all over again; paying fees and a higher interest rate.

However, you need to factor in the cost of lost opportunities if you do nothing and leave things as they are. If you are able to refinance you may be able to do another deal which could make you more money than you lose as a result of refinancing.

There is no way to get more funding out of MX or to take a second mortgage which would require a second charge. You are not tied into MX because you could repay them at any time but I can see why you would feel tied to them.

If you have any other MX mortgages the dilemma can be even greater because if you redeem one they can force you to redeem them all - see http://www.property118.com/mortgage-express-right-to-consolidate/36168/

The fact you are an IT contractor should not present a problem when you come to refinance. However, many other factors will need to be taken into consideration of course.

I recommend you to seek professional advice from a whole of market broker.
.

Mike W

13:54 PM, 20th October 2014
About 4 years ago

Even though it will cost you to leave, you would be better to be in control of when you leave rather than leave it up to your Mortgage Express. At least you have time to research and choose your new lender now. If Mortgage Express are in control you will be under pressure and the market may not be as good as it is today ....

Jan Martin

18:10 PM, 20th October 2014
About 4 years ago

Reply to the comment left by "Mark Alexander" at "20/10/2014 - 11:51":

So if I paid one of my mortgages to MX then they would take my other properties from me . Is that what you are saying ? .

Mark Alexander

18:19 PM, 20th October 2014
About 4 years ago

Reply to the comment left by "Jan Martin" at "20/10/2014 - 18:10":

I am saying they would have the contractual rights to call in the remaining mortgages. They have been using these rights to "persuade" their borrowers to sign new T&C's allowing them to retain their mortgages, albeit on ludicrous new terms. They have also been using there power to force their borrowers to use any sale proceeds to reduce other mortgage balances.
.

Jan Martin

10:09 AM, 21st October 2014
About 4 years ago

Reply to the comment left by "Mark Alexander" at "20/10/2014 - 18:19":

Whats the answer then Mark . Is there anything we can do ?

Adrian Jones

10:24 AM, 21st October 2014
About 4 years ago

Reply to the comment left by "Jan Martin" at "21/10/2014 - 10:09":

I think Mark was spot on with his original advice ie refer it to a broker to check the market and see what options are available.

Mark Alexander

10:38 AM, 21st October 2014
About 4 years ago

Reply to the comment left by "Jan Martin" at "21/10/2014 - 10:09":

I can't advise you in isolation of all the facts and I am no longer insured to offer advice of this nature. Therefore, I recommend you to speak to a fully qualified, experienced and insured whole of market broker - see >>> http://www.property118.com/member/?id=314
.

philip allen

13:11 PM, 25th October 2014
About 4 years ago

Mark has mentioned Howard Reuben, excellent choice. I could also recommend Mark Edwards of Mortgages and Insurance. I'm working with him at present and can't rate him highly enough. I'm sure that Mark A would be happy to add a link to Mark E.

Mark Alexander

9:14 AM, 27th October 2014
About 4 years ago

Reply to the comment left by "philip allen" at "25/10/2014 - 13:11":

Indeed Philip, Mark is indeed another fantastic broker and we go back many years - see >>> http://www.property118.com/introducing-mark-edwards/65509/
.


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

Millennials stumble on the Property Ladder

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