Tag Archives: Insolvency Practitioner

Mortgage Express or Mortgage Distress? Advice, Buy to Let News, Cautionary Tales, Financial Advice, Landlords Stories, Latest Articles, Mortgage News, Property Investment News, Property Investment Strategies, UK Property Forum for Buy to Let Landlords

The Mortgage Express exit strategy has been a hot potato since at least 2011 when they first met a group of 70 landlords at an event organised under the Property Tribes banner. Mortgage Express or Mortgage Distress

They have been slated by landlords for imposing terms and conditions which were buried in small print and which are no longer adopted by the mainstream buy to let lenders.

The bottom line for MX though is that their loan book is now the property of the UK tax payers and the organisation is pretty much run by Civil Servants, accountants, debt collectors/councillors and insolvency practitioners.

The Government have imposed tough targets and deadlines on the new MX team to reduce the loan book and therefore, it was inevitable that strong arm tactics, which many would describe as bullying, would be used.

Naturally they have gone for the easy targets and started by selling the concept of making over-payments to people who were too naive to work out that repaying a loan which typically costs 2.25% rarely makes sense. It’s possible to get a better return on that with a cash ISA or a deposit account in a bank or building society!  MX appear to have had scant regard to advising their clients to pay off more expensive credit first and they were never going to suggest investing any surplus into anything but reducing a debt with them were they?

The strong arm tactics have extended to imposing their “Right to Consolidate” which their contracts say allows them to use 100% of any sale proceeds to repay debts owed to them. It has even been implied on many occasions that if a borrower redeems one mortgage with Mortgage Express they can call in the rest! I’ve not seen these terms challenged in Court yet but I have come across borrowers who had stood up to Mortgage Express and there are quite a few examples on internet forums of MX having backed off. Bullies don’t like people who fight back.

Mortgage Express Reviews

General sentiment of landlords is that Mortgage Express borrowers should avoid reviews like the plague. The conspiracy theorists, of which I am one, are that MX have a very simple agenda and it’s not based on helping borrowers despite how they pitch it. It would appear the entire purpose of the meeting is for MX to persuade you to pay off or reduce your debt and/or to look for you to trip yourself up by admitting to breaching mortgage conditions which you were not necessarily aware of. Examples include:-

  • living in a property financed as a BTL
  • Letting a property which was financed as a private residence
  • letting to tenants which are now claiming benefits
  • where a property is an HMO

Would you know whether your tenants were claiming benefits though? What if they started claiming benefits after the tenancy started? What if the property became an HMO due to your local authority imposing selective or additional licencing?

Is it fair that MX could find one little problem, call in that loan and then call all the others in based on their right to consolidate conditions?

My Preferred Mortgage Express Exit Strategy

It has been mooted on several forums that MX have a target to collect a percentage of their loan book. I’m not aware whether the percentage target has ever been published but I’ve heard figures as low as 25% banded about. I suspect it’s much higher than that, otherwise, why would they carry the heavy administrative costs of their current activities as opposed to simply selling their loan book for 25% of it’s value? Perhaps they could and it’s a simple case of government ineptitude and politics preventing this from occurring? More likely, in my opinion, is that the government want to be seen to try to recover as much as possible of the tax payers bail out money.

If we knew what the desired recovery percentage was we could make suggestions. Let’s suppose the figure is 60%. Most buy to let landlords would happily refinance if their loans were discounted by far less than that. I’d certainly consider moving for a 25% to 30% write off of debt. Not every borrower would want or be in a position to go for such a deal but if only half did so, the remaining book, which I suspect would include a lot of toxic dent and low value assets due to negative equity, could still be shifted. They may only get 40 pence in the pound for these assets as a block sale but those extra 10% to 15% figures they would get from borrowers taking up their offers directly could well make up the balance.

Why don’t Mortgage Express just exit now?

I suspect it’s only a matter of time before Mortgage Express start offering golden goodbye deals to borrowers, it’s just a case of satisfying the tax payer that they’ve tried everything else first. Mortgage Express were given 7 years to exit and it is because we are into the final states of that period we are seeing them apply increasing pressure. Those of us who can survive the next few years will, I suspect, come out of this with a great deal but in the meantime we should expect the unexpected as well as underhand tactics.

What would you do if you were Mortgage Express?

What do you think Mortgage Express borrowers should and should not do to protect their interests?

Don’t be bullied by Mortgage Express

Before you agree to do anything with Mortgage Express talk to your fellow landlords. Go along to Landlords Association meetings or post comments/questions below or on Property Tribes. If Mortgage Express do bully you, fight back. If you don’t want to meet them don’t meet them. If they get aggressive with you just bear in mind that there are thousands of other Mortgage Express borrowers who are likely to have had similar experiences. Focus on the ideas that are legal and make the most sense. There are reported to be in the region of 50,000 Mortgage Express buy to let borrowers.

Via this link we have an excellent story as it unfolds of a landlord who was being forced to sell his home by Mortgage Express. It’s a very long discussion thread which was contributed to by several landlords and property professionals. To cut a long story short the landlord got his MP on side and Mortgage Express backed off.

Mortgage Express problems - You are NOT alone

 


Tenanted houses in Lincoln city for less than £90,000 Landlord News, Latest Articles, Property For Sale, Property News, Property Sales & Sourcing

Willow tree pic“Your Property Concierge ” Kelvin Kingsley has discovered some more bargains, and these are already let!

If you are looking for a low cost, low maintenance freehold property which is pre-let and will return instant cashflow then look no further.

These are almost new, ready tenanted, two year old, two bed terrace houses with a rental income of £500 pcm.

They are priced at £87,950 which equates to a gross yield of 6.82%. With the benefit of a mortgage of up to 75% of the purchase price the cash on cash return could be much higher.

NOTE – there are only three of these two bed units available and they will be sold on a first come first served basis.

There are also a few three bed semi-detached houses available at £109,950 with a rental income of £580.

Details about the development area:

  • Excellent rail and motorway access nearbyWillow tree kitchen pic
  • Off road parking included
  • Booming University population
  • 19 miles to A1 motorway
  • Lincoln city centre 2 miles away
  • Lincoln County Hospital 2.5 miles

There are several comparable sales listed on HM Land Registry in the last year for similar properties in the area. These units were selling between the range of £100,000 and £110,000.

To download a full copy of Kelvin’s “Due Diligence”, property specs and to get details on how to arrange a viewing or reservation please complete the form below.

The Property Ombudsman Logo

Your Property Concierge is a sister brand to Property118.com. Your Property Concierge does not charge fees to investors as we are retained by vendors which are typically developers or insolvency practitioners. According to the Estate Agency Act 1979 this makes us estate agents. Therefore, to keep ourselves compliant the Trading Name “Your Property Concierge” is registered with the ICO and is also a member of The Property Ombudsman redress scheme (membership number – D8072)


Buy to Let Estate Agents Landlord News, Latest Articles, Property News

If you had told me this time last year that I would soon be adding Buy to Let Estate Agent to my CV I would not have had a clue what you were talking about.

However, that’s exactly what we have become as a result of selling buy to let developments.

We have no plans to become a conventional estate agency where you can buy or sell your next home, however, estate agents is what we now are according to a law known as the Estate Agency Act 1979.

It’s all come about as a result of wanting to let you know about properties which could make ideal buy to let investments.

We didn’t want to charge fees to property investors but we often get the “heads up” on developments which make ideal buy to lets. Given that we have ‘filled our boots’ with deals personally (we’ve built our portfolio’s to a point we are comfortable) we decided to share the deals we would buy ourselves if were will still building our portfolio’s.

Clearly we can’t do this for nothing so we have started negotiating commissions with vendors (typically developers and insolvency practitioners) in return for referrals leading to sales.

To help ease the burden we have also teamed up with Kelvin Kingsley and we’ve created a new brand called “Your Property Concierge”.

The Property Ombudsman

To keep ourselves compliant we have registered the Trading Name “Your Property Concierge” with the ICO and also become a member of The Property Ombudsman redress scheme (membership number – D8072).

If you would like to be kept informed of properties we are marketing please complete the form below.


Repossession Bargains – Already Let Landlord News, Latest Articles, Property For Sale, Property News

My friend Kelvin Kingsley has discovered some more repossession bargains, the difference being these are already let 🙂

They are modern two bed flats in Greater Manchester, built just a few years ago. Most of them are sold but there are a few remaining and they will soon be snapped up by investors at the current asking price of just under £70,000. They are let to hospital staff for £475 a month which equates to a gross yield of 8.1%.

There are several comparable sales listed on HM Land Registry and if you go back to the peak in 2007 you will see that these units were selling between the range of £108,000 to £145,000. To download a full copy of Kelvin’s “due diligence” please complete the form below.

The Property Ombudsman Logo

We are now working exclusively with Kelvin who, as you will be aware if you are a regular reader of my articles, does not charge fees to investors as he is retained as an agent by vendors who are typically developers or insolvency practitioners. According to the Estate Agency Act 1979 this now makes us estate agents. Therefore, to keep ourselves compliant we have registered the Trading Name “Your Property Concierge” with the ICO and also become a member of The Property Ombudsman redress scheme (membership number – D8072)

 


Insolvency compensation rules for deposit and mortgages Landlord News, Latest Articles, Property News, UK Property Forum for Buy to Let Landlords

Insolvency compensation rules for deposit and mortgagesWhat are the compensation rules when a customer has both deposits (over £85,000) and an outstanding mortgage with the same failed bank (either offset or standalone)? What happened with either B&B or Northern Rock customers in this situation?

I wrote the following letter to both Intelligent Finance and the Financial Services Compensation Scheme but they gave differing responses. Continue reading Insolvency compensation rules for deposit and mortgages


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