Tag Archives: mortgage arrears

Mortgage Express Harsh Realities re Mortgage Arrears Latest Articles, UK Property Forum for Buy to Let Landlords

It would appear that Mortgage Express are now operating a zero tolerance policy on buy to let mortgage accounts which fall two or months into arrears.

In recent months I have heard of several landlords who feel hard done by.

After just two months of mortgage arrears have accumulated Mortgage Express have called in their loans. Repayment of arrears does not appear to save people at this point. It’s too late! Mortgage Express have called their loan in and that’s their right to do so. Mortgage Express will happily accept payment for the mortgage arrears but they are not legally compelled to reverse their decision on calling in their mortgages. Some lenders are more tolerant but tot Mortgage Express it would seem. They have their instructions and they are sticking to them. Their objective is to recover as much money as possible – END OF STORY!

In the examples I have seen Mortgage Express has called in LPA Receivers to collect rents until such a point as tenants can be evicted and the property is then sold. Any surplus of sale proceeds over and above the mortgage and accumulated costs is then offset against any other Mortgage Express accounts which are also called in under their rights to consolidate. Once all Mortgage Express accounts are cleared any surplus balance is then returned to the borrower. However, in all of the cases I have seen to date there has been a deficit and Mortgage Express have then pursued this too, in many cases leaving their former borrower with little if any choice other than to consider personal bankruptcy.

Mortgage Express Harsh Realities

I have been asked by several borrowers whether I would be prepared to fight this for them. Whilst I think the situation is particularly harsh on both borrowers and tenants, now that I understand what is actually happening here I cannot see that anything illegal is being done by Mortgage Express.

It’s harsh but apparently it’s what all Mortgage Express buy to let borrowers signed up to.

The message therefore is do not fall into arrears on your Mortgage Express accounts.

It seems clear to me that Mortgage Express are now coming under massive pressure to call in mortgages which are in default. In my cynical opinion, that is the only reason they want to meet with their borrowers. It’s a fact finding exercise whereby they present opportunities for their borrowers to admit to being in default, other than for mortgage arrears.

My advice to all Mortgage Express borrowers is to read your terms and conditions very carefully and to follow them to the letter. If Mortgage Express want a meeting then ask them to confirm in writing what gives them the their rights to insist on a meeting and immediately seek professional advice. Also remember that if your tenants don’t pay you that’s not an acceptable excuse for not paying your mortgage. In fact, there is NO acceptable excuse I can think of other than Mortgage Express not taking payment. Therefore, if you haven’t got a decent liquidity fund I strongly recommend that you fully reference your tenants and purchase insurance against the risk of your tenants not paying your rent.

If it makes you feel any better the latest take on the word Gangsters in Banksters!


Aldermore offer Buy to Let for customers with light adverse credit Buy to Let News, Latest Articles

Since the credit crunch it has been extremely difficult for anyone without a perfect credit history to obtain a Buy to Let mortgage. Mainstream lenders have not been interested in entertaining any mortgage arrears, CCJs or defaults until now.

Aldermore have changed their Buy to Let criteria  allowing a mortgage to be considered for customers who have had:

  • 1 or 2 missed mortgage payments over 12 months
  • CCJs and Defaults registered over 3 years ago
  • Missed unsecured credit payments such as credit cards, mobile phone, loans etc

In recent years most options open to Buy to Let customers with any adverse credit would have cost 8-10% and even up to 15% for more serious cases.

This is obviously a very clever attempt to capture market share in a niche area, but really does help a lot of investors who have had a blip and are still a good risk

The Aldermore Product range starts from:

  • 3.98% for a 2 year fixed fee 2.5% at max 75% LTV
  • up to 4.98% with £1,999 fees for their 80% LTV products.

Aldermore Criteria includes:

  • No minimum income for experienced Landlords or £25,000 min for First time Landlords
  • Min Value of a property £75,000
  • No DSS tenants
  • Max 5 properties with Aldermore

You can get a full quote on our Buy to Let mortgage sourcing Calculator if you wish (CLICK HERE)

Or if you need any help with a Buy to Let application

Email: info@property118.com

Tel: 01603 489118Aldermore


Buy to let anguish – landlord being repossessed – rent paid 6 months up front! Latest Articles, UK Property Forum for Buy to Let Landlords

My daughter moved to Manchester for work on a temporary contract in March 2013. She stayed with friends initially but found a flat to share in June 2013. As she only had a temporary contract the letting agents would only allow her to take the property if she paid the rent upfront for first six months and a deposit too. Buy to let anguish

I thought that as I am a landlord myself that I would be able to guarantee the rent but this was also not acceptable as I am self employed and do not have a guaranteed income.

My daughter agreed to pay the six months rent up-front on condition that the flat had all required remedial work done before they moved in. A move in date was agreed with the agent but when my daughter arrived to receive the keys none of the remedial work had been carried out on the property. The agent asked if they could give them another week so that the landlord could get the work done. This was impossible as they had nowhere to go so they had to live in it and help to refurbish it themselves.

At this point they were both very happy until today when they received a letter from a solicitor saying that the landlord does not have a buy to let mortgage, is in mortgage arrears and that they will have to vacate the property.

He advised them to visit citizens advice for help with this situation. My initial question is how can they be removed from the property so quickly?

The property was let through an agent surely they should check that they have correct mortgage , gas safe cert etc . I show prospective tenants a pack containing mortgage, house insurance, gas safe cert, electric cert, EPC, and tenancy agreement.

Hope someone can advise so that I can put my daughter’s mind at rest.

Thanks

Kevin Reid

 


Landlord being repossessed for mortgage arrears – what rights does the tenant have? Latest Articles

Landlord being repossessed for mortgage arrears - what rights does the tenant have?I stumbled across one of your articles outlining Squatters rights.  I hoped you might be able to assist me in a current quandary I face.

I am a tenant, I have paid my landlord on time, every month, for the last 5 years.  I have just discovered that he has not been paying his mortgage and my home is very likely to be repossessed in a weeks time.

If this is so, I understand that I could be faced with a 16 day minimum eviction notice. Is this right?

If this is so, I am a single mum with a 7 year old son, I couldn’t possibly organise another property in 16 days. My fear would be “squatting” until I did.  However, would I still be classed as a tenant?  Any light you can shed on this would be truly helpful.

Many thanks,

Melanie


Letting Agent needs urgent advice – please help Landlord News, Landlords Stories, Latest Articles, Lettings & Management, Property Investment News, Property News

Readers QuestionsHello, I am a regular reader of Property118 and very much enjoy the information provided. I have come across a situation and was wondering if any of your experts would be willing to offer some advice please?

One of my landlords has a portfolio BTL with a major buy-to-let mortgage lender based in Newcastle and publically owned (you know which one I mean!). They carried out a valuation of the properties earlier this year and down valued them by about 35%. They are now claiming that the loan is in default because the LTV is not sufficient for security purposes (there are no mortgage arrears at present) and have appointed LPA receivers to manage the portfolio as of 30th October. Continue reading Letting Agent needs urgent advice – please help


Tenants in severe arrears tops 100,000 Buy to Let News, Cautionary Tales, Landlord News, Latest Articles, Lettings & Management, Property News

The number of tenants in severe arrears has risen to a massive 100,400 as rents continue to rise while the economy and jobs falter. The latest figure is 24% higher than the same period last year.

According to the Tenant Arrears Tracker by Templeton LPA, part of LSL Property Services, the first quarter of 2012 had 7,000 fewer tenants in arrears of two months or more than the quarter just gone. While the amount of tenants in severe arrears has risen, the general level of tenant arrears has dropped as 1% more rent was paid on time than the previous month. By the end of April, 9.9% of rent was paid late, with 8.9% of all rent unpaid or late by the end of May. Continue reading Tenants in severe arrears tops 100,000


‘Buoyant’ buy to let lending sinks by 5%, lenders report Buy to Let News, Latest Articles, Mortgage News, Property Investment News

Buy to let borrowing was down 5% in the first three months of the year after a barnstorming end to 2011.

In figures that revealed buy to let is treading water rather than buoyant, new landlord loans totaled £3.7 billion, according to the latest official figures from bank and building society trade body the Council of Mortgage Lenders (CML). Continue reading ‘Buoyant’ buy to let lending sinks by 5%, lenders report


Buy to let shines as mortgage lending slumps to 40 year low Buy to Let News, Latest Articles, Property Market News

Buy to let lending was the only bright point in a year when mortgage lending slumped to the lowest levels for almost 40 years, according to the Council of Mortgage Lenders (CML).

Landlord loans were up 40% in the year with advances of £14.1 billion against £10 billion a year earlier, says the CML annual report for 2011. Continue reading Buy to let shines as mortgage lending slumps to 40 year low


A serious new blow to mortgage borrowers Guest Columns, Mortgage News

I read with interest an article in the Daily Mail this week based on an announcement by Santander that they are radically over-hauling their policy on interest only mortgages. Now you can’t get an interest only mortgage from Santander unless you have 50% deposit to put down.

Business as usual, they can run things as they see fit.

For those of you that may not know, interest only mortgages (monthly payments of interest but no capital) have soared over the past few years as people gambled on property price increases covering the outstanding capital by the time the mortgage finished or as cheaper monthly mortgages underpinned by a known future pension or inheritance payout. Continue reading A serious new blow to mortgage borrowers


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