Uproar as Mortgage Express spokesman reveals their Exit Strategies

Uproar as Mortgage Express spokesman reveals their Exit Strategies

7:20 AM, 19th May 2011, About 11 years ago 25

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Mortgage Express logoA spokesman for Mortgage Express revealed their exit strategies at the Northern Property Tribes last night which was met with uproar both on and off-line.

Apparently, if you sell a property that’s mortgaged to them, Mortgage Express have the right to call in all of your other loans.  The details of how they can insist on this are apparently in the small print of their buy to let lending terms and conditions.   It was also intimated by the Mortgage Express spokesman that the bank is retaining the entire proceeds of sale where a property is sold.  Questions have been raised by landlords over the legality of this practice and terms and conditions are being poured over by landlords and their legal advisers all over the country.

Several landlords have already confirmed that they have put off plans for selling one or more of their portfolio as a result of this revelation so it seems that Mortgage Express plans may well backfire on them.

The spokesman for Mortgage Express did go on to say that they have the ability to be reasonable and flexible but by then the angry mob to which he was presenting were in no mood for further debate.

The point regarding CGT on sales was made and was apparently met with a very woolly response.  If a property had increased in value but MX were planning to retain all sale proceeds to reduce other loans how would the landlord raise the funds to pay the CGT bill.  The MX spokeperson suggested that MX might release the funds to facilitate the tax payment which would be at some point in the future but the property investors in the room were having none of it.  Several had already had their fingers burned on the Mortgae Express Choices plan which encourages over-payments with flexibility to access the funds over-paid at a later stage.  The concept is to reduce interest payments which outweigh the interest which would be received if the money was deposited elsewhere.  Property118.com reported on this scheme and the complaints received from landlords back on 27th October 2010.  Read the article here.

What do you think of the exit strategies of Mortgage Express?  Are they following the FSA guidelines of “Treating Customers Fairly” in your opinion?



Comments

by Mark Alexander

19:20 PM, 15th January 2013, About 9 years ago

Sorry Dave, I don't know for sure but I suspect they can.

by

19:08 PM, 19th January 2013, About 9 years ago

Hi everyone.

I recently went 2 months in arrears with my MX mortgages, was told I have breached conditions and they want the full £5m otherwise they can take ownership and force sale. I have since paid all arrears,proposed a business plan and agreed to pay the mortgages off earlier than was previously required yet they still prefer to take the houses. I have over 200 houses, with around 40 with MX. Could I place charges on all my other properties to stop them accessing any future equity.

Any help would be greatly appreciated.

I will happily join a group litigation if we feel there is a way forward. When will the FSA start regulating B2L.

Paul, at the risk of sounding like an idiot, what does PPR stand for?

THanks for the help in advance.

Ross

by Mark Alexander

20:02 PM, 19th January 2013, About 9 years ago

Hi Ross

I strongly recommend you to speak to Glenn Ackroyd at National Property Group. I have alerted him to this thread.

by Allan Smith

17:59 PM, 2nd May 2014, About 8 years ago

Yes Christ, I am in the process of contacting panorama and the national press re these lunatics ! Under the watch of Cameron/Osbourne ! Who are spouting out shite about helping businesses ! When what they are actually doing is putting landlords out of business and tenants out of homes ! To many comments on here re what we should do .. LETS DO IT !!!! UP THE REVOLUTION !!!!

by Allan Smith

18:10 PM, 2nd May 2014, About 8 years ago

Yea Ian, you obviously work for this outfit then ?


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