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Mortgage Express offering to waive ERC penalty

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payless
payless Posts: 6,957 Forumite
Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
in Mortgages & endowments
Just got this ( from a third party source not the company themselves)
Mortgage Express are no longer able to provide any new lending and may not be able to offer competitive deals in the future. They understand that their customers may wish to reconsider their mortgage arrangements - either by selling a property, moving their mortgage to another lender or paying off some or all of their mortgage.

They also appreciate that those with an Early Repayment Charge (ERC) could be faced with a significant cost if they move their mortgage to another lender or make a capital repayment, which could be a barrier to considering these options.

So they have made the decision to waive the ERCs for customers moving to another lender, selling or repaying some or all of their mortgage between 1st February and 30th June 2009.

Might be useful for some .( those with cash to repay a higher fixed rate ??? or those with circumstances that are attractive to other lenders- although I guess at lot of Mtg Exp clients may not be !!! ) .. but take care to ensure you consider all the other costs involved + remember some Mtg Exp deals had a tracker follow on rate , which in todays market may actually be very competitive.
Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
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Comments

  • andyroyc
    andyroyc Posts: 2 Newbie
    Yes it is true, as a Mortgage Express customer, we received this leaflet yesterday by post. Just not too sure how lucrative this waiver is actually ?

    We bought our first house for £185k in Sept 06 using 100%LTV from Mortgage Express - a fixed rate of 5.64% until 30/09/09. 100% Variable Rate, then applies for the remainder of the term.

    We have never missed any payments and have a good credit score. I am worried if Mortgage Express close down, what would happen once the fixed rate period ends in Sept 09 ? How good is the option to explore to borrow more money, sell the current house and buy a bigger property given the current market conditions ?

    Thanks,
    Andy
  • theosnw
    theosnw Posts: 7 Forumite
    Ive had the leaflet saying that there will be no ERC on any monies paid up form Feb the 1st till June the 30th...

    I have a pretty high rate mortgage due to the fact I was one of the last to get a 100% mortgage and I had some bad credit history.

    Im thinking of doing alot of overtime and paying a substantial sum off this and was wondering if it would be a good idea to plough any savings I have into my mortgage and maybe pull extra shifts in work during this period...

    What are everyone elses views?

    A good time to do overtime or what?
  • Met_Bobby
    Met_Bobby Posts: 70 Forumite
    ! doubt many Mortgage Express customers will be able to move anywhere else before June due to high LTV's and falling valuations.
  • koexelek
    koexelek Posts: 7,847 Forumite
    Met_Bobby wrote: »
    ! doubt many Mortgage Express customers will be able to move anywhere else before June due to high LTV's and falling valuations.

    True,

    As a lot of their stuff was high loan to value buy to lets and self certs, it is now practically unremortgageable
    I am a Mortgage adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • andyroyc
    andyroyc Posts: 2 Newbie
    so does that mean the only option is to go on to SVR and continue unless any one else is ready to port the current mortgage ?

    Any other options that ME customers like us have ?
  • Foggster
    Foggster Posts: 1,023 Forumite
    Met_Bobby wrote: »
    ! doubt many Mortgage Express customers will be able to move anywhere else before June due to high LTV's and falling valuations.

    If this is true. What happens if a customer cant move their mortgage and has come to the end of their locked in period?
  • koexelek
    koexelek Posts: 7,847 Forumite
    andyroyc wrote: »
    so does that mean the only option is to go on to SVR and continue unless any one else is ready to port the current mortgage ?

    Yes.

    The good news is that their SVR is quite competitive though, and is likely to be better than new deals on offer from the sort of lenders who would take the business anyway.
    I am a Mortgage adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • cdafonseca
    cdafonseca Posts: 403 Forumite
    I have this letter too
    loan amount £87.550 05/10/2007
    my mortgage interest rate at the moment is 5.79%
    I have been overpaying by £100 my currently balance stands at around £83000
    I don't see me in get a better deal

    anyone have any light on this as I don't have any money to put upfront as I heard that the banks only lend 60%

    ERC lasts until 31/07/2012
    I am sorry if I made too many mistakes in my writing as English is not my first language:A
  • where2start
    where2start Posts: 171 Forumite
    Part of the Furniture Combo Breaker
    I also just received this letter but from bradford & Bingley and wanted to know if its a good idea to remortgage with another lender now ...thinking Abbey
  • feisty1
    feisty1 Posts: 1,487 Forumite
    where2start wrote: »
    I also just received this letter but from bradford & Bingley and wanted to know if its a good idea to remortgage with another lender now ...thinking Abbey

    have u got 2 threads going?

    why are u thinking of the abbey?

    hope its not because you like the colours
This discussion has been closed.
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