Kensington now Mortgage Express?

lenny83

We've just received a letter from our lender Kensington to say that there has been a change of ownership for our mortgage account. It has now been transferred to Mortgage Express who will now be responsible for setting interest rates and changes..

Any one got any idea why this has happened? Our mortgage is 4 months old and Mortgage Express declined us when we applied with them (their interest rates were also a lot lower!)

Also a statement came with the letter and I can't understand it.
1/6/08 direct debit 813.75
1/6/08 interest debit 807.37
1/6/08 interest credit 4.68
1/7/08 direct debit 813.75
1/7/08 interest debit 834.22
1/7/08 interest credit 4.83

It's an interest only mortgage (fixed rate)..is it correct that the balance is now more than it started at?

Sorry if that is a stupid question it's our first mortgage..:rolleyes:

silvercar

Lenders often sell blocks of mortgages to other lenders, nothing really to be worried about. All terms in your original mortgage offer will be followed, you just have a different lender.

lenny83

Thank you:o

c0c0nuts

Hi Lenny,
Kensington did exactly the same to us about 6 months after we took out our mortgage (about 1 1/2 years ago)
They too sold our mortgage to Mortgage Express which is the specialist lending arm of Bradford and Bingley.
I must say that I find Mortgage Express staff a lot nicer than Kensington and were far more helpful when we came to renew our rate.
From the literature we recieved when the mortgage changed hands-the admin charges are cheaper too-but those may have altered since like everything else

rhr76

Hello!

Kensington also sold our motgage to Mortgage Express just over 2 years ago. Our fixed rate ends in August 2009 after which I think we will have to revert to the SVR rather than getting a new deal. My question is, having originally taken the mortgage out with Kensington (who base their SVR on Libor) will our rate be their SVR or the Mortgage Express SVR (which is based on the BoE rate (I think?!?!)? If anyone could explain a little about the different between the two rates (Libor and BoE) I would be very grateful! Sorry if I am uninformed or naive about this - I hope someone will be able to help! Many thanks in anticiaption.

unite79

Securitisation - Is the reason as Silvercar has mentioned - This in the main is the reason Bradford and Bingley are in trouble - they were buying all GMAC and Kensington High risk stock, to add to there mortgage book - but this type of loan is not really what can be classified as IDEAL lending for them - backed up by leeny83 - when he mentions that Mortgage Express turned him down....
RH76 - LIBOR is the cost of borrowing between banks - London Inter Bank Offer Rate (I think) - So for Example in simplistic turns, you go to barclays and ask to borrow £100,000 - Barclays then go to Borrow the money which inturn they lend to you - So they will buy £1,000,000 at 4.76% (assumed Libor rate) then sell/lend you the proportion you require for example on a fixed rate at 6% - they have then made a profit of 1.34%
Trouble is the Rate for LIBOR has been rising over the last 12 months, and Moving about like a YoYo as lenders have not been keen to lend to each other - it appears that LIBOR is now reducing.

rhr76

Unite79 - thanks for the Libor explanation.

Does anyone know whether it is the Mortgage Express SVR we will revert to when our fixed rate ends or the SVR attached to our original Kensington agreement? I'm guessing (unfortnuately) it will be the latter?

Thanks for your thoughts.