what happens if my mortgage company go bust?

lisasdiary

Hi our mortgage is with Mortage Express BRADFORD AND BINGLEY I here that they are in trouble what would happen to us if they go bust?
Thanks Lisa

bigbloke45

Someone else will take on your loan, you would not have to repay.

You would just have to keep an eye on the new lender's interest rates.

Sleep easy!

Best wishes.

IT_nerd

A lot of people asking this recently. All hoping for the fight club ending?
Imagine if your debt accidently got wiped. How happy would you be haha.

0james0

You would be mortgage free and own the house outright! ..... you and I wish!

A bigger fish would come along and buy their mortgage book. All it would mean is that the profit they make from you goes into someone elses pocket. You would keep the same rate etc as that was part of the contract you signed and the new company is taking on.

loofer

I suspect a bank would go into administration/recievership first, but as a debtor, you will still have to carry on paying your mortgage.

If only the bank just collapsed and dissappeared (like any other businesses) there would be no existing business/entity to pay.

bigbloke45

0james0 wrote: »

You would be mortgage free and own the house outright! ..... you and I wish!

A bigger fish would come along and buy their mortgage book. All it would mean is that the profit they make from you goes into someone elses pocket. You would keep the same rate etc as that was part of the contract you signed and the new company is taking on.

This doesn't really help!

All lenders need to make a profit, and that is after they've paid out fees to mortgage "advisors".

If your lender goes bust someone else will take on your loan. The point is, will they increase your interest rate? This depends upon the terms of your loan. I would be surprised if there weren't a clause somewhere allowing an increase.

But I believe the main point is, don't lose sleep over something that may never happen. If you could get a pound for every time you worried about your finances it would be great; can you? So, don't worry, it won't change anything. Been there, done that!

Best of luck!

0james0

bigbloke45 wrote: »

This doesn't really help!

All lenders need to make a profit, and that is after they've paid out fees to mortgage "advisors".

If your lender goes bust someone else will take on your loan. The point is, will they increase your interest rate? This depends upon the terms of your loan. I would be surprised if there weren't a clause somewhere allowing an increase.

But I believe the main point is, don't lose sleep over something that may never happen. If you could get a pound for every time you worried about your finances it would be great; can you? So, don't worry, it won't change anything. Been there, done that!

Best of luck!

How does that not help?

If a mortgage company sells it's mortgage book your rate would be the same until the end of the special period. You have signed a binding contract where they have to honour the rate. If they change the rate you could just leave as they have broken the contract. Unless like you say there is something in the small print but things have to be so transparent now a days, it wouldn't wash with the FSA.

Take lenders like GMAC as an example, their business was to do mortgages and then sell them on to other companies after. Didn't work out too well for them mind.

Us so called "advisors" are needed more than ever in a market like this. Finding the mortgage is the easy bit, seeing it through to completion is where the real hard work comes in. Ask any mortgage broker and they will agree.

You have obviously had a bad experience before from a bad broker.

Noz

0james0, please take heed:

http://forums.moneysavingexpert.com/showpost.html?p=14398387&postcount=21