Mortgage Express svr

nickm6

I found this article regarding Mortgage Express mortgages, I've just had two MX mortgages come to an end and was wondering what to do as I expected their svr to go through the roof in a similar fashion to NR, looks as if that will not happen.

Is there any way MX can try and sneak up their svr? I'm not getting too excited about option ii in the article just yet!

Interested in anyones take on this

Tuesday, September 30th, 2008
There could be a silver lining in the crisis at Mortgage Express (MX) for its mortgage customers. HM Governement will now attempt to run down the Mortgage Express mortgage book which in effect means that they will want existing MX customers to remortgage away to other lenders.
However they will be unable to adopt the approach they undertook with Northern Rock whereby they simply made the Standard Variable Rate (SVR) so unattractive that people were compelled to look elsewhere. The problem at MX is that their SVR is contractually linked at a set margin above Bank of England Base Rate on all their mortgages and therefore their hands are tied when it comes to the setting of rates.
So what are they to do?
They will be left with the following courses of action I would guess;
i) Abolish all early repayment penalties on existing contracts
ii) Incentivize existing borrowers to leave by taking a reduced sum in full and final settlement. This has been a model used by another specialist lender called Edeus
For certain MX buy to let mortgage customers, an unexpected windfall may be around the corner!

therivierakid

Where was this article published?

If ME's SVR really is inextricably linked to BoE BR (which is likely to fall again over the coming months) then there could be a very nice silver lining to all this...