Mortgage Express - Too good to be true?

illgetthere

my offer says i go onto the 'variable rate' at the end of my offer. would that be the svr or pvr? it was an ex gmac product..

Husband_of_a_spendaholic

illgetthere wrote: »

my offer says i go onto the 'variable rate' at the end of my offer. would that be the svr or pvr? it was an ex gmac product..

If you haven't taken a preferential rate with ME since they purchased your mortgage, you will go onto the SVR.

It currently stands at 4.84%. (Which is great compared to GMAC's SVR of 5.75%)

peterc2609

My mortgage says mine will revert to

Standard Product Variable Rate, currently 7%!!!!!

That is on the offer letter from last April!

pizzed-monkey

Husband_of_a_spendaholic wrote: »

I work at Bradford & Bingley / MEX and I can advise the following.
When your fixed rate expires, you will go onto the SVR or PVR. Which depends on your product and whether you originally took out the mortgage with MEX, GMAC or Kensington. If you dig out your original mortgage offer it will state what that the reversion rate is. You can change your mortgage back to repayment anytime, just call the contact centre and they should arrange to send you a form to complete.

Hey there,

can you answer this nagging doubt for me then, I phoned them yesterday and they confirmed I can port my mortgage as long as its for the same or less amount. This is fine for us as we plan to move out of an expensive area of London, spend a simular amout on a new house in a cheaper area, and our current house (erm, touch wood) is still worth more than we paid.
So......what Im worreid about is going down this path, getting to the point of porting the mortgage and then Mortgage express backing out and saying they dont want to port (citing bad credit rating or something - thier T&C do leave this open) and saying we have to find a new lender. So using this option to dump more mortages if they can - which is obviously thier plan right now. Would this be a realistic situation?

ricky_south

I have got a letter form mortgage express this morning saying we can leave between 1/feb/09 and 1/june/09 and we won't have to pay the £5000 redemption penalty.

ricky

kazza2

I phoned ME on 0870 6013220 and confirmed the following:

There is going to be an amnesty on lump sum repayments to mortgages still within the fixed rate period. The period of the amnesty is between 1/2/2009 and 30/6/2009 so wait until February

If your mortgage was originally with GMAC payments should be made as follows:

Bank: Cooperative Bank PLC
SC: 080053
Account: 70859171
Ref: <your mortgage account number>

If your mortgage was originally with Mortgage Express payments should be made as follows:

Bank: Natwest
SC: 517019
Account: 80010237
Ref: CAP<your mortgage account number>

samandmillie

Husband_of_a_spendaholic wrote: »

In June, your mortgage will revert to the Standard/Product Variable Rate. (Which will be detailed on your mortgage offer). What the above statement means is that at the end of you deal, there may not be new attractive rates available for you to switch on to. This would mean that you would be paying the variable rate until the end of your term. If your rate ends in June, I would suggest that you call up in March to discuss your options.

Thanks v much for your response. Just to clarify, in June 09 their might not be an attractive rate so I'd be on the variable rate until the end of my mortgage term (23yrs)?

Will I automatically switch onto the variable rate or do you think they might tell me this isn't available to me (if they don't want my mortgage on their books anymore). Assuming interest rates havent gone up by then I guess their VR is a good deal though isn't it? Would they base it on whatever the BOE base rate is at the time plus 2% rather than the one stated on my agreement (as that was from JUN 05, detailed further up in this post).

pizzed-monkey

samandmillie wrote: »

Thanks v much for your response. Just to clarify, in June 09 their might not be an attractive rate so I'd be on the variable rate until the end of my mortgage term (23yrs)?

Will I automatically switch onto the variable rate or do you think they might tell me this isn't available to me (if they don't want my mortgage on their books anymore). Assuming interest rates havent gone up by then I guess their VR is a good deal though isn't it? Would they base it on whatever the BOE base rate is at the time plus 2% rather than the one stated on my agreement (as that was from JUN 05, detailed further up in this post).

Ah, even I can answer that!

They cant just end your mortgage because they fancy it - imagine that, a govenment owned provider causing people to loose thier houses (many people at MEX are self cert, with 90% plus loans I'd guess so would struggle to get anything elsewhere)...but they wont go out of their way to keep you and they will "help" you leave, as they are currently doing.......you will go onto the SVR as in your contract, but it will be whatever their SVR is at the time - read your docs again, it will say something like "at this time" it is....etc.

samandmillie

pizzed-monkey wrote: »

Ah, even I can answer that!

They cant just end your mortgage because they fancy it - imagine that, a govenment owned provider causing people to loose thier houses (many people at MEX are self cert, with 90% plus loans I'd guess so would struggle to get anything elsewhere)...but they wont go out of their way to keep you and they will "help" you leave, as they are currently doing.......you will go onto the SVR as in your contract, but it will be whatever their SVR is at the time - read your docs again, it will say something like "at this time" it is....etc.

Phew! Thanks for your help. I was beginning to have palpitations thinking I'd have to sell my house if they wouldn't let me keep the mortgage with them in June (I doubt I'd get one elsewhere due to the drop in house prices and amount we owe). Thanks again

mummytofour

mickholloway wrote: »

Ring them, I have recently moved (early) onto a new fixed rate BTL at 3.99% no fee's/costs for 2 years with ME my old one was 5.09% also with ME. As they are no longer charging for settling early I was able to move early. Incidently them best deal London and Country could find me was 5.45% with a £2500 fee for moving. Had I not rung ME and checked their variable rate and found out that they could offer me the 3.99% fixed for 2 years it would have cost me approx £4600 extra over the two years (this includes the fees to move). I had paperwork from them within 2 days no hassel.

I would call them and ask.:money:

I am going to give them a call tomorrow and see if they will let me change from my MEX fixed rate to a new fixed rate. My current rate is 6.59! I have a normal mortgage with them fixed until nov, I got the letter today about no exit fees but wont be changing lender.