Tracker with mortgage express coming to an end, what to do?

kayke_dee

Hey guys sorry if this is a bit of a no brainer, but im still learning lol.
I'm doing this without my documents and off what i remember, so please bare with me.

Me and my partner took out our mortgage 3 years ago with Mortgage express. It was one of the very last 100% mortgages to go through and in the contract we were tied into the company for 3 years (or 5 i cant really remember), or we would face a penalty for switching. Well It would have been April just gone when the 3 years were up, we were thinking about fixing our rate.

this is taken from their website
Following nationalisation and the transfer of the Bradford & Bingley savings business and retail branch network, we are permanently closed to new business as we no longer have the ability to offer new mortgages or further loans.

Whilst your current mortgage may be affordable, if interest rates rise in the future we will not be able to offer you a more competitive deal, so you could find that you are paying a higher interest rate and monthly payment than is available elsewhere.


Do we fix our mortgage now (if the tracker is up) with mortgage express? then switch?
or do we switch to another company first, and will we be likely to get the same rate?

Also if the time is not up on our contract, and we are still tied into mortgage express, do you think they will be able to charge us the penalty for switching even though it would be through no fault of our own?

sorry if these are dumb ??? i don't really know much about this
hope someone can help:o

thanks

Thrugelmir

First question are you in negative equity?

Hopejack

As you bought on an 100% mortgage 3 years ago (peak of market), I'd expect you to be in negative equity possibly, if not you'll still have a very high LTV and as a result it will be quite difficult to find a lender on those terms. There are a few 95% LTV mortgages about but not many at all, most really are 90% max.

How much was your mortgage for? Do you have a realistic valuation of your home - what have houses in your area sold for recently - not asking prices, sold prices? Was it a newbuild? How much do you owe on your mortgage now (you might need to call them for an updated figure)?

beecher2

First of all you need to find out if your fixed rate comes to an end this year, or in 2 years' time. Phone up and find out or dig out your mortgage offer. If you're in a 5 year deal you'll still be liable for any ERC, but it sounds like you're likely to be stuck with them anyway due to probable negative equity.

I take it from what you've posted that Mortgage Express aren't offering new deals, and that you'll be stuck on the SVR - again, check your mortgage offer to see if that's the case. You need to make plans for what you're going to do when rates go up