Mortgage Express Nationalisation

cccs1986

Received a letter from Mortgage Express explaining that since nationalisation they intend to wind up their mortgage business. They are encouraging all their customers on BTL mortgages to go elsewhere for a better deal.

The thing is, there's no way at the moment that you can find a better deal than 2.25% on their standard variable rate. So although noone can guarantee what direction mortgage rates will go, I would rather not move my mortgage.

Does anyone have any details of deadlines for M E customers to move? Is it a few months, a few years? I'd rather stay where I am for a year or so and then sell up. What if you refuse to redeem the mortgage?

The only incentive they are offering to move is to cancel early redemption charges, which is nice if you are locked into an early redemption period,which I am not!

Thanks in advance

property.advert

I suppose legally you would have to refer to the terms of the terms of your mortgage. Going back to university and law days we did cover this and I am not sure that if you have say a 25 year mortgage and are all up to date with your repayments, then they cannot do much about it.

Thinking through it logically, if they could force you to redeem your mortgage and you could not get another mortgage, they would have to take your house from you. They could probably jack the rates up to 25% if not limited in the original contract but even then you may have some contractual or statutory protection.

If they wanted me to move my mortgage and I didn't want to, then I'd want compensation.

dunstonh

ME are encouraging people to move but they are not forcing it. You will be able to go the whole term if you wish. However, they will not offer any deals again.

A lot of ME's book is poor quality lending so its cheaper for them to waive the ERC and get rid of it rather than hold on to it.

jamesd

Write to ME saying that you understand their business desire to reduce the size of their mortgage loan book but there are no better deals available and you'd be happy to consider moving if they made an offer that would make it profitable for you to move.

It's simply a business mortgage and there's no harm in inviting them to consider making you an offer if they want to reduce their borrowing by getting rid of the loan to you. I doubt that they will make a proposal immediately, first they would want to see how many of those who have ERCs take the opportunity to move. Even after that they may decide just to let the mortgage continue rather than doing anything about it.

The worst they will do is ignore it or say no. No harm in letting them know you'll consider offers, though.