Mortgage Express

josswallace

I took out a 5 year interest only buy to let mortgage with Mortgage Express with the intention of selling within the 5 year period. Our circumstances have now changed and I need to keep the property for a few more years..................the mortgae is £300,000 on a property worth a conservative £750,000 and the rental income is approx £20,000 per annum.
Mortgae Express have now written to me saying that the term is up and since they have been nationalised they no longer offer mortgages and that I need to repay them within 6 months.
I have no problem with the repayments but I wonder if any one has a view as to how likely it is they would issue court proceedings to force me to sell if they were in regular receipt of the interest payments.

Thrugelmir

josswallace wrote: »

Mortgae Express have now written to me saying that the term is up and since they have been nationalised they no longer offer mortgages and that I need to repay them within 6 months.
I have no problem with the repayments but I wonder if any one has a view as to how likely it is they would issue court proceedings to force me to sell if they were in regular receipt of the interest payments.

The outcome for you could be expensive. Is it worth the risk?

As an investment the yield isn't great and your capital would be better invested elsewhere.

kingstreet

Not sure about the implications of not repaying, TBH.

Have you thought about remortgaging?

With interest at around £15k and rent at £20k you should have a big enough rent gap to get a new deal quite easily, subject to your overall credit situation.

What made you do a five year term? It's interest-only so the monthly payments are the same for one year as they are for fifty.

hillcats

What was the original term of the mortgage? why wasn't it a std 25 yrs?

If so, how can they force you to repay if you agreed a long term deal, what rate does the mortgage change to ?