Mortgage Express Permission To Let Refusal

trickdog

Hi,

I currently have a 10% interest only mortgage with mortgage express taken out in 2005.

My plan was to remortgage once the redemption period expired, but at that point in 2008 (and since) its become impossible in the current climate.

I moved away for work from my house in 2008 and for each year, mortgage express gave me permission to let the house out on an annual basis.

Then in early 2013 for the first time they removed this permission, forcing me to have an empty house losing money. I have put the house on the market but its not attracting interest or serious offers.

I was wondering whether Mortgage Express are allowed to simply stop providing permission like this and put me in a situation where I cant afford the house. A past mortgage advisor mentioned something about this being a route for complaint.

If anyone has any advice or suggestions on ways I can tackle this problem, I would be grateful. A remortgage is out of the question as I cant afford this with the current 25% deposit required. What happens if I let out the house without their permission?

Thanks

ACG

Its consent to let (consent being the main word) they dont have to offer it.

How much is the house worth?
How much is the mortgage balance?

If you let it without their permission they could recall the loan, your buildings insurance may not be valid and it could cause a lot of issues down the line.

John1993_2

trickdog wrote: »

I have put the house on the market but its not attracting interest or serious offers.

Is it a particularly unusual house (i.e. nothing exists similar to it in the area)? If not, then a lack of interest or offers generally suggests that you are asking too much money for it, or that somme work needs to be done to make it saleable.

I know that sellers hope that buyers will see beyond the little bits and pieces that need to be done, but many buyers don't, so if it's in need of a bit of TLC (new carpets, painted, weeds removed, lawns cut etc) then this could be leading people to take a similar property up the road instead.

If it's unique, then it's a bit harder, as you just can't tell when someone who'll fall in love with it, and who has the budget, will happen to notice it. You can have it on at the "right" price for years while more generic houses change hand several times. The only choice in this case is to offer it at a discount, or wait.

dunstonh

I was wondering whether Mortgage Express are allowed to simply stop providing permission like this and put me in a situation where I cant afford the house.

They havent stopped anything. You had an annual review where they decided to extend the consent or withdraw it. This time they have chosen to withdraw it.

I suspect they have felt that having given you 5 years to try and sell the property that enough is enough. It isnt an open ended agreement. These consent periods are there to give you time to sell the house. It doesnt take 5 years to sell a house unless you are over pricing it.

A past mortgage advisor mentioned something about this being a route for complaint.

You can complain about whatever you like. Doesn't mean you will always succeed though.

f anyone has any advice or suggestions on ways I can tackle this problem, I would be grateful.

Remortgage to a buy to let mortgage or sell the property at a realistic price. As you cant remortgage then you sell it.

What happens if I let out the house without their permission?

They can start repossession proceedings.

kingstreet

FWIW, Mortgage Express is now effectively a Government Department - UKAR, tasked with recovering as much taxpayer money from the likes of NRAM, Mortgage Express, Bradford & Bingley etc as it can.

Expect it to behave in such a way that it maximises the chances of a borrower leaving to go elsewhere.

happycamel_2

Either lower the sale price or get a BTL mortgage.