Mortgage express: A tougher line

[Petronius Walker]

I have seven buy-to-let mortgages with Mortgage Express (ME) and reached a temporary agreement with them to deal with arrears. After a successful 12 months, they suggested capitalising the arrears. They then allocated a 'relationship manager' to visit me. I thought that, as with other other lenders who have sent counsellors in the past, this would prove positive for both sides. In the event, they said they have realised that I haven't been paying service charge on the flats and that they have had to meet this obligation, which is true. Instead of paying service charge, we have been refurbishing the flats. They have now written with certain demands, including that all the rental income be spent on the mortgages and the arrears so that the arrears are settled within 12 months.

 

I am proposing to agree, provided that we first deduct from the income an amount to cover the service charge and that I pay this as I should to the management company. Hopefully, ME will agree. But what I would welcome advice on is their threat to repossess the properties unless I also agree to new terms. Needless to say, those terms would grant them extensive new freedoms to repossess in the future.

 

ME are correct to say they are now merely enforcing their existing rights, because they need to reduce their loan book by selling off 'good' mortgages. This includes getting my own into good order ready for sale to another lender. But it sounds like duress to insist on new terms as part of a deal on current arrears that have been handled differently, and successfully, to date. One of the properties is subject to a suspended repossession order at a low repayment amount suggesting that, if this went to court, I may be able to maintain current rates of repayment on the others. After all, I've stuck to the 12 month agreement for the 12 months. Any thoughts would be welcome on whether I should contest the new terms even if I make the payments that they want. I do accept that these funds are owed to them.

[rebel11]

Hi pet

 

Welcome to CAG

 

The guys will be happy to advise as soon as they are available.

[jutolo]

Pertronas Walker, how has it gone with MX, did you sign up, if you did please do let me hear from you. it is not too late to do something about it. you can send me a PM if you wish. Good Luck

[Bullhunter]

Be very careful - I know from first hand experience that they are desparatelky trying to wind up the 'business' inside the initial 10 years - 2020.

 

They will insist on new T&Cs which will limit your mortgage term to 8 years - I am guessing yyour credit will be shot by now so no chance of remortgaging even in 8 years time.

 

Makes you smile that the state saved their sorry asses when they over extended themselves and now kicking people like you who have worked with them for months to get things straight.