Mortgage Express and LPA problems

[Markpc007]

Please help!!!

I have two properties in my name. One was my personal property that I used to live in and now let, the other a buy to let with joint owners, both financed with Mortgage Express .

Mortgage Express were offering no penalties for early redemption when I spoke with them in early January so I decided to sell my personal "buy to let" property and reinvest the money.

Tuesday 20th November 2012 was the completion date for selling my personal property. Three hours before I was due to complete I received an Email from my Solicitor with a letter attached from Mortgage Express sent to them on 24th September. The Email said there was no balance to pay into my account and to refer to the letter. This letter I had never seen before. It was titled "Right to Consolidate". The letter stated that Mortgage Express would not apply their "Right to Consolidate" but went on to say that they require all sale proceeds of the property to go to them of which they would put reduce the balance of the mortgage of the second property that I joint own with three other people.

 

So three hours before completion that this nice lump sum that I thought was coming to me would be taken away.

Over the next two days I was seeking advice, Emailing my Solicitor, faxing Mortgage Express, phoning them, which was very hard getting through to the right person, but to no avail and then be told they were looking to reduce the loan to value on the other property. So basically they were applying their "Right to Consolidate" but in a roundabout way.

 

All the other examples I have read of this is where landlords etc are in arrears. None of these accounts are in arrears and all have been managed impeccably. I thought that the "Right to Consolidate" was only if there was an outstanding debt?

I mentioned this to Mortgage Express and they answered by saying the fact that the other property still has a mortgage and they want to reduce the loan to value counts as an outstanding debt in their terms and conditions.

With four joint owners on the other property it is going to make things very tricky.

Are Mortgage within their rights of their terms and conditions to do this on an up to date account?

Can anyone please help???

Mark

[honeybee13]

Hello there.

 

I'm sorry you haven't had any replies yet. I'll move this to the mortgages forum to see if anyone there has advice for you.

 

My best, HB

[diddled]

Sorry I dont know the answer, the only thing I can think of is what does the contract say re loan to value

[stevethebroker]

markpc007... sorry mate, there is nothing you can do. MX have been doing all sorts of stuff to borrowers for the best part of the last 4 years and nobody would take notice. I had a friend who lost 34 properties in one hit but noone cared because it was him and not anyone of us. Last year another friend lost 27 properties die to consolidation! I have 50 plus properties and I am also under their new terms with over payments. I was screaming at the top pf my voice last year when I asked for a group of victims to join forces and make small escrow payments into a law firm to start a class action against UKAr / MX. Surprise, surprise the momentum died. Large institutions will keep up this kind of bullying tactics on consumers because they know that we are not united. It's a case of no one cares for the sick until they have that illness. You have just become another statistic. You cannot even sue the broker for selling you that mortgage because buy to lets are unregulated! My advise is to work harder, save money and do not trust banks.

[rippedofflandlord]

My case is similar in some respects. In 2012, I had to go into an IVA as I was unable to pay some of my personal creditors due to a Company going bankrupt owing me a large amount of money. At the time I had a portfolio of 30 properties which were not and never had been in arrears. I advised all the mortgagees of the properties that my only solution was to go into an IVA regarding my personal debts and that the mortgages would be continued to be paid.

 

 

Within 3 weeks of the IVA being completed, Mortgage Express called in the mortgage loans on 15 of the properties I held with them and a week later (even after I had paid all of the mortgage payments for that month on the due date) they appointed LPA Receivers.

 

 

The LPA Receivers wrote to my tenants and even told those tenants that queried their requests, that this was because I was 2 or more months in arrears with my mortgage payments - which was totally untrue! Within the first month of their appointment, I lost 9 of the 15 tenants and those properties were then sold at ridiculously low prices. There are just 3 properties remaining which are tenanted.

 

 

Mortgage Express have confirmed that had I not gone into an IVA, they would not have been able to appoint LPAR and that it was their opportunity to reduce their mortgage book by 15 properties in one go.

 

 

The most disappointing aspect in all of this is that my partner who was also on the mortgages but not involved in the IVA, has now had her credit rating destroyed due to the LPAR paying the rent from the tenants at their own pace and not on the due mortgage date. My partner had a perfect credit rating prior to the LPAR being involved and we have begged them to change the late payments and defaults on her file as she was not responsible for these late/non payments following receivership but they say that it is not their fault as they are not responsible for the actions of the LPAR.

 

 

Not only have we lost £1,500,000 in the properties that were repossessed but an income of £11,000 per month. My partner cannot get a small car loan to replace her 13 year old car which has finally given up and without a car she will lose her job.

 

 

The remaining properties with other lenders are all on a high interest rates and cannot be re-mortgaged due to our credit ratings. They have all been managed impecably with mortgage payments being made on time each month.

 

 

Is there any advice available regarding this situation?