Mortgage Express Winds Down And Waives ERC’s

This is important news folks. Many investors have multiple mortgages with Mortgage Express due to the bridge / remortgage method used for NMD (no money down ) deals. I know investors who have the majority of their portfolios with MX.

Mortgage Express is to waive all early repayment charges (ERCs) as of 1 February 2010

The exemption covers borrowers with both Bradford & Bingley and Mortgage Express deals. All customers whose products carry ERCs -(early redemption charges) including those on all relevant residential, buy to let and lifetime mortgages – will be contacted by the middle of January with news of the waiver.

Mortgage Express is offering the waiver to help customers making a capital repayment on their loan, those who wish to remortgage to a better deal and those who may wish to sell an under performing property. The lender formerly waived ERCs between February and June 2009, to the benefit of many customers.

The latest move comes as part of the nationalised lender’s long-term objective to wind down Mortgage Express. This is another clear sign that lenders are looking to offload their mortgage books in expectation of further deterioration in the market. With most lenders requiring stricter affordability criteria, full status and over 25% equity for the best rates, borrowers will find they have little alternative to go elsewhere. The options remain as stay or sell. The best thing they can do is reduce their SVR ( standard variable rate) for borrowers so fewer people default on their loans.

What are your thoughts on this? Do you have multiple mortgages with MX? Will it help your portfolio in any way? Your comments are appreciated as always.

**UPDATE** Since this blog was written we know that many mortgages were transferred into the governments NRAM scheme. If you are having problems with banks or have lots of mortgages with one company which is causing you problems then we can help. Have a look at our other blog here about why you can’t negotiate your mortgage with NRAM, or check out our commercial loan pages.

Information from: http://www.mortgagesolutions-online.com

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