Mortgage Express introduces ERC waiver
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Mortgage Express is scrapping all early repayment charges from February 1.
Mortgage Express says the early repayment charge waiver will be available until further notice.
In a statement, it says: “Although we anticipate continuing this offer indefinitely, we reserve the right to withdraw this offer in the future. If this happens we will give three months written notice of the end date.”
Early repayment charges will apply until January 31 2010.
Following the decision to take the mortgage assets of Bradford & Bingley Group - including Mortgage Express - into public ownership, Mortgage Express is looking to reduce the size of its mortgage book and is not doing any new lending.
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Readers' comments (5)
David Rounsfell | 5 Jan 2010 1:22 pm
Nice idea from MEX and may work for some people on relatively high fixed rates with a while to go until the end and with a low enough ltv to make a remo workable.
For the rest though the tempatation of a long term follow on rate at between 1.75 and 2% over base its not worth the trade off. Especially if you were at 85% ltv!!
Maybe they will follow other lenders to apply a golden handshake to encourage borrowers to leave?
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Paul Silcox | 5 Jan 2010 1:51 pm
It may work for some people on high fixed rates, but works better for MEX. Positive p/l on fixed rate hedges probably far outweigh ERCs anyway. Or maybe they are desperate to wind down their books as they can see banks flooding the market with repos, as opposed to parking htem in shell companies........
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Anonymous | 6 Jan 2010 11:47 am
it might have something to do with the fact that over 80% of their mortgage book is in negative equity and they need cash now
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Anonymous | 15 Mar 2010 6:26 pm
sounds goods for those wishing to move along.
What if you don't take up the waiver offer and your fixed term is at end. what is the vairable applied?
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Anonymous | 20 Mar 2010 4:15 pm
Re the golden handshake - who has been offering them to encourage borrowers to leave? David R - is this wishful thinking or do you have any basis for this comment? I hope you're right. We are stuck on 7% until 2013 at 85% LTV . . . :(
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