Northern crock

getreal_3

thats a good idea, i mean the mortgage fixed rate does not end until 1st oct, whats the chance nr svr going down? I feel like were being pressured into taking his halifax deal, like if we do not hurry then we will be in a sticky situation.

At the end of the day we could sell the house in 4 weeks, 4 months or worst case senerio over a year! but to be tied to this house feels like a death sentence lol

Cazza

If the deal doesn't run out 'til October then sit tight and have another think about things in September; I think there's a 50/50 chance of NR dropping their SVR, it does depend what happens with the BofE rate, but going by the number of emails I've had over the past couple of weeks, NR do seem to be becoming more active in the market place.

Call your broker, tell him to put you back in the diary for early October and see what's going on then.

Good luck with the sale!

jamesd

getreal, you're being steamrollered. Walk away.

If you sell in four weeks, four months or a year you'll lose money with this proposed mortgage deal.

I see no possibility at all that it is in your best interests to take this deal unless you find that you can't sell your house at all and keep the deal for more than a year after your current deal runs out.

What you can do is start saving money to pay a few months at Northern Rock SVR if you haven't sold by the time the current deal ends.

The Northern Rock SVR probably won't fall but it's still going to be cheaper than taking the new deal and then having to pay 3% of your whole mortgage in fees when you sell. That's an avoidable 6,000 that you're being set up to pay when you sell.

If you haven't done it already, best to give Northern Rock a call and ask them what the new cost will be. If it's more than you can comfortably pay ask them about switching to interest only if you're not already on that. That will reduce the monthly payments again until you sell. You could also ask about repayment holidays if necessary. Whatever it takes so that you can carry on without risking losing that 6,000.

JimmyTheWig

Agree with jamesd and the others (inc. yourself).
A mortgage with a redemption penalty would be a terrible decission.

Tell your advisor / friend to read this thread if you don't feel comftable explaining it yourself.

Cazza's figures show that you can afford to stay with Northern Rock. If that's the cheapest then do that.
If your friend can find you a mortgage that would be cheaper than NR if you redeem in six months time then you could go with it. But I'm not sire he'll find one.

jamesd

The desire for a fixed rate is what is going to make it impossible to beat staying on Northern Rock's SVR. There's no realistic chance of rates rising to a high enough level before next year to make it sensible to take the offered deal and pay the penalty to leave it.

Finding a no or low fee tracker or discount deal with no penalty that is cheaper than Northern Rock's SVR might be doable. Doing that would be reasonable, with a start date after the current deal ends.

getreal_3

Your comments have been sooo helpful. Thank you everyone. So spoke to an independant well known broker, they have basically said that the mortgage ofered by our FA is the best and almost only deal we will get. Okay, hats ine at least my FA is not completely wrong however I am still unhappy at his suggestion to go on a fixed for 3 years so I am going to take yr advice and stay on NR SVR. One question I do have is that our FA is saying lets justs get a mortgage in prinicple from halifax to fall back on come octber.. but again I am not sure I want to do this as will this hinder us if come novembr say we find a deal that is not fixed but he has already got offer from halifax?

so you guys reckon it will be £2400? Were paying £1170 now so we should be okay... any way of getting it down at all ie over payments (not that I will have any spare cash I dont think lol

getreal_3

oops sorry my mistake should say £1400 x

minimike2

If you want to remortgage to a no tie-in deal you could look at Woolwicih lifetime tracker at Base +1.59 - Should be cheaper than staying on Rock SVR - even with paying exit fees, unless you move really quickly. Plus its got no arrangement fee.