Northern Rock Existing Customers

DanBarrett

Hi,

I have a fixed rate, Interest Only, with NR, which will run out in 12 months from now - I will not be able to remorgage as my LTV is way too high. (over 100% thanks for recent house price falls)

Luckly, I can afford the current SVR payments (just).

Do any of you guys think that NR may start to offer existing customers deals again, in the coming months/years?

Wutang_2

I do not think they will....and some people may think they will....its a little bit too speculative a question I think!! Just overpay and save as much as you can afford to..

beecher

Can't see NR ever offering deals to people who are in negative equity - you'd be likely to go onto the SVR no matter which bank you were with. Do you have a plan for paying the capital off?

Dan:_4

beecher wrote: »

Can't see NR ever offering deals to people who are in negative equity - you'd be likely to go onto the SVR no matter which bank you were with. Do you have a plan for paying the capital off?

Negative Equity don't matter if your already with the bank.

Dan:_4

Im sure NR will offer existing customers deals again at some point, it is still a business at the end of the day - when they have payed back most the government loan most likely, so maybe 2-3 years at a guess?

beecher

Dan: wrote: »

Negative Equity don't matter if your already with the bank.

Not sure what you mean by this - if I was in negative equity, I wouldn't be offered a deal by my mortgage provider - I'd be on their SVR. They recalculate the value of my flat every time my fixed rate comes to an end.

keir1163

we have a deal with NR and it is about to expire. I received a lovely letter telling me to basically go elsewhere we donnt want you............we have only a 60% morgage yet they donnt want us!
i asked NR about keeping us and was told that 'they had to pay the bank or england asap so we donnt wanr old customers!.............however if i was a new customer i would be offerd a really good deal.!

so i am not wanted.......yet i now have to pay back my help with costs and early redemption fees!
I donnt see that they can do that as they are not offering me a new deal, i want to stay, but if i do i have to go on the standard variable rate.

any advice anyone?I see this as very unfair

beecher

keir1163, You shouldn't have to pay early redemption charges as long as your new deal doesn't start until your existing one expires. There's no getting away from your help with costs though, unless it works out cheaper to stay on the SVR with NR until it expires. Work out which option would cost you less.

Dan:_4

beecher wrote: »

Not sure what you mean by this - if I was in negative equity, I wouldn't be offered a deal by my mortgage provider - I'd be on their SVR. They recalculate the value of my flat every time my fixed rate comes to an end.

Yes, sorry beecher, I've a bad hangover this morning. Ignore me.

Dan_1976

They will, give it a few months or less. They are now after new business so existing will follow.

sdooley

The reason NR wants rid of its existing customers is it sold the cashflow from many of their mortgages into its securitisation vehicle. It therefore does not receive the benefit of the income from these mortgages but carries the risk of them going sour. Unless of course it can persuade people to go to another bank.

NR has to write a certain level of new business to justify keeping its branch staff in work. With luck deposits will grow over time such that the decline can stop. It will be a much smaller bank by then but hopefully some jobs can be kept.

The SVR is not so ridiculous compared to the market, especially considering for people on Together mortgages the SVR is considerably lower than the unsecured element would be if borrowed on the open market.