B&B - what next ?

kronas

hi all, what happens to a persons' mortgage when a company is nationalised ? is it just a case of you continue to pay your mortgage as usual and at the end of it take ownership of your house ?

poppy10_2

If you have a mortgage you won't notice any changes - just carry on paying as normal, there won't be any difference until/unless you want to remortgage.

JSF

OK - so you carry on paying - to who? and just how easy it is to remortgage to a better rate. I suspect the B&B owners wont offer incentives to existing borrowers to keep them even if we have paid back a lot of the mortgage already?

Dan_1976

You dont have to do anything. You will pay B&B as normal. Even if the Spainish mob take over you dont have to do anything.

Funny, its Spain us and Germany that will have these problems and a spainish bank are sniffing around B&B and took over A&L!

I imagine that they will call B&B Abbey if its them, that will mean better deal I imagine. However they may stop offering deals under a national deal!

redleg

As someone who has a mortgage with B&B I admit I've been worried for the past couple of days. All the news coverage seems to have concentrated on savers and taxpayers with very little mention of mortgages except for the talk about 'toxic' mortgages. Having always paid on time and never been in arrears I'm assuming I have one of the good mortgages so trying to find out what might happen or what I should do has been difficult to say the least.

The B&B website has now put up a Q&A page...so now the government has made it's announcement can anyone confirm that what B&B are advising is correct and sitting tight is the right thing to do???

http://www.bradford-bingley.co.uk/announcement.asp

Cheers in advance

dunstonh

As someone who has a mortgage with B&B I admit I've been worried for the past couple of days.

Why?

All the news coverage seems to have concentrated on savers and taxpayers with very little mention of mortgages except for the talk about 'toxic' mortgages.

Borrowers have little to be concerned with. There is no need to focus on them as nothing is different.

Having always paid on time and never been in arrears I'm assuming I have one of the good mortgages so trying to find out what might happen or what I should do has been difficult to say the least

The whole mortgage book is being nationalised and is expected to be transferred to the bank of toxic debt (Nothern rock) in the future. However, it doesnt matter as you still pay the mortgage as per normal.

JMitchell_2

redleg wrote: »

As someone who has a mortgage with B&B I admit I've been worried for the past couple of days.

dunstonh wrote: »

Why?

Is that a genuine question or are you surprised that people are worrying?

My wife and I have a mortgage with Bradford & Bingley and, as redleg mentioned, there's been no mention in the mainstream media of the affects for mortgage holders other than that the mortgage book could be, and subsequently have been, nationalised.

There is a question on the page redleg linked to:

Will my mortgage rate be hiked up now the business does not need to be competitive?
Your mortgage will continue on its current terms and conditions.

This is the kind of question people are worrying about as terms and conditions of mortgages are hard enough to understand never mind knowing what affect the nationalisation of the mortgage book will have.

My wife has the somewhat irrational fear that we'll lose the house even though we've made overpayments in the past and have options of payment holidays in our mortgage deal and have never missed a payment but I doubt she's alone in having such fears.

I want to know what my options are in terms of over payments going forward as it was never straight forward to get them done before.

As they say, it'll all come out in the wash.

bainy

People have every right to be worried as we are because we also have a mortgage with B&B and to make things worse our 5 year fixed rate finishes in December.So myself and my wife are both worried.I am also a shareholder. Yes the fat cats are to blame but Brown broke Britain his incompetence whilst chancellor and now as PM has a big bearing on what were reaping just now.
As already mentioned there is very little information for mortgage holders, shareholders etc in the mainstream but plenty for savers. What more information has this inept government been keeping from us.

The shares have been suspended from trading and have effectively been confiscated by the Government as at today's date. Shareholders should expect very little, if anything, in compensation. This "fire sale" of the company's assets is clearly disadvantageous to shareholders and is allegedly justified based on a breach of the FSA rules for deposit takers, but no details of those breaches have been provided.

taken from: -


http://www.uksa.org.uk/BradfordBingley.htm

When it comes to the next General Election Remember this inept PM and government Broke Britain, they built up a sea of debt and spend the money saved by the previous government for a rainy day, time for a change me thinks!!!!

terrace_boy

I have a 2 year discounted rate mortgage with B&B due to end in December. Am I right in thinking they will not be able to offer me a discounted deal again?

JMitchell_2

terrace_boy wrote: »

I have a 2 year discounted rate mortgage with B&B due to end in December. Am I right in thinking they will not be able to offer me a discounted deal again?

The link redleg posted says they're not offering any new mortgages. I would expect this would apply to your case unfortunately as, although it's not a new mortgage customer, it would be a new mortgage agreement.