Northern Rocks scandalous SVR

stradlinho

Any news on whether NR are going to drop their disgusting and obscene SVR after todays BoE announcement ?????

lisyloo

No, but these people are pretty quick at getting updated.

http://www.thisismoney.co.uk/mortgages/mortgages/article.html?in_article_id=454127&in_page_id=58

stradlinho

The high SVR does not achieve NR's aim of reducing its customer base. Those who can get another mortgage will move as NR's deals (not SVR) are extremely uncompetitive.
Those who cant move (no equity) have to stay and battle with a 7.49% SVR. This will in turn leave many households with no choice but to default losing NR more money !

CRAZY but this is what a Labour Government has done for this country.

Roll on General Election

lisyloo

CRAZY but this is what a Labour Government has done for this country

Of course, yes, the governement are responsible for Northern Rocks business model.

No, I think we should blame Martin :rotfl:

My expectation would be that the rate will come down but I think you are being a little impatient only about 4 hours after the news has broken.

stradlinho

Sorry, I'm a bitter NR customer.

Labour still suck tho

payless

In fairness you could argue for the risk ratio of their svr book ( ie those unable to leave ) 7.49% is not a bad rate... they are still paying 6% on some deposits

lisyloo

My personal opinion is that most of the banks will drop rates.
Given the amount of tax payers money they have had, it would be scandalous if they tried to profiteer from this rather than work with governement to sort out the problems in the economy.
Of course savings rates will drop as well, which is bad for some people.

The predictions I've read are for rates to drop sharply which is welcome news for those struggling with mortgages and increased household bills.

So jsut be a little more patient and keep fingers crossed.

barnaby-bear

stradlinho wrote: »

The high SVR does not achieve NR's aim of reducing its customer base. Those who can get another mortgage will move as NR's deals (not SVR) are extremely uncompetitive.
Those who cant move (no equity) have to stay and battle with a 7.49% SVR. This will in turn leave many households with no choice but to default losing NR more money !

Not really very scandalous - historically 7.49% isn't that bad. Their rates just aren't very competitive and most people can do better elsewhere. The people who can't move elsewhere are those who historically wouldn't have got mortgages and 7.49% is actually not bad given the quality of those who can't move....

Debs12

"people who can't move elsewhere are those who historically wouldn't have got mortgages and 7.49% is actually not bad given the quality of those who can't move...."

I have a 3 year flexi fixed that ends next year. When I got my mortgage, my broker offered me that or same rate with Lloyds TSB Scotland. I took NR. Yes I moved house last year to move beside my new job with a large rise in salary. My LTV then was 82% then so not bad. Never missed a payment on any of my credit including morgage. Not that much other debts - like a buy in 4 years new sofa for the house on 0%.

I am on 5.09%. I am due to go up to 7.49%. I appriacte that is not high at that rates have been 15% at times in the past however that is high compared to the rest of the market. As house prices fall my LTV rate increases. In normal circumstances if that was happening (like if I went with with Lloyds TSB in the first place) this would be fine as just stick with current lender. Current lender in dire straights and wanting me to go elsewhere how?

According to you I am the sort of person that in normal cirumstances would not have got less than 7.49? How the only decision I made was to go with NR instad of elswehere, in 2006. Again my descion...However now all the other banks have had a bail out too. Why should I suffer? Explain how historically I would have been offered 7.49% and above?

I am only in my 5th year of home ownership or I would have a low LTV rate like you oldies...maybe if I didnt orginally have to pay back my student loan.

I am hoping something happens by next summer ...but house prices may fall that much that I will be stuck with the historics in NR & the B&B people.

The only poor descion I made was to go with NR not anything about borrowing too much, borrowing more againsnt my hom or anyting that would make me historically bad risk.

payless

If you are now below 90% LTV then I am surprised you can not get better

If between 90-95% - then consider talking to a broker who will also access non broker deals

If over 95% , then unfortunately the lenders feel the rate justifies the risk

stradlinho

any news ?