Northern Rock - Complaint??

opinions4u

feisty1 wrote: »

..........are you trying to say ALL NR existing customers are high risk RUBBISH! Many existing customers are low risk & they are being mortgaged out & the high risk (together clients) are being retained........this will increase the rock's risk on defaults, arrears and ultimately bankruptcy..........

Not at all.

But you tend to find that where mortgages are for larger amounts than the property value the risk of loss is higher than a new customer banging in a 10%+ deposit.

Nothing to do with Northern Rock. A fact of mortgage lending

feisty1

believe me i know about mortgage lending..and u r not grasping what i am saying, their new mortgage book is open to clients many who have higher LTV than existing clients who they're mortgaging out.......& by offering nothing with the high risk clients they are increasing the risks of defaults, arrears and ultimately bankruptcy..........

devils_advocate

Sorry, but it was a forseeable risk that

i) Your mortgage provider would not continue with the teaser rate you got, and /or
ii) because some entity offered you a mortgage, other entities might not be so keen to do so, and /or
iii) house prices could go down, as well as up.

You stand a far better chance of getting compensation by suing the government for not teaching you these things in your time at school.

Gorgeous_George

I don't think the OP mentioned suing anybody.

Writing a letter of complaint, maybe to The Times newspaper, would get his point across nicely. Might not make a difference but people should complain if they feel that they have been treated badly.

GG

feisty1

I truly believe customers should get a NR support group action together and fight for justice........BoS clients who were disadvantaged by the SAM are still fighting & their case looks to be getting stronger & stronger as it goes on

opinions4u

feisty1 wrote: »

believe me i know about mortgage lending..and u r not grasping what i am saying, their new mortgage book is open to clients many who have higher LTV than existing clients who they're mortgaging out.......& by offering nothing with the high risk clients they are increasing the risks of defaults, arrears and ultimately bankruptcy..........

The OP states he's in negative equity.

New customers aren't.

Due to an unfortunate set of circumstances the OP is a higher risk than the new customer.

Got it?

Gorgeous_George

opinions4u wrote: »

The OP states he's in negative equity.

New customers aren't.

Due to an unfortunate set of circumstances the OP is a higher risk than the new customer.

Got it?

I've got it. Always had it.

You seem not to have got it.

Yes they (NR, HMG, you and me) can charge the Standard Variable Rate. But that SVR should be fair (not charity but not punitive) especially as NR are, at the very least, JOINTY RESPONSIBLE for the position some people find themselves in (not me by the way). Yes, borrowers did not have to take the together mortgage but it should not have been available at all.

Why is ok for the Government to bail out savers in Icesave etc., while punishing people who were taken in by the muliti million pound 'together mortgage' advertising?

GG

opinions4u

Gorgeous_George wrote: »

I've got it. Always had it.

You seem not to have got it.

Yes they (NR, HMG, you and me) can charge the Standard Variable Rate. But that SVR should be fair (not charity but not punitive) especially as NR are, at the very least, JOINTY RESPONSIBLE for the position some people find themselves in (not me by the way). Yes, borrowers did not have to take the together mortgage but it should not have been available at all.

Why is ok for the Government to bail out savers in Icesave etc., while punishing people who were taken in by the muliti million pound 'together mortgage' advertising?

GG

I think my post at 6.47pm got your point:

"HM Government should make a commitment to hold the NR SVR at the average rate charged by Halifax, Abbey and Barclays (for example) or alternatively BofE plus 2%.

In fact, in this age of necessary state interference, I'd say this is an absolute necessity to ensure a degree of fairness for customers."

Gorgeous_George

Abbey .......... 7.09%
Britannia ....... 6.8%
Lloyds TSB .....7.0%
Nationwide .....6.49%
Nat West .......7.19%
Northern Rock 7.49%

Surely NR can trim that SVR.

GG

Ian_Griffiths_Halifax

What gets me is that Northern Rock Together Mortgage customers are now seen as 'High Risk' and yet you had to have the very best of credit ratings to get it in the first place

The OP may be another person who thinks he is in Negative Equity because of the TOTAL of his debt to NR, but they haven't been back to give a break down so we can clarify.

If he has 10% equity then he can remortgage elsewhere (subject to the lenders valuation) and keep the Unsecured Loan element with NR. It's not ideal due tot he increase in the Interest Rate, but it's an option.