Northern Rock - Complaint??

Ian_Griffiths_Halifax

By the way, Northern Rock (and vus the Government) are being reported to the Data Protection Commissioner for breaches of Direct Marketing Rules. They are Marketing deals of other lenders to NR customers, despite customers opting out of receiving Marketing Materials.

opinions4u

Gorgeous_George wrote: »

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

Surely they should!

neverdespairgirl

feisty1 wrote: »

However, they can offer new customers deals with free legals & vals which incurs a cost to the Rock, how does that make financial sense?

It makes financial sense if those customers have good credit ratings and lots of equity.

neverdespairgirl

devils_advocate wrote: »

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

That is an unnecessarily unpleasant remark to someone who is in a difficult position.

neverdespairgirl

Gorgeous_George wrote: »

Of course, that is nonsense - but so is imposing a puntive SVR on those who can least afford it.

While it is higher than average, punitive is a bit of a strong description

feisty1

"It makes financial sense if those customers have good credit ratings and lots of equity".

Please read what I wrote carefully, I am drawing attention to the fact they have existing customers with good credit ratings and low LTV and they are mortgaging them out or if retaining, retaining on the SVR. Whilst attracting NEW CUSTOMERS with free legals & vals at a cost to the Rock, this DOES NOT MAKE FINANCIAL SENSE & also not TCF Treating Customers Fairly

curs82

You don't see Sainsburys selling Milk for 10p a pint to new customers and £1 a pint for existing customers do you?

You don't bite the hand that feeds you...

opinions4u

feisty1 wrote: »

"It makes financial sense if those customers have good credit ratings and lots of equity".

Please read what I wrote carefully, I am drawing attention to the fact they have existing customers with good credit ratings and low LTV and they are mortgaging them out or if retaining, retaining on the SVR. Whilst attracting NEW CUSTOMERS with free legals & vals at a cost to the Rock, this DOES NOT MAKE FINANCIAL SENSE & also not TCF Treating Customers Fairly

I totally agree that Northern Rock, which is supposedly meant to be running down its mortgage book, should not be offering any new finance at all (except perhaps to existing customers improving their homes or moving to larger homes).

Gobsmacked to look on their web site and see 5 buy-to-let deals, 4 of which charge less than their SVR!

Comparing them to Bradford & Bingley, who have shut up shop, suggest HM Government see NR as a victim of circumstance whereas B&B is considered a victim of recklessness.

silvercar

devils_advocate wrote: »

Sorry, but it was a forseeable risk that

i) Your mortgage provider would not continue with the teaser rate you got, and /or agreed but therewas the expectation that other teaser rates would be avilable at NR or elsewhere
ii) because some entity offered you a mortgage, other entities might not be so keen to do so, but there were 4 times as many mortgages available then as now, so reasonable to assume that people would still be offered deals/COLOR]and /or
iii) house prices could go down, as well as upagreed, but house prices wouldn't matter if you (a) weren't selling to realise your loss and (b) there were still loans available at 100% (or more) LTV..

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

Its the fact that all the factors have come together at the same time that people have been left high and dry. What justification can there be for protecting Icelandic savings over 50k when people were never led to believe that the money would be protected, yet the general market led people to believe that there would always be mortgages available.

Ian_Griffiths_Halifax

I am afraid that in the current financial crisis, all lenders seem to be able to do what they want to whoever they want and they are going unchecked as the regulators have the mother of all hangovers to cope with, while constantly running to the loo due to the dodgiest of all curries.

Northern Rock aren't providing rates to exisiting customers, good OR bad, with the exception of those moving house. They are also Marketing against Direct Marketing rules IMO. Banks and B/S are increasing rates despite reductions in the Base Rate by the BOE and they are doing this by changing, for example their Base Rate Trackers from BOE Base + 0.5% to BOE Base + 1%, vus taking any advantage of having a Base Rate Tracker away from new potential borrowers.

Thepublic are being screwed but lets see what this week brings. Hopefully some lenders will see sense to throw customers a lifeline.