Northern Rock and arrears charges

opinions4u

The only good news here is that the fee reduces to £25 once you're less than 3 months in arrears!

I still think these charges are disgusting when an arrangement is being kept to. Less sympathy where the account needs managing because arrangements aren't being kept to.

http://www.northernrock.co.uk/downloads/TariffOfMortgageFees.pdf

You may need to take a major life changing decision to sell the house and move in to rented accommodation. Is your house worth less than the debt on it?

Lisadp1970

Those of us with sustainable incomes, fall back plans, insurance, savings, sensible family planning and contingency do not want to subsidise people who take risks like you.

How are you subsidising me? And what the hell do you mean by sensible family planning? My children are all wanted, not like a lot of women who can't wait to get back to full time employment as they can't stand the heat of being a mum!
Also who am I a liability too?
My situation isn't costing the country anything, the only benefits I receive are for my Autistic son and the usual child benefit and tax credits.

Lets hope you don't lose your contract and find yourself in this situation, that would be such a shame:rotfl:

beecher

Lisadp1970 wrote: »

Lets hope you don't lose your contract and find yourself in this situation, that would be such a shame:rotfl:

I don't think comments like this are at all helpful - lisyloo makes a lot of good points, although they may not be want you want to hear.

It is unlikely there was ever going to be an easy solution to building up £10,000 worth of mortgage arrears - it is bound to cost you substantially more. You need to make a plan, keep to it, and learn lessons for the future. One very important lesson is surely to save rather than spend when earning a huge wage in an insecure environment?

Lisadp1970

You may need to take a major life changing decision to sell the house and move in to rented accommodation. Is your house worth less than the debt on it?

The house is in negative equity so selling to pay off the mortgage is out of the question.
With another baby on the way it is tempting to chuck it all in and find a 4 bed house to rent (ours is only 3 beds) even though the situation we're in isn't good, I still feel more secure in our "own" home than someone elses if you know what I mean, especially with my eldest sons problems.

The £1100 a month is manageable, it's just these charges I find so unfair, especially as NR know looking at our account we will never clear the arrears with what we're paying at the moment, so it's easy money for them!

Lisa

silvercar

Lisadp1970 wrote: »

If we went bankrupt then we would clear off some other debts but we would have to allow the house to be repossessed and sold before it would help with that. There again I would need advice as to whether bankruptcy would write off a mortgage debt after repossession because it wouldn't while we are still living here.

You may prefer this to my other posts:)

You may be confusing bankruptcy and repossession.

With negative equity you can't sell the house without funding the shortfall.

If you were repossessed you could find a rental elsewhere that was affordable. The lender would eventually sell the property. You would be liable for the shortfall, but lenders usually allow you a few years to get back on your feet. (Not least because they can't get blood out of a stone.) Lenders will then try to agree with you a repayment plan. The size of the debt would have increased massively by repo charges, probably a low selling price and years of interest on the shortfall. Your £55 would seem like peanuts. Nevertheless people do come to monthly arrangements over shortfalls and lenders do accept smallish lump sum go-away payments if there is little opportunity for more. It does leave this liability hanging over you.

If you went bankrupt (after repossession or handing the keys back) the shortfall would become an unsecured debt and written off in bankruptcy. You would both need to go bankrupt and suffer the consequences: no credit, basic bank account, name in the paper, etc I don't know the impact it would have on your husband's career.

Bankruptcy last a year but stays on your credit record for 6 years. Some lenders won't ever lend to anyone who has been repo'd. So there are some long term downsides. In practice you can rebuild your financial life again after a few years. With recent mortgage arrears your credit rating is stuffed in any case. Some would consider that an opportunity to get rid of the mortgage once and for all. Some would go as far as to say, stop paying the mortgage and save for a rental deposit and advance rent, sort out a new home and get on with your lives. YOU DO NEED TO TAKE PROFESSIONAL ADVICE ON THIS.

All options to consider.

beecher

Lisadp1970 wrote: »

The £1100 a month is manageable, it's just these charges I find so unfair, especially as NR know looking at our account we will never clear the arrears with what we're paying at the moment, so it's easy money for them!

Lisa

You're just paying off the interest though. What's your long term plan for paying off the capital and for paying off the arrears? Maybe you need to refocus on that rather than channelling your thoughts onto the charges?

lisyloo

How are you subsidising me?

If you go bankrupt then ultimately other customers will have to pay the costs.
If you weren't charged for the extra admin or extra risk of your situation and it was provided "free" by the lender then ultimately other customers will pay.

Also who am I a liability too?

You are a liability to the bank.
You could deault on your loan.

My situation isn't costing the country anything

At the present time I agree, but someone will have to pay if you default.
Ultimately this is other customers, shareholders (that's people like you and me with pension funds).

Lets hope you don't lose your contract and find yourself in this situation, that would be such a shame:rotfl:

Very grown up, but I do have sensible contingency planning, including
a) insurance for forseeable events
b) low debt
c) savings
d) employment benefits (I'm not on a contract).
e) being in a posistion to work
f) having marketeable skills and qualifications so that I can sustain an income.
g) having multilple career plans

I have thought it all through (before the event) and I very much doubt I would find myself in a simialr situation.

It's a shame you want to laugh at other peoples potential misfortune rather than learn something from the sensible points that are being made.
If you don't learn anything from this you are doomed to make the same mistakes again.

Lisadp1970

Lisyloo

My husband has very marketable skills, unfortunately they are too specialised and nobody and I do mean nobody is taking on people in these positions and haven't done in quite a while, we had to live off our savings as well as income as the income just kept going down, he took the plunge and took a full-time role.
I came on here for some advice from people that may be in or have been in a similar position, not for a lecture from you. You may have some valid points but the way that you put them across and your general manner leave a lot to be desired. If you ever find yourself in a similar position then maybe you will be a bit more understanding.
1, if you lose your contract and find that your role never comes back
2, your role continues during this period but the money drops down and down in the meantime eating into your savings.
3, You find yourself being the only person in the household who can work because you have a disabled child.
4, Various other disasters befall you which just take all your money and leave you with nothing.

Until you find yourself in this position please try to be a little less abusive.

gingin_2

My husband is an IT contractor for a Bank and said just last week, if he had been bankrupt, they would not allow him to work for them. Given the rigorous financial/ security checks he goes through with each job, I suspect it would be the same for most, if not all Banks. I will ask him when he gets home later.

Something to consider, sorry it's not positive.

Lisadp1970

Gingin,

These has been going on for several years, banks will even fire their staff if they get an IVA or CCJ as being "untrustworthy".

Up to them of course.