Northern Rock - 100% Mortgages - End of fixed deal...very anxious

ljs1981_2

Hi can anyone help?

I took out at £105k 100% mortgage with NR last Oct and my fixed rate (extortionate 7.49%) is due to end next Oct. I am a teacher with a reliable salary and my earnings will be approx £29,000 by the time i remortgage. I have never missed any payments on mortgage or credit cards etc. I live on my own no dependents. I do have about 8k worth of debt (new car and moving costs) but pay a substantial amount each month - approx £300 - again never missed any payments. I am really worried as so many companies have withdrawn their products, and because i'll have no money to put into the house at remortgage stage (due to credit repayments) i'm worried no one will want to know. I don't want to lose my house and am concerned about the future. Does anyone have any advice? Is it likely that will never find a mortgage without any cash to put into it?

Thanks

confused31_2

I wouldnt worry about it to much until it gets closer, but say you needed one now and you are in negative equity, you would just transfer onto northern rocks standard variable rate, which at the moment is 5.84% so you would be better off.

You only need a deposit for a new mortgage if you want to move mortgage, or by a fixed or tracker product.

I cant see rates flying up so if they stay low you will be okay, its if they go up you will be in a mess.

I think they will stay low for at least the next 12 months so fingers crossed you will be okay.

confused

dimbo61

If you can clear as much debt as possible
and then overpay on the mortgage.
If the mortgage does revert to NR SVR of 5.84% then overpay the savings you will have to build up more equity in your home.
Read the terms and conditions of your mortgage offer or KFI to see what happens to your mortgage after the fixed rate deal ends. GOOD LUCK

missk_ensington

I second what other people have said, also try and get an idea of what your house might be worth (you can use www.houseprices.co.uk to see what the other houses on your street have sold for) they say house prices have plummeted, but when I remortgaged a couple of months back, it was valued at £15,000 more than Id paid for it 2 months previous to that - probably because Im in a sought after area, in Lancaster Royal Grammar catchment area in a first time buyers house under stamp duty threshold. I still think good value, FTB homes in decent areas under £125,000 are holding their value - so you may not actually be in negative equity, and if prices go up even a little bit over the next year you might find things arent as bad as you thought!

x

koexelek

confused31 wrote: »

I wouldnt worry about it to much until it gets closer, but say you needed one now and you are in negative equity, you would just transfer onto northern rocks standard variable rate, which at the moment is 5.84% so you would be better off.

Yes, now that they have finally agreed to lower the svr, the panic is over for most people

ljs1981_2

Hi all

Thanks for your comforting words! My house is a 1st time buyers property in a sought after area where 1st time buyers properties for reasonable prices are rare. Prior to me buying it, it had always been rented so I have gutted it and refurbed etc, fairly cheaply ( as lots of tradesmen in the family) so have added some value i hope - albeit not much in the current climate.

I am just very concerned to see that NR have put a note on their site saying they will not be able to offer their custiomers any more deals at the end of their fixed. I was unsure if this included people who wanted to default to their SVR. I do feel a bit better now however...maybe i won't be homeless after all.......

Thanks Again.

SandC

Agree with all the above, I wouldn't worry.

It's like they say - they are not offering 'deals'. It wasn't all that long ago that 'deals' were the hard things to get and SVR was the norm. Even when you got a fixed or reduced rate deal when I bought mid 90s you would then be tied in for another 2/3 years on their SVR. It's just how things were and people forget it just wasn't so easy to borrow money or shop around and switch (hence why they charge so much now).

Things are just settling down to sensible lending again. With lower interest rates you'll be in a better position than a lot of people who bought when you did and took a longer fixed rate at a level like yours. When you come to the end of a 'deal' it doesn't (and never has) mean that your mortgage arrangement is over.

payless

In fairness even people with equity are finding most "new" deals are not much better than SVR ( and usually come with fees and/or ties)

mitchaa

As above due to the recent BOE BR changes, you will be better off by going onto the SVR.

There is even more talk of the BOE BR reducing further in December.

confused31_2

payless wrote: »

In fairness even people with equity are finding most "new" deals are not much better than SVR ( and usually come with fees and/or ties)

Its mad i just looked at the nationwide website for their lowest fixed rate deal and it 5.78% for 5 years with a massive fee of 1999 pound.

Their svr mortgages are going to be 4.69 at the begining of december and you dont pay a fee to get one, i think you may need a 25% deposit but its still a good deal.

confused

kez28

Hi there

I have a 3 year fixed rate deal with halifax which is due to end next july 2010. My house is a 50%rent, 50% buy house and I put down a 5% deposit., I live and own my house alone Like other people who are in a similar situation to myself have stated, I am worried about renewal of my mortage next year. I know i have another year left yet but things are tight as it is now with bills increasing and the general cost of living rising. Its really beginning to stress me out to be honest.

is there any advice, does anybody think things will improve by this time.

thanks