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

HangTime

I know this is an old thread until it was bumped today, but I think it's actually quite interesting to see that the spectre of people being 'trapped' on their SVR due to negative equity isn't quite the disaster some predicted (at least in the short term).

The fact is, most people who took out mortgages with very high LTV were likely paying a high fixed rate to start with, and so the drastic cuts in interest rates lately mean that most of them will be paying less on their lender's SVR. The OP was on a 7.49% deal and NR SVR is currently 4.79%, and presumably won't be drastically higher come October.

Obviously in the medium-long term, rates could rise again giving the SVR a bit of a sting, but the bottom line is, at the momeny high LTV is only a major problem (in terms of repossession fears etc) if you need to remortgage.