Northern Rock 100% Interest Only Mortgage Ends

lcedwards

Hi,

First post here so I hope someone can help!

We bought our first home in September last year and our Northern Rock 100% Interest Only Mortgage (which was fixed for 2 years) is due to end in September 2009. Given that house prices have fallen considerably in this time, we are now undoubtedly in negative equity, although we are not looking to move any time soon.

I cannot remember what the rate is off the top of my head but we just about manage to get by every month.

Obviously the Northern Rock issue has been well publicised but I was just wondering what would happen when the fixed ends i.e. what are our options? We do not have enough savings to put down 10% for a new mortgage so I am slightly worried. We could probably stretch to a small incraese in our repayments (10 - 15%) but anymore would be too much.

I would imagine that NR are keen to offload us but can they pull the plug completely?

Thanks in advance for any help / advice,

LC

_Andy_

Hi & welcome to MSE.

NR won't ask you to redeem your mortgage it will just mean you fall on to their SVR (standard variable rate).

beecher

You will go onto the SVR which will be 5.09% from 1 February. No-one knows what it'll be in September. BTW I take it you mean your bought your house in September 07?

dimbo61

Could you contact NR and ask if you can make overpayments on your mortgage each month untill september.
Come september depending on NR svr you might have even more money to overpay the Interest only mortgage
Its a start and if you can get onto a repayment mortgage ASAP.
GOOD LUCK