Northern Rock Fixed Rate Coming to an End

Jack_Kane

Hey Folks,

I've been reading the forums on the subject of my Northern Rock fixed rate coming to an end all night it seems, but I'm now totally baffled!

I received a letter telling me that NR are unable to offer me a new mortgage deal at this time, just like their website here....

https://www.northernrock.co.uk/mortgages/existingCustomers.asp

This is our first home and I don't know if NR will just boot us off their lending books leaving us to find another lender, or if they will just keep us on and put us on to their SVR?

I'm not very clever with mortgages at all and don't know what my next step should be.

I'm going to call NR tomorrow, but can you offer any advice on what to do?

beecher

You'll be put on the SVR if you do nothing. If your Loan to Value ratio is under 90% then you should be able to remortgage with a different lender. How much is your outstanding mortgage, and how much is your house worth? Try to be realistic about its value, as surveyors will be likely to value it conservatively.

Jack_Kane

Hey Beecher, thanks for the reply and for putting my mind at rest regarding SVR.

The statement that just came in says our outstanding mortgage is only a few hundred pounds less than the original valued price when we bought it two years ago - just under £115k. I'm guessing that the value has gone down and not up, but as mentioned above, my knowledge on mortgages could be better.

We also started with a 100% mortgage, so I'm also guessing that our loan to value ratio isn't under 90% (whatever that is!).

Thanks again.

beecher

Sounds like you're in negative equity so stuck on the SVR. Best advice is to overpay/save as much as you possibly can, as you risk being stuck on it when rates begin to increase.

If your house is worth 100k, then you would only be able to get a mortgage of 90k (ie 90% LTV) from a different lender, so would have to come up with 25k of your own money.