Northern Rock SVR Customer...

CocoPops_3

Looking for some external thoughts on current situation.

I did look in the Northern Rock thread, but it's a bit big an unwieldy now, so thought a new thread might be best.

I just had a call from Northern Rock, trying to encourage me to speak to one of their recommended brokers.

Background
Bought (new build) for £271k in March 07
Valued Nov 08 at £270k, not sure what it's valued at now? £250k-260k?
We have a mortgage value of £212k
Monthly payment is £1160(ish) but we are overpaying at £1500/month (so overpay of 400ish each month) (and have 3.5k in borrowback funds)

So, do I sit it out on the SVR of 4.79%?

I've had a look around at other deals but nothing seems quite as good as the SVR currently.

Also, why do NR take so long to announce what they are doing with the SVR? It's not like it's a surprise when the BoE drop the rates etc like last week. So why have NR not yet announced whether they are dropping or holding the SVR?

Anyway, that was my first post, so go gentle

dimbo61

Have you had a look to see what NR are offering to existing customers ?
Well done on overpaying by £1500 a month by the way.
Post Office are doing a 5 year fix at 4.15% but LTV is 75% and I dont know if you want a long term fixed deal !
What do you want to do FIX,tracker !! or look at other options ie OFFSET?

beecher

I'd be concerned that it might be valued at closer to £220 - 230k so your LTV might be too high to remortgage with some lenders. Can you phone back Northern Rock and ask what they have your property valued at? If your LTV is under 90% at the moment I'd be looking to move elsewhere before it is higher than 90% and you're stuck.

CocoPops_3

Honestly...
no idea
We've always had fixed rate deals so we knew what we were paying.

Now, well not sure..

dimbo61

Nr have been told by the Government to start lending again so you might well get a good deal from them and save the cost of moving lender.
If you like fixed deals ( I DO ! ) then see what they have to offer and overpay if you can and are allowed. GOOD LUCK

CocoPops_3

I'd say my LTV is 85%.
That's with the house at 250k, which I believe it to be, being as it was valued at £270k in November and the developer is listing them (same housestyle, same development site) at £265k currently.

Salaries aren't an issue with myself and Mrs Pops earning just over 100k per year between us.

It's just the LTV that is potentially gonna cause an issue.

At the moment, I'm inclined to stay on the SVR but how long before rates go up and we're stuck with a more than 90% LTV.

koexelek

CocoPops wrote: »

Also, why do NR take so long to announce what they are doing with the SVR? It's not like it's a surprise when the BoE drop the rates etc like last week. So why have NR not yet announced whether they are dropping or holding the SVR?

Anyone know if they are going to drop it from 4.79% next month yet ?

Have not seen any official word yet

downhiller

I'd be looking for a fixed deal asap.

IF (and it's a big if) house prices continue to drop by 2% a month, in six months £24k will be wiped off the current value of your house, yet with your overpayments you'll only have reduced the mortgage by just over £2, 000

CocoPops_3

Well having ummmm'd and ahhhh'd for a while.
We've just accepted an offer to fix with YBS at 5.29 until 2012.
Payments are only just above the payment we're on with NR's SVR and we can still over pay by £400 a month.
So, all in all, fairly happy at the moment.
Hopefully by the time 2012 comes around, things are some what rosier again.