Flexible Mortgage Overpayments may not be returned

onedelia

Hi

i use my Northern Rock flexible mortgage facility to try and save myself a money. I took advantage of o% credit card deals and paid them to my Northern Rock Mortgage which is at 7.19% until October, bringing my monthly payments down. All i do is monthly, phone up and request some of my overpayment back. Today however, for the first time i had to go through an affordability check - asking if any of my circumstances had changed since i took out the mortgage and informing me that they could keep the overpayments if they felt i couldn't afford my mortgage. I was told this was because they are now trying to carry out responsible lending. The check itself seemed to only count on my answers but i am very worried by this new development as my circumstances have changed since i took out the mortgage and i would be in terrible trouble if they kept the money i have currently overpaid. Should i be worried? Should i ask for the whole amount back and cost myself a bit instead of saving a bit. Apparently it's in the small print that they can decide to keep this money, something i wasn't aware of.

any advice appreciated

RufusA

Personally I wouldn't rely on it for schmoozing (sp?), the risk outweighs the rewards IMHO.

Looks like this Northern rock is getting tougher on their lending criteria, and they could get tougher still if getting close to negative equity territory!

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/5137486/Northern-Rock-makes-it-harder-to-borrow-back-on-flexible-mortgages.html

Rufus.

Robert_Sterling

Schmoozing or Schmoosing are both allowable.

getmore4less

Stoozing, is the term you are looking for.

unite79

Im with Rufus on this, The N Rock have DRAMITICALLY moved the goal posts over the last week - and I wonder if they may move the Field comlpletly in the next few months - If you are going to need it in the short term (id get it)

patchwork_cat

Northern Rock state they are now trying to lend responsibly!! Weren't they supposed to be doing just that for the last couple of years?

bsp_2

The same thing happened to me today. I also stoozed and now need to repay it, i only phoned for 3K as i didn’t want to run the risk of going short this month and getting charged interest (i actually only needed £1K) Initially i was told to answer some new questions to protect my account from fraud, it quickly became clear i was being credit scored. My salary nearly doubled last year and i have £40k in an investment. I have no debts other than the card to be paid tomorrow, and my mortgage is joint with my partner. I have never reduced my monthly amount and i have always made overpayments. 3 times my salary alone covers the mortgage, but they have still referred me to the underwriter. I therefore asked for the whole amount to be returned as i don’t want to go through ever changing checks to get my money.
My issue is that this change may well be in the small print, but i only took this mortgage as it was sold to me that i could take my money in and out. If this is now not the case then have i been miss sold a mortgage?
I have been told they will call me back tomorrow and let me know if they will return the money, i will update the site when i get the result.
Talk about shutting the gate after the horse has bolted. If they are so concerned about my finances why don’t they reduce my interest in line with the BOE!!!

onedelia wrote: »

Hi

i use my Northern Rock flexible mortgage facility to try and save myself a money. I took advantage of o% credit card deals and paid them to my Northern Rock Mortgage which is at 7.19% until October, bringing my monthly payments down. All i do is monthly, phone up and request some of my overpayment back. Today however, for the first time i had to go through an affordability check - asking if any of my circumstances had changed since i took out the mortgage and informing me that they could keep the overpayments if they felt i couldn't afford my mortgage. I was told this was because they are now trying to carry out responsible lending. The check itself seemed to only count on my answers but i am very worried by this new development as my circumstances have changed since i took out the mortgage and i would be in terrible trouble if they kept the money i have currently overpaid. Should i be worried? Should i ask for the whole amount back and cost myself a bit instead of saving a bit. Apparently it's in the small print that they can decide to keep this money, something i wasn't aware of.

any advice appreciated

kingkano

bsp you never came back with an update? did they return the money?

I am facing the same situation. I am annoyed that verbally on the phone last year they told me there would never be a problem getting back my own overpayments. But when I mentioned this today they said bad luck its in your mortgage terms.

The trouble is because the money is stoozed to them it probably looks like I have bad debts! Not only that they have all our savings too as that was the best interest rate at the time!! I'm really annoyed this was done on the quiet!