Northern Rock won't extend my mortgage, only re-mortgage (with large fees!)

winkybag99

Hi all,

Have seen all the talk about ERCs, and idiotically signed up for a 5-year fixed last October with Northern Rock. The ERC is 4% for this period (until October 2013) which will be £2800 from our £70'000 mortgage on a £135'000 house.

We're looking to move, possibly extending the mortgage to £110'000. Obviously I'd like to avoid the ERC - Northern Rock have said we would be able to port our mortgage but that they don't do extensions on mortgages that started when ours did. Is that anyone else's experience? If we re-mortgage with them we will only have to pay a 2% ERC but it's still a complete pain as their rates are not even that competitive now. I don't think we'll have a problem re-mortgaging with another firm as our credit scores and LTV ratio are pretty good.

Any advice most appreciated!

Ben :huh:

unite79

I would go back to Northern Rock - The product should be portable!

Mrs_Bumble

Sorry do you mean that NR have said that you can't port your existing mortgage and take an additional amount on a different product to cover the remainder?

winkybag99

The advisor I've spoken to has said it is portable but that there is no chance of an extension on it - should I try speaking to someone else?

winkybag99

RE: Sorry do you mean that NR have said that you can't port your existing mortgage and take an additional amount on a different product to cover the remainder?

No they can port to the same value but won't extend my current product. Is what your suggesting a possibility? Would this not just be an unsecured loan (and have a high interest rate with it)

Thanks

scope

You should be able to port the mortgage at its currently value over to the new house, then take out an addtional mortgage (with one of the products they offer today) for the additional amount you need..

winkybag99

Hi Scope,

I rang and asked about that and they said that definitely was not an option. So looks like I'll have to stay with them and pay the additional £1'400 unless I'm being led up the garden path?

Thanks

Mrs_Bumble

The product that you have currently you would not be able to borrow additional funds against it as that isn't covered in portability.

Have you asked if you can port your current product with the remainder on a different product that is currently available. Does that fit within affordability and LTV rules.

winkybag99

Apparently can ONLY remortgage with Northern Rock for a 2% ERC. Having spoken to the advisor again it appears this is the only option.

Thanks for all advice

Mrs_Bumble

Check your original mortgage offer.

Mrs_Bumble

Section 10 of the offer.