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

winkybag99

Yes says all the stuff about the ERC (2008-2013 £2800) then

What happens if you move house?
If you move house you can transfer this mortgage to another property.
Please refer to Northern Rock for terms and conditions regarding porting products.

So I'm stuck aren't I? I can't take out an additional mortgage with another provider can I?

Thanks

Mrs_Bumble

What happens if you move house?
If you move house you can transfer this mortgage to another property.
Please refer to Northern Rock for terms and conditions regarding porting products.

I am confused winkybag? The above states that you can transfer the mortgage to another property, if you transfer this mortgage (porting) then you won't have to pay the ERC, the additional monies you need for the new mortgage would need to be taken with NR on whatever product fits with your needs at the current time?

Am I missing something?

Mrs_Bumble

Oh and where did the 2% ERC fee come from? As you stated first that there was a 4% ERC?

winkybag99

I shouldn't think so - I'm the slightly goofy one here.

Yes we can port but we need extra money for a slightly bigger house (sorry I know you know this, just trying to be as clear as possible). NR say that if we need additional monies we HAVE to re-mortgage. Therefore the ERC will apply. As a gesture of goodwill (!) this will be cut to 2% if we re-mortgage with them.

Mrs_Bumble

So what they are saying is that they won't allow you to port the existing product and borrow additional funds on another product?

Have they explained to you why the existing product doesn't fit existing criteria? as I note that their small print goes on to say that if lending criteria dictates that you are unable to port that they will allow you to apply for a new product and as a gesture of good will half the ERC.

But it would seem that you don't have too many choices, either stay with NR and pay the 2% and whatever rate they have available or move away and pay 4%, to make it worthwhile I would have thought that you would need to get an extremely good rate, you could speak to an independent mortgage broker (whole of market) to see if you could get costings so that you could compare.

winkybag99

Hi again,

Thanks for all this :T - I think that's the conclusion I had come to but just wanted to have it confirmed as the only option. Will see how the rates compare - I may actually just remortgage with another provider who offers more flexibility and slightly better rate and put the ERC down to experience.

It's definitely going to hurt a bit though...