drop by nortern rock trnsfer to trust

connieisher

my husband and i was advised by adviser in 2007 to take out a 104% mortgage over 25 years with a renewal in 2010.Last year northern rock wrote to inform us,that in so many words they would not like us to continue our mortgage with them.Last week our adviser contacted us to inform us that he would like to transfer our mortgage over to a trust.i do not know anything about trust apart from they are not banks and they carry a few risks?can we not stay with nortern rock?are trust safe?is our adviser making money out of us?i believe we was advised badly before,but was made to believe everyone was taking out 104%mortgages.i'm worried.we have never defaulted on our mortgage.help!in response to mrs bumble nr letter basical said they didn't want to carry on with any more client with unsecured loans we borrowed 142,000 20,000of that was unsecured.deal runs out in april.adviser just left a message saying we need to get this into trust.sim property in street went for125,000 just last week.we have 3,000 credit card paid 1,000 of that last mounth.income when we took it out has drop due to having a baby then my company went bust my hus was made redundant but found another.we've lost about 10,000 to 15,000 a year on income.worried we can copy with all our commitements.

Mrs_Bumble

When you took yuor Northern Rock mortgage originally some of it is the mortgage and some will be an unsecured loan. Find your original paperwork and see what was taken on each.

The letter from Northern Rock did it just say that they wouldn't offer any new deal?

What exactly did your adviser say last week, I am not really following this bit?

Speak to Northern Rock and see if their position has changed and whether they would now envisage offering you a deal in 2010.

When exactly is your deal up in 2010?

Did you/have you any adverse credit history at all?

Do you know the current value of your property, you can have a look at sites like https://www.zoopla.co.uk

Do you have any other credit committments?

What income do you have?

dimbo61

You have a mortgage with NR and even though you are in negative equity you are still with them.
Check what happens when your current deal ends by reading the paperwork that came with your mortgage offer.
Never heard of trust mortgages but why would they want you!
You can stay with NR as they cant demand there money back as long as you pay the mortgage each month.
Do you go onto the lenders ( NR ) SVR in 2010 as you may be paying less!
Overpay if you can afford to as its a debts at the end of the day.
GOOD LUCK

happybroker

I think the mortgage adviser is probably wanting to come out and look at putting your life/ critical illness cover in trust rather than the property (can't put a mortgage in trust).

It's a good way of trying to get more business as you will have to name trustess and the advisor will want to go and see them to explain their obligations, then try and review their protection arrangements.