Northern Rock trying to retain me after fix ends!

pault123

I was under the impression NR were trying to get rid of customers when the fixed term ends, but today I received an offer with no fee's.

My 5 years fixed @ 4.95% finishes in Feb, and they are offering me a tracker at 2.59% above base rate, or a 2 year fix at 4.19%. Quite attractive considering there are no costs involved or changing over hassle!

I thought it was cheeky of them to send me the letter today and say I have until the 1st December to take the offer up! Seems like they may be trying to rush me into it by giving me just over a week to decide


The SVR is 4.79% on the tracker after 2 years which is high compared to Woolwich and i'm rather tempted by ING's offers of lifetime trackers which after 2 years may be less than 4.79%.

Just thought i'd share the letter took me by surprise, especially this little gem at the start

"As a valued customer its important to us that you are able to benefit from a competitive mortgage deal. Thats why were offering a range of mortgage products that we think should be attractive to you in comparison to your current deal" :rotfl:

Joe_Bloggs

What is your loan to value ratio ? My guess is that it it is considerably less than 100%.
J_B.

pault123

Hi JB,

74%

ManAtHome

That should get you into the the "Good Bank" they'll be trying to flog to buy some pre-election sweeties then...

Joe_Bloggs

@Paul123
There are thresholds of LTV where you can get good interest rate deals or mediocre deals. If you are on a boundary then your fate may be in the hands of the surveyor / valuer. I have no idea what is to happen to Northern Rock. I am sure that they are going to need to keep a fair number of low LTVs on their books. Forcing those with high LTVs to default is not going to help either.
J_B.

picardygirl

ManAtHome wrote: »

That should get you into the the "Good Bank" they'll be trying to flog to buy some pre-election sweeties then...

ManAtHome - you say that should get the OP into the good bank ...... whats your guess at what LTV they will class at good bank ......

Also, how do NR know values of properties ...... whilst some have dropped drastically others have held quite stable .

picardygirl

pault123 - a colleague a work was also offered a good remortgage deal when there deal came to an end back in the summer ---- they very pleased with what they were offered and stuck with NR.

dexter_fan

We are currently re-mortgaging (currently with another bank) and our broker has sent us to NR as a good deal. We have a LTV of about 55% and were offered 2yr fixed at 3.69% or 3 yr at 4.39% or 2yr tracker at 2.75% (2.25% plus BOE). I was surprised that NR were taking on new mortgages - although that was before I read on here about the good/bad bank.

ManAtHome

picardygirl wrote: »

ManAtHome - you say that should get the OP into the good bank ...... whats your guess at what LTV they will class at good bank ......

I'd guess at 80% - I suspect they could shift around 30 billion quids-worth with perfect repayment records on that basis. Dunno what that would be worth for the 'sweetie fund' - depends whether they flog it, float it, or let it revert to Building Society status...

picardygirl

ManAtHome wrote: »

I'd guess at 80% - I suspect they could shift around 30 billion quids-worth with perfect repayment records on that basis. Dunno what that would be worth for the 'sweetie fund' - depends whether they flog it, float it, or let it revert to Building Society status...

I just read a comment on the merged NR thread at the top of the mortgages forum (sorry dont know how to post a link) its says that the Daily Mail have suggested 80% of mortgages will go into the "bad" bank leaving only 20% with low LTV mortgage will go to the good bank ........ we are about 70-75% LTV depending on how NR value our property (but going on properties current selling prices in our road we are 70% LTV) ....... lets just hope they inform us before christmas as promised so we know where we stand !

picardygirl

just a thought ....... would NR offer new deals to current mortgage customers to then a month down the line put them in the asset side of the company ......