Northern Rock restructure - can I use this to get out of ERP?

VIGILANT22

Why are you unhappy being tied for the next 2yrs, because of the rate your paying?

hem852

just_taylor wrote: »

Due to the restructure is there any angle I can exploit to to move my mortgage to another lender without incurring the ERP?

In a word Yes!

I spoke with Northern Rock today as I am in the same position.

They stated if I move my mortgage by June 2010 and my new mortgage includes at least £3000 of extra borrowing then I can apply for a refund of the Early Repayment Charge and the help with costs charge that I would normally incur.

Give them a call just to check the same terms apply to your product on 08456028301, they are very helpful and seem well aware that the restructure does limit customers options and seem very willing to help.

Regards

John

VIGILANT22

hem852 wrote: »

In a word Yes!

I spoke with Northern Rock today as I am in the same position.

They stated if I move my mortgage by June 2010 and my new mortgage includes at least £3000 of extra borrowing then I can apply for a refund of the Early Repayment Charge and the help with costs charge that I would normally incur.

Give them a call just to check the same terms apply to your product on 08456028301, they are very helpful and seem well aware that the restructure does limit customers options and seem very willing to help.

Regards

John

I am very sceptical in reading the above..why would NR take the 3k when you're reedeming your mortgage and then tell you to apply to have this refunded later....does not stack up....

If anyone wants to follow this route, make sure you have this in writing from NR......followed by posting on here...as this is in my experience completely unheard of....

rsykes2000

hem852 wrote: »

In a word Yes!

I spoke with Northern Rock today as I am in the same position.

They stated if I move my mortgage by June 2010 and my new mortgage includes at least £3000 of extra borrowing then I can apply for a refund of the Early Repayment Charge and the help with costs charge that I would normally incur.

I would certainly want that in writing before proceeding with anything.

VIGILANT22

rsykes2000 wrote: »

I would certainly want that in writing before proceeding with anything.

Exactly, thks for posting that...as people often read and believe what they want to believe..which they later find out to their cost...

Rick62

hem852 wrote: »

In a word Yes!

I spoke with Northern Rock today as I am in the same position.

They stated if I move my mortgage by June 2010 and my new mortgage includes at least £3000 of extra borrowing then I can apply for a refund of the Early Repayment Charge and the help with costs charge that I would normally incur.

Give them a call just to check the same terms apply to your product on 08456028301, they are very helpful and seem well aware that the restructure does limit customers options and seem very willing to help.

Regards

John

I would guess they were talking about changing your Northern Rock mortgage to a new NR mortgage on moving home. Otherwise makes no sense.

picardygirl

As a NRAM customer i have just called them and asked the question ..... can anything be done on the ERP .....

If you are a NRAM customer and are SELLING your property and moving house and require an additional funds (ie. a bigger mortgage than your NR one) from your new lender, once the mortgage funds are in place on new property, NRAM are willing to refund the ERP that was paid to redeem the NRAM mortgage - prove has to be provided that the mortgage was completed and the funds were given (ie. mortgage offer is not good enough) .

They are not advertising this, but i was told if customers are asking for redemption statements this information is being given on them ....... and was actually told NRAM are doing this as a "goodwill gesture".

VIGILANT22

So what you should do is request a redemption statement and see if this is stated on it....by requesting a redemption statement you're not committing yourself to anything...but it would be good to know if they're prepared to put this in writing!

makemdano

.... is this not to a 50% limit and only if the new provider is NROCK?

VIGILANT22

http://ask.northernrockassetmanagement.co.uk/help/ac-mortgage/mortgage_with_nr

Question: I have a mortgage with Northern Rock (Asset Management) plc. If I want a new mortgage deal, what options are available to me?

Answer: You can continue with your existing mortgage product, but Northern Rock (Asset Management) plc will not be able to offer you a new mortgage product or any additional lending. If you would like a new mortgage deal, you may wish to consider what options are available to you from other lenders.

http://ask.northernrockassetmanagement.co.uk/help/ac-mortgage/services_change

Question: Will the services provided by Northern Rock (Asset Management) plc change as a result of the restructure?

Answer: The company does not offer new mortgage products, additional lending or savings products to customers. For example, if you move house and transfer your existing mortgage to your new property, you will not be able to increase the size of your loan.