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

picardygirl

VIGILANT22 wrote: »

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!

Pointless option for me ...... have no intention of moving or selling our house!

picardygirl

makemdano wrote: »

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

No idea i'm afraid ..... the lady who i spoke to, who was very helpful, just said another lender ...... she had to read out from an advice sheet they had been given ..... so obviously others are ringing up asking about this too ......

picardygirl

VIGILANT22 wrote: »

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.

Thanks for that VIGILANT22 - we can read, you have no need to highlight the words ...... but its not as black and white as it seems sometimes ...... but please i think you should add something to your signature on here ..... as you have joined this forum this month with such "expertise" knowledge ..... please publicise who you are like others do ...... before you ask why i have no signature ...... i dont feel the need to have one ...... as i have no expert knowledge in the financial field just a lot of common sense :rolleyes:

Rick62

So it sounds as if, because they are not offerring new (larger) mortgages to people when they move (or larger by £3,000?), they are allowing people to take mortgages with other lenders and are rebating the repayment penalty, which would be in accordance with Treating Customer Fairly.

Shame they can't clearly detail their policy on this so people knew their position rather than having to go on rumours and hope.

Wutang_2

picardygirl wrote: »

Thanks for that VIGILANT22 - we can read, you have no need to highlight the words ...... but its not as black and white as it seems sometimes ...... but please i think you should add something to your signature on here ..... as you have joined this forum this month with such "expertise" knowledge ..... please publicise who you are like others do ...... before you ask why i have no signature ...... i dont feel the need to have one ...... as i have no expert knowledge in the financial field just a lot of common sense :rolleyes:

Just wait, he will start going on about electricians soon

poppy10_2

Stop fighting, you two.

ossian

picardygirl wrote: »

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".

There is logic behind this and I suspect that NRAMs corporate lawyers have advised that their are grounds for dispute if they wont allow customers to extend their mortgage and therefore force them into ERPs when the customer is extending it due to having to relocate.

I will call them Monday and investigate this as I am in my fixed rate period however due to redundancy I have had to take a job in another city and must move house. I am therefore being forced into taking the early redemption option if they wont allow me to extend my mortgage. I currently have less than 10k of mortgage but will need considerably more to buy a similar property near my new job.