Discount Mortgage comes to an end soon. Advi

StueyB_2

Hi peeps,

Ok, I took a mortgage with northern rock 2 years ago and the initial discount (and lockin) period has ended.

Now my mortgage is for £82,000 and the house is valued at around £95,000. I did take out a loan for the house last year (stupidity I know) for £10,000 to pay for double glazing etc. This is included in the £82,000 as is the £17 a month for the deposit that I took)

Now my previous payments under this arrangement totaled £435 a month over 30 years.

Now I have a reasonably good credit rating with no CCJS etc. I am fully employed also (kinda important I gather )

The deal that im being offered by Northern Rock is :

Combining all the debts into one amount, ie £82,000.

5 Year at base rate. + .02% (i think) so total interest rate: 5.29%

All this works out to £471 per month.

This "move" costs me £845 and they give "help money" of 750, so it costs me £95.

Any advice? I intend to see an Independant financial person to try and sort out my finances, just looking for general advice as im trying to reduce costs at the moment not increase them

payless

Ok, I took a mortgage with northern rock 2 years ago and the initial discount (and lockin) period has ended.

Many people with a NR mortgage , also took "help with costs" - this comes with a 3 yr tie- does this apply to you- are they waiving repayment of it it if you stay?

Now my mortgage is for £82,000 and the house is valued at around £95,000. I did take out a loan for the house last year (stupidity I know) for £10,000 to pay for double glazing etc. This is included in the £82,000 as is the £17 a month for the deposit that I took)

Do you mean all the loans - Mtg, Deposit loan and Home improvement are all with Nortern Rock
( if not check redemption / early repayments fees /penalties)

The deal that im being offered by Northern Rock is :

5 Year at base rate. + .02% (i think) so total interest rate: 5.29%

the current BoE base is 4.75% - NR do have 5yr base rate trackers at 4.99% (85% ltv - would they cosider that?) and 5.29% (base plus 0.54%)

This "move" costs me £845 and they give "help money" of 750, so it costs me £95.
(see comment about ties that cost with this "help")

Any advice? I intend to see an Independant financial person to try and sort out my finances,

good idea- depending on your requirements there are many other deals that may be worth considering
- although of course NR will also charge if you close your account!

herbiesjp

There are also other lenders with cheaper rates - but as usual it all depends on personal circumstance.

payless

Hi
Hairy Cornflake (DLT?)

welcome to these boards..
the more the merrier

I know you mentioned that rate as an comparable example to the product mentioned by the OP - but
most of the advisers who post , prefer not to give example products on these baords as this could be deemed as a recommendation , and of course without fuller knowledge of the circumstances and needs ogf the poster it is impossible to make a product recommndation.

Also avoids someone else trying to compete by offering something different ( which would also not definately fit the bill) or offering to overcut the on charges/ rebates etc.

hairy_cornflake_2

Payless - as you will see I have recommended the poster (if thats the right word) speak to an independent mortgage adviser

The rates quoted are purely for illustration purposes to show that there are more choices.

Was this giving too much help?? :-X

payless

No worries- I could see where you were coming from on this case -
just actually quoting rates may have regulation issues
( although as far as the site's concerned its not my remit - other then perhaps likely having the most number of posts on the mortgage board to date - I'm not a MOD - but perhaps do keep my eye on things here.
-
and as far as your own regulation requirements- well thats up to you to worry about  ;)   )

also as mentioned it avoids an pile of brokers posting
"mines better than yours"

Anyway - welcome, I am sure your input will be most welcome.

MarkyMarkD

Mortgage advisers - are you seriously saying that opting for "help with fees" on an NR 2 year product ties you in for 3 years?

They are having a larf, aren't they?

hairy_cornflake_2

TO EVERYONE - I have removed my earlier post. I had no intention of upsetting anybody.

The note was intended to demonstrate that were better deals available than was being offered by his current lender.

I thought by showing an example would be helpful - this was not a recommendation - just an example.

I would always recommend anybody reading these boards to take advice from an independent mortgage broker BEFORE doing anything!!

Once again sorry, and in future I will be more discreet in my prose ....

payless

Mortgage advisers - are you seriously saying that opting for "help with fees" on an NR 2 year product ties you in for 3 years?

They are having a larf, aren't they?

yes- the £750 ( or other amount in the past) is repayable during 3 yrs ( unless ported on same rate) - regardless to whether the actual product has a shorter or no tie in -
a point perhaps missed by some people using client facing comparison site ( and even perhaps some brokers ?)

payless

Hairy ( are you D L T ?)

I had no prob with most of the post - it was only a gentle suggestion, which I think will benefit everyone

MarkyMarkD

Oh, those NR chaps are devious b****rs, aren't they?

So you think you are buying a 2 year fix, with a 2 year tie, but opt for help with fees - and then can't redeem after 2 years without getting stiffed for the £750.

So, you either pay back the £750 - and have not got any help, despite paying a higher rate for 2 years - or keep paying SVR - meaning you pay a fortune during the third year.