Northern Rock (bad bank part...) will they raise their SVR?

jimbo5661

Hi all, I got a NR together mortgage in 2004 on a fixed deal at 7.19% where i borrowed 120% LTV, using the extra to pay to furnish it and pay off some old debt. Long story short my house is worth £115 - £120K and the mortgage is just below £127K. I was having a hard time of things last year, but put in the (overtime) hours at work and now i'm over the worst and am over paying by £200 per month to try and reduce the negative equity. I recently came off the 7.15% am and on the SVR - 0.01% so am paying now 4.78% which is helping lots. My terms and conditions state that my rate will be 0.01% below the SVR. Obvioulsy i'm not eligible for a scheme and at current rates i'm happy. I revied a letter today and i'm in the bad bank part now.

Will the new part of the bank that i'm in honour / match the SVR of the 'good' part of the bank? or will they increase it in a bid to 'persuade' people to go elsewhere? Problem is, until my house goes back up in value (if it does) and meets with my oustanding balance i can't go elswher even if i wanted to! Long post i know... any thoughts would be appreciated!!

makemdano

Hi Jimbo,
I believe SVR will be matched in NRAM and NROCK....... for the moment.
Who knows what the future holds, will someone make us all virgins again??

The financial markets seem to be of the opinion that NROCK will be gobbled up sooner than later with the usual suspects queing.
I think even NRAM would be attractive to the right sort of business. Clearly if/when either PLC is taken oout of government ownership then synchronisation of rates will no longer be so controlled
cheers

MD

jimbo5661

Thanks - maybe the good bank may lower it's SVR to become competitive and attract new good custom and drag the rate down for the NRAM too..! (i can dream!)