norther rock early repayment charges

picardygirl

rozzy wrote: »

In my letter from NRAM they stated I could port my mortgage, I just wouldnt be able to borrow any more from them.

Just re-read my letter it states ......... is this the bit you mean .....

"This includes the use of flexible features such as overpayments, borrow back and payment holidays.

However, 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".

So is that saying the mortgage can be ported to a new property as long as you dont borrow any more money to do so, but is this not a new application and they are not doing new applications/mortgages for NRAM customers ? So if Mr Joe Bloggs has a £100k mortgage with NRAM and sells his house and buys another house and requires a £100k mortgage NRAM will arrange the new mortgage?

beecher2

picardygirl wrote: »

So is that saying the mortgage can be ported to a new property as long as you dont borrow any more money to do so, but is this not a new application and they are not doing new applications/mortgages for NRAM customers ? So if Mr Joe Bloggs has a £100k mortgage with NRAM and sells his house and buys another house and requires a £100k mortgage NRAM will arrange the new mortgage?

It is saying that it is possible for the mortgage to be transferred to a new property - however this isn't automatic, and JB would be assessed again to make sure he could afford it, and the LTV would have to stack up.

mikeburn2009

How did they decide who went to what company?i have been a 'good' customer and not had any issues in paying my mortgage and have been screwed over by the NR. they didnt mention this when I was finding out about trying to port the mortgage and about any additional borrowing. surly they must be breaking some sort of law or rule or is it a case of the 'little guys' getting a bum dael once again.

lottie2313

We are in a similar situation. We are in fixed deal till July 2011. We desperately need to move house as my husband has a new job and is commuting 75 miles each way. Contacted NR before we were put in the ‘bad bank’ and they will not make a decision on whether or not they will let us port the mortgage until my husband is out of his probation period with his job. They did say that they base the decisions on a case by case basis. However, the impression I got is that they will not let us move as our total debt (unsecured and secured) is more that the house is worth although technically we are not in negative equity. We have said that we can pay of some of the unsecured but not all. If we move the mortgage, we will have to pay the early repayments fees and the unsecured will go up to an interest rate of 13%.

In short we are at the hands or Northern rock!!!

beecher2

lottie, all of that sounds normal to me as your debts are greater than the value of the house, and your fixed rate still has some time to run. All I can suggest is posting a Statement of Affairs on the Debt Free Wannabee forum and paying off as much of the loan as is humanly possible. Forget holidays, Sky, eating out - you'll get loads of support on the other forums to find ways of dealing with this.

picardygirl

mikeburn2009 wrote: »

How did they decide who went to what company?i have been a 'good' customer and not had any issues in paying my mortgage and have been screwed over by the NR. they didnt mention this when I was finding out about trying to port the mortgage and about any additional borrowing. surly they must be breaking some sort of law or rule or is it a case of the 'little guys' getting a bum dael once again.

Mikeburn .... read through the latest few pages of the Northern Rock merged mortgages post at the top of the mortgages and endowements forum this will answer your questions.

I wish i knew how to add a link ...... :embarasse

lottie2313

Thanks Beecher, I think we shall have to do as you suggested and maybe not eat!! If they do say no to porting. We may sell our house, pay off the secured and use the remaining cash (which we technically owe NR as unsecured) to put as a deposit on a new house with a different mortgage provider. It will mean that the interest rate on the unsecured with NR goes up and we will be paying out more than what we are now but should be worth it in the long run. What a mess, starting to think is it really worth owning a home!!

beecher2

lottie2313 wrote: »

Thanks Beecher, I think we shall have to do as you suggested and maybe not eat!! If they do say no to porting. We may sell our house, pay off the secured and use the remaining cash (which we technically owe NR as unsecured) to put as a deposit on a new house with a different mortgage provider. It will mean that the interest rate on the unsecured with NR goes up and we will be paying out more than what we are now but should be worth it in the long run. What a mess, starting to think is it really worth owning a home!!

Just remember you'll need to pay an Early Repayment Charge if you do this before July 2011. Is selling up, paying off the loan and renting for a while an option?

lottie2313

beecher2 wrote: »

Just remember you'll need to pay an Early Repayment Charge if you do this before July 2011. Is selling up, paying off the loan and renting for a while an option?

That is plan B and to honest the cost of renting would be a lot cheaper so we could save £200 plus a month and live in a bigger property. However, we were thinking it would be better to get another mortgage now (if NR say no to porting) whilst we have two incomes coming in as we are thinking about having children. Shared equity is another option after renting and if we didn’t pay of the unsecured to NR well could put a big deposit down.

VIGILANT22

mikeburn2009 wrote: »

surly they must be breaking some sort of law or rule or is it a case of the 'little guys' getting a bum dael once again.

Why, what have they done?