Advice needed - Northern Rock Mortgage

browndog_2

Me and my girlfriend took out a mortgage together three years ago in april with northern rock
Our fixed rate deal is due to expire in march and we have just rang up northern rock to see about current rates

They have expressed that they no longer offer fixed rate deals and we would be put onto their variable rate of 4.76%
Saving us roughly £100 a month on payments.

However i am looking at the bigger picture of rates rising and was wanting to get into a fixed rate (5 or 3 years) so i can
Be sure of my mortgage payments every month.
But since we bought the house 3 years ago at the height of the ‘house prices’ and for 100% mortgage we are unable to
Remortgage as we are effectively in negative equity

Im sure i seen somewere some type of insurence for variable rate mortgages ?
Is anybody in the same boat or has been in my situation that could offer some advice please

I am quite concerned that rates will rise and i will be unable to afford payments

Please help

Thanks

Jem8472

I am in the same boat. Now going onto the SVR and I will be watching this thread to see what people suggest.

beecher2

Overpay the £100, and anything else you can fling at the mortgage, and try to get out of negative equity. You could post a Statement of Affairs on the Debt Free Wannabe forum to get help on where you could save money on your household budget. Cancel Sky, forget holidays and focus on getting the debt down before interest rates go up. If you overpay by more than £100/month, it also gives you a cushion when rates go up, as you're already used to paying more.

browndog_2

yeah beecher, after a bit of research ive noticed i can reduce my mortgage period by up to 10 years so i think i will over pay.
What do you think NR policys are on over paying every month,?

thanks

beecher2

From what I've read on here you are allowed to have an unlimited amount of overpayments.

browndog_2

so i geuss there is just a charge for a early repayment i.e paying the whole of my mortgage off or remortgaging whilst in a fixed rate?

fidnhilly

I have just called up about my own mortgage as our fixed rate deal comes to an end in April. Ours is with A&L but I was told if we choose the variable we can overpay as much as we like as long as we dont pay the full mortgage off in the term (2 or 3 year option) and theres not much chance of that! I wish!!

browndog_2

thanks hilly, clears things up a bit, im sure most mortgage companies use same rules

Alisonb1975

We have a fixed mortgage with NR coming to an end. We have been able to overpay quite a lot over the last few years. As long as you dont pay the lot off . You can increase your direct debit or ring them and they will take payments by card over the phone. They are very flexible.