Concerned Northern Rock Customer

lawdevice

Hi Everyone,

I'd like to know what our options are going to be when our Northern Rock mortgage comes to an end in April next year (April 2011),

In April 2006 my wife and I bought a run-down old house for £130,000.

Here are the mortgage stats...

• 5 year fixed rate mortgage
• 5.89%
• 35 year term
• £105.533.07 secured
• £29,635 unsecured
• That's £135,168.07 in total
  

We've still got a some major parts of the house to finish (new boiler, kitchen, bathroom, and 2 bedrooms to decorate) but we've really made the house a much nicer place to be. An estate agent friend of mine says it's probably worth around £130,000 at the moment (but would be hard to sell in its half finished state.)

I have around £2,500 debt on a credit card (which I'm trying to pay £500 off a month) and an Egg loan that finishes next year.

I'm pushing to get the house finished. We'll have a new boiler fitted in the next few months and I want to try and fit the kitchen and bathroom myself towards the end of the year. So that could be around £7,500 that I'll need to put into the house

I am right in trying to get the house finished aren't I? (Bearing in mind it's putting us even more in debt).

What will our options be in April 2011? We'll never get a Mortgage like the one we currently have will we?

We aren't afraid of selling our house next year (hopefully for slightly more than the £135,000 we owe Northern Rock)

Thanks for reading,
Dave

VIGILANT22

Why are you considering selling your house?

lawdevice

VIGILANT22 wrote: »

Why are you considering selling your house?

We aren't considering selling our house. It's just option that we're open to.

VIGILANT22

You will go on to the svr when your deal comes to an end...you're also going to have more cash with cc and loan paid off...so you'll be able to overpay and your equity will have (hopefully) increased....

lawdevice

how much extra are people typically paying when they switch to SVR?

hopefully i'll have paid egg and cc off but i'l probably owe money for the bathroom/kitchen/boiler etc (around £7500 at a rough estimate).

thanks for your reply.

lawdevice

...also how will increased equity help us if we don't plan on selling the house? Sorry, i'm a n00b at all this.

VIGILANT22

You can pay as much as you can afford....If you had spare cash you could do it now NR mortgages allow for this.

Are you upto date with the structure of your mortgage and the situation at NR

Radiantsoul

Increased equity will mean you ought to be able to remortgage at a lower rate.

If you go onto the SVR you will find it is slightly lower than your current rate.

dasilva_2

lawdevice wrote: »

...also how will increased equity help us if we don't plan on selling the house? Sorry, i'm a n00b at all this.

Because with more equity in the house you will ultimately be able to get a mortgage offer away from Northern Rock. That is of course subject to your credit history.

lawdevice

VIGILANT22 wrote: »

You can pay as much as you can afford....If you had spare cash you could do it now NR mortgages allow for this.

Are you upto date with the structure of your mortgage and the situation at NR

what i meant was when people are moved to SVR how much higher does their minimum payment go up by? We're paying around £770 a month at the moment.

we are being moved to NRAM

VIGILANT22

lawdevice wrote: »

...also how will increased equity help us if we don't plan on selling the house? Sorry, i'm a n00b at all this.

If the value goes up what with improvements/market and becomes 140k and you owe 135k