Northern Rock Rip off on further advances

VIGILANT22

Mac600 wrote: »

5% above their standard variable rate is just pure profiteering.

Don't think you'd find a secured loan for less anywhere else......

Dan_1976

I think NR's policy to lender FA's on the existing product started with a technical glitch and was never policy.

Lenders can and will change policy to suit the bussiness needs. I am all for it if it means they make a load of money and pay us back!

Then again, business' trying to make a profit, whatever next!!

darden36

I think you must now be an exclusive member of NR AM as I recieved the same letter in January. I, like you, wanted to borrow more on my existing mortgage but have been informed that as I now form part of the (bad/toxic) bank, I am not eligible for any further borrowing and cannot transfer to a new deal (in NR).
I am not so sure if NR has acted completely fairly. My view is that whilst nothing has changed in terms of your current borrowing conditions they have in effect changed the terms and conditions of the bank within which your mortgage resides which could be possibly argued is a breach of contract. They have basically got you by the proverbials and are forcing every customer within NR AM to sit out their current mortgage (unless you're willing to pay out extortionate redemption penalty and transfer out). Further more the bank did not clarify under what critera mortgage holders were divided between the two new banks. The fact the NR went down the pans shouldn't be at the expense of the average mortgage holder.
I am planning to consider going to the FSA to seek further clarification to understand (a) if they are able to do what they have done legally and (b) if not, what can be done about it

VIGILANT22

darden36

What change of contract?...

exclusive member of NR AM...:)

As for the FSA...don't waste yr money on a stamp...........

_Andy_

darden36 wrote: »

extortionate redemption penalty

Why is it 'extortionate' and if you felt it was extortionate why did you take the mortgage with them?

MissMoneypenny

dunstonh wrote: »

There is a list a mile long following the credit crunch.

It's really the Housing Crisis (people walking away from their debts).

The dotcom crisis was called the dotcom crisis, but this government prefer to spin the housing crisis as a different name.

dunstonh

My view is that whilst nothing has changed in terms of your current borrowing conditions they have in effect changed the terms and conditions of the bank within which your mortgage resides which could be possibly argued is a breach of contract.

So, no rules or terms have been breached on your contract but you think a change of owner and logo would be considered a breach? Good luck with that!

They have basically got you by the proverbials and are forcing every customer within NR AM to sit out their current mortgage (unless you're willing to pay out extortionate redemption penalty and transfer out)

You mean they are honouring the terms of the mortgages agreed as you would expect but you want to them to waive fees if you wish to break the contract.

Further more the bank did not clarify under what critera mortgage holders were divided between the two new banks. The fact the NR went down the pans shouldn't be at the expense of the average mortgage holder.

Of course, the alternative for this would have been for the failed lender not to get any protection and then call in the debts of all the borrowers. Which would you prefer?

I am planning to consider going to the FSA to seek further clarification to understand (a) if they are able to do what they have done legally and (b) if not, what can be done about it

FSA dont deal with consumer complaints. They will take your comments and forward them onto NRAM. If you decide to complain to the FOS, they will also forward your comments on to NRAM. If you dont like the NRAM outcome then you can go to the FOS but they will tell you that they do not get involved in corporate decisions where your contract isn't being broken (after making you wait about 9 months first).

flammable999

All I can say is at least you got offered an advance! I just phoned up my lender and it was a no-go.

Their reason was down to my income because the income multipliers have come down which is fair enough, a lot of lenders have reduced their multipliers.

WHat I am peeved off is they didnt take my monthly affordabilty, my conduct of the mortgage thus far or my equity in the house (35%) into account at all!

VIGILANT22

flammable999 wrote: »

All I can say is at least you got offered an advance! I just phoned up my lender and it was a no-go.

Their reason was down to my income because the income multipliers have come down which is fair enough, a lot of lenders have reduced their multipliers.

WHat I am peeved off is they didnt take my monthly affordabilty, my conduct of the mortgage thus far or my equity in the house (35%) into account at all!

I think redstone should have been more honest with you.......

ILW

Conrad wrote: »

They are treating you fairly on your existing deal - why on earth should we necessarily lenders should offer competetive other services / add on products?

Like saying I'm damned cross audi dont do cheap caravans.

Get a Q7, they are so bloody big you would not need a caravan.