northern rock mortgage

want2bmortgage3

hi all

i have a property which i paid 140k for nearly 4 years ago, its currently rented out through the deposit guarantee scheme, and the tenant has been in there nearly 6 months.

soon after moving in just before the cold winter we had, the tenant was having problems with condensation/damp and mould started appearing on the newly decorated outside wall. it has become quite bad and her and her kids are all sleeping in the non affected room to keep away from the mould.

anyway after discussing this with the tenant and the council, i have found out my tenant wants to move not only due to the mould but for a bigger garden as well. also i have had enough of this property as its so susceptible to condensation. the council wants me to insulate the wall which i will probably do whether i sell or not.

i have inquired with northern rock and my current loan is about 103k and property is worth around 140-150k. if i sell i will be liable to pay the ERP of £3300 until jan 2011 when this expires. however, if i buy another property then they can transfer the mortgage over and there will only be standard fees.

the problem is they will need to do income checks again and can only lend me 4 x my income. this means that even though i've been paying the mortgage on 103k for 4 years without missing a payment, i may only be able to borrow 80-90k if i move (depending on whether i need to prove overtime or they will take my word for it..)

so if i am correct, if i want to sell and buy somewhere else, it will have to be a cheaper property? it is a standard flexible mortgage but i have consent to let, however the rent income makes no difference to what i can borrow apparently.

if anyone here has time and can make sense of this and advise at all that would be appreciated!

VIGILANT22

What is your exact enquiry/problem/challenge over the Terms & Conditions of your mortgage...

want2bmortgage3

well.... when i got the morgage i had a big deposit so that income wasnt a factor, but now if i transfer to another property then they will do income/credit checks. my income is only approx 18k plus variable overtime.

i am trying to work out what sort of propertys i should be looking at, so what my price range should be for my next property??

VIGILANT22

Quote' am trying to work out what sort of propertys i should be looking at, so what my price range should be for my next property??

The next lender will calcualte that

getmore4less

If you had fixed the problem the tenent would have probably stayed

Why not fix the problem when you first realised it was an issue?

If this is the only problem then fixing and selling sems to be shooting yourself in the foot.

want2bmortgage3

it has been an ongoing issue, i have already done the following:

- condensing tumble dryer
- decent (£100) extractor fan in bathroom
- small dehumidifier (too small)

next on the list:
- cavity wall insulation
- wireless room thermostat for boiler (so temperature doesnt drop below set level)
- radiator in porch area which gets the worse mould

finally the last thing i can think of is extracting the kitchen hob outside but the way it is, it would be difficult as the window goes the whole width of the kitchen and above the window is a lintel and on the front are tiles not just bricks.

added to this problem i want to buy somewhere in a different location, where i would want to live myself. i asked my tenant outright if i proceed to try and improve the property to reduce condensation would she be happy to stay, and she openly admitted she would like to move anyway. so i would be doing her a favour as well.

loopy_lou_6

Dont know if this helps at all but NR are waiving their ERCs at the moment in certain circumstances, because they cant lend people any more money. If your mortgage is now under NR asset management rather than NR then this applies to you. You would have to ring them to get the t & c's. I only found this out by accident btw. Cheeky !!!!!!s!

want2bmortgage3

interesting, can you tell me anymore, will they admit to this on the phone? i'm sure the lady said my mortgage was with the asset management..

loopy_lou_6

Yes they will admit this on the phone, it s totally legitamate, but I did find out by accident, they didnt volunteer this info. I have it in writing here in front of me. Quote" we do not offer any new loans or additional borrowing however we recognise that some customers may wish to take out addotional borrowing and must move to another lender to do this.. Our current policy is that in certain circumstances we will provide a refund of some or all of the ERC and/or help with costs. to apply for this refund you must either:
move home and take out any new mortgage product with Northern Rock PLC within 3 months of redeeming your mortgage with Northern Rock Assett managemagement(this may make you elegible for a refund of upto 50% of the ERC
or
Take out a new mortgage product with any other lender(including Northern Rock PLC)which is at least £3,000 above the total amount that was required to redeem your mortgage with NR Asset management. (this may make you eligible for a refund of up to 100 % of the ERC plus the help with costs if applicable)
If you redeem your mortgage you will be charged the ERC and sent an application form to apply for a refund. This is for a limited time only."
I was told I needed to complete before the 30th of June and send them the paperwork before sept, but that they were reviewing having to extend this offer. I really hope this helps someone

Chris_Michael

Loopy Lou, I can assure you that tens of thousands of people have a similar problem with condensation and it is easy to solve with an appropriately sized dehumidifier. The mistake that most people make is that they buy something too small and are also scared of leaving the machine on permanently throughout the winter months. £150.00 spent on the right machine would remove a large lump of your stress it would seem.

Good luck.

Chris

loopy_lou_6

Chris Michael, it wasnt me who had the problem with condensation, it was want2be mortgagefree, but thanks for your informative reply anyway! I had some friends who rented a house from a landlord and they had this problem and sorted it with a dehumidifier as you say. I think the landlord even knocked some money of the rent as a goodwill gesture for them having to run it. Welcome to MSE!