Rate Hike Refusal

Broke_and_sinking_quickly

Hi All

I am with the original Northern Rock, and have been told that i cannot have a new deal with them. I am on a variable rate, which at the moment is ok.

My worry is that as soon as base rates go up, so does my Mortgage.

Unfortunately, due to the current economic nightmare, i have had to take a massive pay cut, and cannot re-mortgage.

Does anybody know (maybe Mr Lewis can help here) if the rules in place on credit Cards would also apply to Mortgages??

I look ofrward to your help on this..... life is a little worring at the moment.

Cheers

BLT_2

Broke_and_sinking_quickly wrote: »

Hi All

I am with the original Northern Rock, and have been told that i cannot have a new deal with them. I am on a variable rate, which at the moment is ok.

My worry is that as soon as base rates go up, so does my Mortgage.

Unfortunately, due to the current economic nightmare, i have had to take a massive pay cut, and cannot re-mortgage.

Does anybody know (maybe Mr Lewis can help here) if the rules in place on credit Cards would also apply to Mortgages??

I look ofrward to your help on this..... life is a little worring at the moment.

Cheers

The rules on Credit Card rate hikes and refusals are based upon you closing your account and not using the card anymore. Clearly you cannot close down your mortgage, if this sort of option were available people would not need to take out fixed rate mortgage over defined periods. They would merely take a low rate and refuse rate hikes.

Nice try but I'm afraid you are subject to the vagaries of interest rate hikes on your mortgage

beecher2

Interest rates will go up, and so will your mortgage so you're wise to start thinking about this seriously now. Selling up may well be the best option, but have you looked at renting out a room?

madeupname1

Do you have any spare cash at all? One thing you can do is make overpayments on your mortgage. That way, if interest rates do go up, the interest charged will be on a lower principal (and therefore the amount payable can be kept as low as possible).

BLT_2

madeupname1 wrote: »

Do you have any spare cash at all? One thing you can do is make overpayments on your mortgage. That way, if interest rates do go up, the interest charged will be on a lower principal (and therefore the amount payable can be kept as low as possible).

Given that the OP originally stated that he had taken a massive pay cut and is actually concerned about being able to make payments, I suspect the recommendation that he use 'spare cash' to reduce the capital may raise a wry smile to his face

madeupname1

BLT wrote: »

Given that the OP originally stated that he had taken a massive pay cut and is actually concerned about being able to make payments, I suspect the recommendation that he use 'spare cash' to reduce the capital may raise a wry smile to his face

What a pointless post, but opinions are like a*ses - everyone has one.

I didn't assume that he had spare cash, I asked the question whether he did. The answer may well be no, but it does not hurt to ask. He says he has taken a massive pay cut and that life is worrying, but he also pointed out that things are currently "ok" on a variable rate which means that he currently may have something left over even after his pay cut. Check out the MFW forum to see how little contributions of a few pounds a week can make a big differences.

BLT_2

madeupname1 wrote: »

What a pointless post, but opinions are like a*ses - everyone has one.

.

PSML, a guy comes on a mortgage board stating that he is concerned whether he can afford his mortgage payments after a massive pay cut and you ask him if he has spare cash?

And then call my post pointless.

Perhaps you could do a follow up where you ask him why he doesn't just pay it off which will reduce the impact of any future rate increases :rotfl:

madeupname1

BLT wrote: »

PSML, a guy comes on a mortgage board stating that he is concerned whether he can afford his mortgage payments after a massive pay cut and you ask him if he has spare cash?

And then call my post pointless.

Perhaps you could do a follow up where you ask him why he doesn't just pay it off which will reduce the impact of any future rate increases :rotfl:

Read his post (rather than rewriting it for the purpose of attacking me). OP doesn't say he can't pay his mortgage because of his massive pay cut. He says that he currently can pay his mortgage but he is worried about what will happen if rates rise (presumably because of the impact of his pay cut). Thats a situation that lots of people are in and they are using the current low interest rates to build up overpayments. It may not be an option for him but why does it offend you that I ask? This is the last time I shall waste my time responding to you. OP is worried about his situation and you are hijacking his thread with your silly and yes pointless posts.

Broke_and_sinking_quickly

Hey guys, thanks for the advice - i just thought i'd ask the question as it is a fairly new rule that's in place, and i was wondering whether it could be applied - Never any harm in asking.:A

BLT and MADEUPNAME1 - Please don't get worked up over little 'ole me. I don't have any spare cash - in fact am stuck on Interest only as it is. If any body can offer a job ..............:o

My current situation with NR is as follows:

Norther Rock is now Northern Rock Asset Management PLC, and they are not authorised to agree further lending (which i don't want) or agree to any deals.

My query is because i am not increasing my lending (which i believed to be the case with the cards, and that officially closing the account wasn't actually necessary), I just wondered if the same rules applied.

Any idea where i can find a copy of the actual wordings of the rules??:beer:

ILW

Bottom line is you agreed to a variable rate.
You need to look at others avenues to shield yourself against IR rises.

Broke_and_sinking_quickly

ILW wrote: »

Bottom line is you agreed to a variable rate.
You need to look at others avenues to shield yourself against IR rises.

To a degree i did, but at the same time, i didn't agree to be part of a company that refuses to even discuss the possibility of another deal.

I have looked at other avenues, but due to the current financial situation, my wages being reduced by a little over 15%, coupled with the drop in house prices, and the banks reluctantly lending, I am in a position where i cannot go elsewhere. Believe me, i have looked.