Northern Rock fixed rate coming to an end

Just_Peachy

HI all,

my 5 year fixed rate deal with northern rock is due to come to an end in September. Does anyone know what Northern roock will switch the mortgage to and what the new rate is likley to be? I am not really in a position to apply for a new mortgage as i am living on my own now (my partner and i split) and would have to take the mortgage out fully in my name, so i may have no choice but to stay with northern rock.

My house in currently in £12000 negative equity, so i am presuming this would affect my chances of getting a new mortgage deal too?

Any advice is much appreciated.

thanks

_Andy_

Your only option will be to stay with NR, give them a call and they will let you know what rates are available.

Just_Peachy

Thanks for the reply. I have just called Northern Rock and been informed that when the fixed rate ends in Sept we will be put onto their SVR which is currently 4.79%, this means that our repayments would lower by £70ish per month as we are currently on a fixed rate of 6%, however i am very aware that their SVR is likely to go up and my question is - does anyone know the highest the SVR could go to and how much per month it is likely to rise?

Thanks in advance

beecher2

Just_Peachy wrote: »

does anyone know the highest the SVR could go to and how much per month it is likely to rise?

Thanks in advance

There's no cut off point for SVRs and when they start rising is anyone's guess. The 'norm' I think is closer to 7 or 8% but anyone who tells you when, and by how much a month it'll go up by is just guessing. Overpay by what you can now - not much else you can do.

_Andy_

No-one can predict (accurately) what may happen.
The SVR can be anything (by its nature). You can use

https://www.bbc.co.uk/homes/property/mortgagecalculator.shtm

To have a play around with figures to get an idea of how much you might pay for a given interest rate.

Cannon_Fodder

Just_Peachy wrote: »

does anyone know the highest the SVR could go..

15% has been known. But not for a while.

With today's base rate of 0.50%, if it returns to pre-crunch levels one day, say 5% in two years time, that extra 4.5% could mean you are on 8%+. i.e. double...

Overpay with the savings you are making, and anything else you can afford while adhering to the Ts&Cs, in order to ease the amount of negative equity and reduce the capital to make such a future proposition more affordable.