Northern Rock Early Repayment charge

Heva

Hi,

Does anyone know of a loop hole with Northern Rock and their ERC?

We took out a 100% mortgage 3 years ago with a 5 year fixed rate. Obviously in hindsight we were foolish and now we are regretting that decision.

We want to move ideally before the fixed term agreement is up but there is no way we can afford it with the ERC of £5000. Our mortgage payments are so high at the moment that we need to remortgage to reduce these but the exit fee is so high that it seems there is no simple answer. We are about to have a family and the need to move to a house is ever increasing whilst we are both still on full wages.


I know at one point these fees were being waivered as the company needed to lose customers but as we are good customers and always pay our mortgage on time I guess there is no insentive to lose our business.

Is there anyway we can negotiate the fee with Northern Rock?

Any advice would be grately received!!


Heather

beecher2

I haven't heard of NR allowing people to avoid ERC, but I may have missed the threads where this was mentioned. Would porting your deal be an option? Again not sure if NR allow this, or not - someone else will tell you.

You're likely to be in negative equity - what sort of savings do you have to pay this off, and do you have a deposit for the house you'd like?

Heva

well if we can sell for what we paid for it, we will only be down the ERC, we do have a deposit of 20% for a house but this will be greatly reduced if we have to incur the ERC and a loss on the sale and possibly affect what type of house and location we can afford.

What does 'porting' the deal mean?

picardygirl

Heva, have a plough through the Northern Rock dedicated thread at the top of the mortgages and endowment forum, this may answer some of your questions.

NRAM were apparently helping people with ERCs up to June 2010, but nothing since AFAIK! But only customers moving house and wanting to borrow more funds ...... but as i said, this all stopped in June.