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Fixed Rate Mortgage up in December a few questions...
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NikkeiJones
Posts: 66 Forumite
Hi Guys
We took out a Mortgage with Northern Rock almost 5 years ago now and it is due to expire in December this year and I'm feeling anxious as I don't know what to expect. Here's the situation:
We took out a Mortgage and a Loan with Northern Rock, so we were able to pay for the deposit and do the house up. Both the Mortgage and Loan were fixed a 8.9% We have taken the holidays we were entitled to as we were struggling so we haven't made as much headway as we would like, but things are getting better and we are slowly making progess.
We are very unlikely to be able to remortgage elsewhere as credit cards and debts currently stand at £19,000 which we have reduced from £25,000 over the last year or so.
So what is the situation with our current provider now? Do they continue our mortgage after this fixed five years or can they decline to continue our mortgage?
Will our payments likely increase or decrease (as the lady advised on the phone at Northern Rock) if our mortgage does continue?
Do we have any other options?
Sorry for so many questions but I find all of this confusing!
Many Thanks
Nikkei
We took out a Mortgage with Northern Rock almost 5 years ago now and it is due to expire in December this year and I'm feeling anxious as I don't know what to expect. Here's the situation:
We took out a Mortgage and a Loan with Northern Rock, so we were able to pay for the deposit and do the house up. Both the Mortgage and Loan were fixed a 8.9% We have taken the holidays we were entitled to as we were struggling so we haven't made as much headway as we would like, but things are getting better and we are slowly making progess.
We are very unlikely to be able to remortgage elsewhere as credit cards and debts currently stand at £19,000 which we have reduced from £25,000 over the last year or so.
So what is the situation with our current provider now? Do they continue our mortgage after this fixed five years or can they decline to continue our mortgage?
Will our payments likely increase or decrease (as the lady advised on the phone at Northern Rock) if our mortgage does continue?
Do we have any other options?
Sorry for so many questions but I find all of this confusing!
Many Thanks
Nikkei
0
Comments
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Your mortgage will continue, it's only the product which ends. NRAM's reversion rate is their standard variable rate, currently 4.79%. This can rise or fall as interest rates change.
I do not believe they offer any other options and if you are unable to remortgage, you're stuck where you are for now.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
In addition to the reply above, please stop using credit. You will soon be in a position where you can start attacking your debt.
Don't waste it.0 -
Thanks for your replies guys, makes me feel a bit easier about the whole situation. Opinions4u, we fully intend to get rid of all debt in the next two years and cards are being cut up as we go. Things are looking brighter!0
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Go onto Debt Free Wannabee for help with dealing with your debts - they can give some great advice over there if you post a Statement of Affairs0
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