Trapped in Northern Rock Mortgage until homeless!!!

catfish50

NRAMageddon wrote: »

I do agree to a certain extent with Beecher2 that it isn't necessarily Northern Rocks fault, but in the same breath NR have undoubtedly taken advantage of a lot of naive customers much like myself.

The Treasury agrees with you:

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/3532246/Treasury-admits-Northern-Rock-was-irresponsible.html

http://news.bbc.co.uk/1/hi/business/7734975.stm

Might be worth writing to your MP? Perhaps some sort of deal could be offered by NR to ease your situation, since they claim to be so anxious to help customers caught by the Together mortgages.

NRAMageddon

shortchanged wrote: »

opinions4u, while yes the OP has to take some of the blame in that it was ultimately their decision to take out and sign for the loan.

However a mortgage broker being considered a sort of financial expert by many has given some very dicky advice.

Did some of these brokers not really see the property bubble coming to an end?

To be fair how many young people are really that financially savvy, particularly when it comes to being a first time buyer mortgagee. Many people are expecting expert advice from these people and I feel that is certainly not what some people got.

Hey again, i don't want to bleat on about the mortgage broker as its such an infinitesimally small part of my overall issue, but to address a number points made by a couple of posts I do think it is worthwhile me clarifying what was and what wasn't mentioned by the mortgage broker.

Points made by the mortgage broker.....
1. The value of property was rising, so if we didn't get onto the property ladder now then the chances are we never would be able to buy our own home.
2. If we borrowed more money then we could wrap up all our debts and afford a higher value property (although we initially wanted a lower value mortgage)
3. We are only young and over the duration of the 5 year fixed rate mortgage we would inevitably be earning more money and therefore be in an even better situation then we are now (wow, imagine that!)
4. The value of the property WOULD increase
5. If we keep up the payments over 5 years then we WOULD be offered a better deal at the end of the fixed rate term.

Points mortgage broker didn't make.
1. Having a 150K mortgage against a 135k home is BAD.
2. Our home would have to increase significantly in value to have an option of moving the mortgage at the end of the 5 year deal.
3. If we are unable to change mortgage at the end of the 5 year deal and interest rates go up then we are in a very very very bad situation.
4. The phrase negative equity was never mentioned (although we technically are not in negative equity, the unsecured loan part of the mortgage pretty much impairs us equally)

All this is painfully obvious now, but being a first time buyer and never having a member of the family who had ever owned there own home, I was clearly oblivious to the issues above. I certainly wasn't supplied with good advice from the broker.

Thrugelmir

NRAMageddon wrote: »

All this is painfully obvious now, but being a first time buyer and never having a member of the family who had ever owned there own home, I was clearly oblivious to the issues above. I certainly wasn't supplied with good advice from the broker.

The broker didn't force you to buy the property you choose to buy. You could have bought a cheaper property at the outset.

SouthCoast

Set up to fail.

Published by Citizens Advice December 2007.


http://www.citizensadvice.org.uk/set_up_to_fail-2.htm

NRAMageddon

Thrugelmir wrote: »

The broker didn't force you to buy the property you choose to buy. You could have bought a cheaper property at the outset.

Your right sir, if you read my prior posts I don't think I could stress it any more how this is wholly my fault an nobody else's. My comment above is just addressing a number of queries of what/wasn't said by the broker.

Thrugelmir

NRAMageddon wrote: »

Your right sir, if you read my prior posts I don't think I could stress it any more how this is wholly my fault an nobody else's. My comment above is just addressing a number of queries of what/wasn't said by the broker.

I would suggest you don't linger on the subject to long. Little point in kicking yourself for eternity. Channel your energy into the future.

Speak to NRAM and see what options you have. As its in their interests to assist you. If you could purchase a cheaper property when you move. Then you would reduce the amount of debt you owe. Which means more of your income could be used to repay capital than service the interest.

NRAMageddon

Thrugelmir wrote: »

I would suggest you don't linger on the subject to long. Little point in kicking yourself for eternity. Channel your energy into the future.

Speak to NRAM and see what options you have. As its in their interests to assist you. If you could purchase a cheaper property when you move. Then you would reduce the amount of debt you owe. Which means more of your income could be used to repay capital than service the interest.

Thanks for your suggestion, buying a cheaper property certainly appears to be a sensible option. As for the "little point in kicking yourself for eternity" advice, thanks again and I certainly don't intend to. I think it is really important for me to acknowledge my own mistakes rather than just partition blame on the issues and problems with the industry at that time. Mistakes were made all round, by me and the industry.

ILW

You're not alone, many individuals and a whole industry based many decisions on the basis of high house price inflation, along with an idea that ever increasing personal debt was the way forward. It appears that you were just unlucky with the timing.

Gorgeous_George

In part, in think the OP was a victim. A victim of incompetent valuers/surveyors, incompetent mortgage advisers and incompetent, greed-driven bankers but most of all... a failed education system and incompetent parenting. It isn't really the mortgage that's the problem (yet) but the spending of money that was borrowed to buy trash.

The answer is to dump the mobile phone(s) and the rest of the latest generation's 'must haves', sell whatever is saleable - including the flat and start again with so much more wisdom behind you. Teach your children to spend 1p less than they earn and the debt-junkie cycle will be broken.

GG

NRAMageddon

Gorgeous_George wrote: »

In part, in think the OP was a victim. A victim of incompetent valuers/surveyors, incompetent mortgage advisers and incompetent, greed-driven bankers but most of all... a failed education system and incompetent parenting.

Hah, harsh, but actually I couldn't agree more. I don't necessarily blame my parents because they cant be expected to give advice on something they haven't had experience of. I do completely agree that the education system is to blame for my lack of financial nous.