Opinions on Northern Rock???

ElSkinto_3

So that I can afford a flat in my area I'm having to go for a 125% mortgage with Northern Rock, can anyone give me opinions on them please? It's fixed for 5 years but you can carry it when you move, has anyone had any problems with this? Any help much appreciated!

:wall:

ElSkinto

UK007BullDog

NR has their niche which is for people who borrow into negative equity.
As long as the new property, your income and any further lending are supported you should not have any problems porting the mortgage to a new property.

You realise that you are doing a VERY costly purchase with NR? They are one of the highest fees chargers in the prime market. Hope you discussed the choice with your broker. 95% will be mortgage and the 30% will be unsecured loan which has to be paid repayment basis. The mortgage part can be interest only.

ElSkinto_3

Thanks for this response. Yeah I'm not keen on doing it but the max I can get with my salary is 88 and it's pretty much impossible to get a 1 bed here for that, then I need to think about furniture etc. I don't have any savings so I don't think any of the regular lenders are an option : (

mhay_3

as bulldog said, fees with NR are particularly high. have you been made aware of any other lenders that do similar deals?

I would maybes also look into a shorter fixed rate i.e a 3 yr one. the reason being that 3yrs is generally enough time for the property value to have risen, and a portion of mortgage to be paid off so that your total LTV is below 95%, allowing you to move onto a deal with a lower rate.

have you discussed any of this with an adviser?

ElSkinto_3

Yeah but he was very Northern-Rock-orientated shall we say! I've actually just spoken to Abbey and they said they will give me up to 97k as the actual mortgage on a fixed rate of just 3 years which is good news :j although it would mean me finding 3% deposit and I'm not sure how easy it would be to get a personal loan to cover that - maybe if I lied and said it was for something else?! The Abbey advisor said they wouldn't loan for that if I specified that was what it was for but if I didn't specify...

mhay_3

good news on the mortgage front then. what is the total balance that you wanted to take in the first place, and what is the property value? Provide you income too and i'll have a quick scout round for you

ElSkinto_3

Brilliant thank you

Income 22k
Properties I'm looking at are Offers Over 60-75 so selling for around 90/95k + (valuations somewhere inbetween) (the joys of the Scottish system)
I've not found one yet but I'm trying to figure out what I can offer for a couple I'm looking at just now.
Biggest problem I have is that all the repayments are around 600 - :eek: !!!

herbiesjp

You could look at rates from 5.39% upwards all with varying fees with different lender, so monthly repayments range from £577 upwards. There are 100% only schemes as you have said there is no deposit.

HTH

mhay_3

Don't know how long you were planning on taking the mortgage over, or your current age, but a term of about 30yrs does look like it will bring the monthly payments down.

I just want to clarify a few points on your last post elskinto

1) The property value (90-95 or 60-75)
2) What mortgage term you've been quoted
3) What size mortgage you would like (including loan)

there may be a couple of different options for you. if you could also provide your age that would be great

thanks

michael

ElSkinto_3

Thank you

I'm 24. I'm buying in Scotland so I've been advised to look at flats that are on at offers over no more than 75 as they are going for about 90+, some well above that. I'm only going to be offering subject to survey so I don't know any valuations to give you as an example but I've been told by a solicitor that they can get properties to 'value-up' accordingly given the offers over figure and what someone actually pays so somewhere inbetween the two.

The term I've been quoted by Northern Rock was fixed rate for 5 years on a 35 yr mortgage. £650 a month including PPI, buildings & contents. 95 as secured and 10.6 as loan.

All I want is repayments that are less than that but my only option I suppose is to try for a flat in need of repair but then I'll end up with loans to do it up which will equal out a bigger mortgage!

It's all so confusing :wall:

hobo123

Have you had a seperate quote for the PPI and insurance as they may not be your best option they will try to sell you it but shop around for best quote. I have the together mortgage and had taken it as 3yr fixed which runs out this year I am moving and they have allowed me to keep the same terms so I dont have an early repayment charge which in theory is good but the rate I am getting is not particularly great bear this in mind when deciding on the term.