Feeling abandoned by Northern Rock

klpy

Hi All,

Back in 2007, I purchased my first home using the northern rock 125% mortagage. Being 27 at the time and trying to do my independent thing, i was worried over bills and fixed at 6.5% APR for 5 years and opted for interest only.

At the time, my property was valued at £123k. I was given a £120k mortgage with a £26k unsecured loan.
I am due to come out of the fixed period in june next year and to be honest, I am really concerned over the APR that Northern Rock could put the mortage up to (in an attempt to move the business) and currently I am struggiling to find a mortagage advisor that will talk to me due to the current position I am in.

Unlike some others, I do not have any further savings or capital to put into the property and would like to be smarter around my next move and make it repayment etc, but I am severly in negative equity.

Im sure there are millions of people like me out there. Are other people experiencing the same problem? does anyone have a cunning plan?

Any help will be greatly appreciated. If it helps, I have no other debts and an excellent credit rating.

Thank you

Thrugelmir

Are you with NR (new) or NRAM?

Makes no little difference but will affect the answers you receive.

klpy

Thanks for advise Thrugelmir, i was originally with Northern Rock, but this bt debt was transitioned to NRAM. I have also never missed a payment or been late etc.

Thanks:p

Thrugelmir

Then you have no options other than to drop onto the SVR at the end of the term. NRAM no longer offers new mortgage products. The interest rate on the SVR is 4.79%.

NRAM will not force force you to move your mortgage so no worries on that score. There are no remortgaging options to other lenders available at the current time.

As difficult as it may seem and be. Somehow you need to start repaying the capital balance owed. As being on interest only is akin to renting the property.

So no cunning plan. Just bloody hard work. I'm afraid to say.

Give yourself a kick for not repaying anything in 4 years. As less capital owed equals less interest charged. Slow to start with but over time does improve.

beecher2

All you can do is overpay as much as possible - if you post a Statement of Affairs on the Debt Free Wannabe forums, you'll get help with budgeting and advice on how to squeeze every last penny from your budget, to go towards making overpayments towards your mortgage. Ideally the overpayments should be quite substantially more than the payments of a repayment mortgage would be. You're not going to be able to get a deal elsewhere until you have a 90% LTV at the very most.