Is a mortgage with ING direct safe?

misterbikeman

Hi

I am a first time buyer and enjoying tempestuous journey of getting a mortgage.

Here is a brief summary of my situation:

I am presented with 3 different mortgages, 2 of which I can get instantly -

Halifax @ 2.29+base
INGdirect @ 1.89+base

... and 1 that I will have to wait 2 months for, due to them needing more from my accountant, including 2 months of wage slips -

Barclays @ 1.99+base

The INGdirect seems like the obvious choice, however, I have no real idea of whether they are a safe institution - ie. can they collapse as other banks have done?

Halifax, I presume, are a safe bet, but the rate makes the payments significantly higher.

Barclays have the bonus of the low rate, plus, being a banking powerhouse, it feels like a safe option. However, I may well lose the house if I keep them waiting another 2 months.

I'm sure this all seems naive, but I would really appreciate some advice.

Thanks in advance

Rob

kingstreet

On the basis YOU have THEIR money, I'd suggest you have little to worry about.

opinions4u

By "safe" what are you actually concerned about?

maninthestreet

It's the bank that needs to worry about you not re-paying the debt.......

misterbikeman

What an wonderfully swift response. Thank you all.

opinions4u - apologies, I appreciate the question wasn't too clear. I think the worry is, are they likely to collapse?

If they do collapse, what happens to our mortgage?

Also, we may well have difficulty switching to another lender after the initial two year period - do you know what kind of rates INGdirect offer existing customers looking to switch rates? I can't really find this info online.

Many thanks again for your time.

Rob

DVardysShadow

misterbikeman wrote: »

If they do collapse, what happens to our mortgage?

It will be sold to the highest bidder, whom you will pay instead. Or you might get the option to buy it back for less than you owe. Some lenders have got out of the mortgage market and did offer people to do exactly this.

Farmerbob

Why do you think you would difficulty changing mortgage lender after the 2 year period? As long as your credit file is still good and you have paid the mortgage on time there will be nothing to stop you moving lender. Admittedly the banks are in a bad way but their not all going to be bust in 2 years and you wont be able to re-mortgage somewhere else!

I think you should worry more about if you can get a mortgage first, if they do go belly up you wont get a eviction date once the receivers have been called in.