MSE News: Government sells Northern Rock mortgages: what it means for you

KID77

I have just opened a savings account with them as hopefully that will then class me as an existing customer if I am lucky enough to be sold to them.

Diggedy

I am one of those trapped due to the high borrowing and the house price fall. I also have a poor credit rating as im still recovering financially from 2008.
My main concern is the new company hiking interest rates to unaffordable levels. My understanding is there's nothing stopping them, am I correct?

Thrugelmir

Diggedy wrote: »

My main concern is the new company hiking interest rates to unaffordable levels. My understanding is there's nothing stopping them, am I correct?

What would they achieve by hiking interest rates. They'll be seeking full repayment of the debt. Not causing borrowers to default unnecessarily. Thereby creating additional cost for themselves.

Pincher

Whoever buys the mortgage book will do so at a discount, so they already enjoy the security of a tidy profit. There is always the possibility of excessive greed, of course.

IainHL

tonyh66 wrote: »

i think its on the bbc website, have a look in the loans section on here for the thread northern rock loans over £25k, there is a link on the last page of that.

here it is http://www.bbc.co.uk/news/business-34806370
.
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Yes, but. Quoting from that BBC article:

Customers with former Northern Rock mortgages or loans do not need to take any action and there will be no changes to terms and conditions.

Analysis: Kevin Peachey, personal finance reporter

The vast majority of former Northern Rock mortgage holders have been unable to switch to a better deal because lenders have not been keen to take them on.
Many have been paying a relatively high standard variable rate of 4.79%.
Now thousands will be moved to TSB with unchanged terms and rates.
However, existing TSB customers get a better deal - paying a variable rate of 3.99% if they took out a mortgage after June 2010, or 2.5% if they had one before then.
"[New] customers will of course be able to speak to TSB about the options available to them, as they can do today," a TSB spokesman said.
But there is no automatic switch to a cheaper variable rate (my emphasis).

Thrugelmir

Pincher wrote: »

Whoever buys the mortgage book will do so at a discount, so they already enjoy the security of a tidy profit. There is always the possibility of excessive greed, of course.

It's a punt for the buyer. The mortgage book will be discounted for a reason.

At least the sale booked a profit for the UK taxpayer.

KID77

I rung NRAM yesterday to ask if they can tell me whether my mortgage is one that has been sold or not, she said that hadn't been decided yet and I would receive a letter in due course but she couldn't tell me when i would receive it.

ptwparkinson

We had a business loan for properties from the Yorkshire Bank who are owned by the NAB

---

they called in our £ 166,000.00 loan a few years ago because it had expired . We made offers of £ 120,000 ,£ 130,000 , £ 140,000 and £ 145,000 ---- all were rejected ( we believe that the banks caused this depression and that they should be helping their customers -- however ) ---- we were told earlier this year that the debt was being purchased by a company by Cerberus which is run by Stephen Feinberg an American --- read stuff on the net about him --- a whistleblower told me that they paid about £ 85,000 for our debt -- so why did the Yorkshire Bank take our offer --- how much did they lose ???
Anyway --- to cut a long story short --- Cerberus/Promontorio Henrico are bneing managed by Engage Commericial --- they will not do any deals they want paid in full ---- week before last they said that the debt was now £ 171,000 --- then on Thursday last week our broker rang me and said that they had suddenly demanded an extra £ 12,000.00 in extension fees --- we had the money in re-mortgage money to pay them the £ 171,000 and now we have to raise this extra £ 12,000 --- one more thing --- the company has a special purpose vehicle set up in the Netherlands so that they don`t have to pay British tax ---- what a complete rip off !!!!!!!

ptwparkinson

should have said --- why did the Yorkshire Bank NOT take our offer

ptwparkinson

These people are brutal and totally merciless ---- they want full payment -- otherwise they will send in the receivers and then of course it`s all over ---- all of the profits that they are generating are being taken out of the British economy and they are not paying UK tax --- how can this be right ???