Nothern Rock

jlbradley

We have just been given a mortgage offer from Nothern Rock, for a 2 year fixed rate.

Is it going to be safe to you use them or should we look else where ?

Help.

Elise1309

The news item I just saw (Sky) said they've received funding assistance from the BOE and are definitely not at risk of going bust.

However, on a personal note, I have found NR to be one of the least accomodating or sympathetic companies going, should you run into financial difficulty. They have a company policy (allegedly!) of never granting payment holidays, and there is very limited flexibility over a temporary reduction in payments. Some of their staff are very rude and unprofessional.

I wouldn't recommend them to anyone.

weglawen

I've had a Northern Rock mortgage since 2004 and have taken 3 payments holidays with only one phone call required each time.

Perhaps it depends which kind of mortgage product is taken - I believe a Together mortgage comes with the options for payment holidays as standard - as long as you've kept up with repayments and have 9 consecutive fully paid months. There is even an option for up to 6-months off if required (i.e.maternity help)

The helpfulness of staff and speed with which they've dealt with any of my queries doesn't, of course, mean that Elise1309's experiences have any less validity.

I haven't yet tried to reduce payments, so I really can't comment about that.

I too am concerned about the latest news, but from what I'm reading, it appears that savers with NR should be more concerned than mortgage customers (I could be completely wrong). I'm going to stick with them for now, still have 2-years left on fixed-term.

MortgageMamma

I don't think anyone should get into a panic at this particular moment about Northern Rock. My take on it is that existing borrowers will be ok, but, if their problem obtaining funds continues that they may discontinue marketing high loan to value products. This is becoming the trend with lenders such as future mortgages currently reviewing their high loan to value products, GMAC reducing the loan to values for high risk customers and some lenders withdrawing from high loan to value altogether.

I would hope that if NR are going to withdraw from the high loan to value market that they would honour the existing pipeline, but there is no guarantee - Victoria mortgages went into administration the other day and their pipeline cases have all been given the boot and brokers are trying to place them elsewhere.

roddydogs

As posted elsewhere, ive just tried to withdraw money online-guess what-the site is not working properly-i hope its just coincidence! anyone had any better luck?

MortgageMamma

I'm sure its just coincidence! stay calm

CCCele

tarababe wrote: »

I have a savings bond that matures 31st Oct and am trying to speak to them on the telephone to see if I can withdraw it early. Can't get through and have been on hold for 20min so far.

You will probably find that if you can close it early, you will lose all interest on it. I would take advice of don't panic, Northern Rock is not going to go bust with BoE backing.

Dithering_Dad

This is exactly what will sow the seeds of a housing crash. The banks are exposed and their shareholders will demand action. The banks will therefore stop dealing in sub-prime mortgages and will raise their interest rates to cover their losses.

This will stop FTB's dead in their tracks because they will not be able to get 100% (plus) mortgages and so will have to save up deposits. The raised interest rates will further squeeze the FTBs and BTLs who have over extended themselves, forcing some to offload their houses. There will be no-one to buy these houses so they will have to drop the price. The cycle begins.

The best policy anyone can have is to start paying down their mortgages so they are not exposed. Come, join us on the MFi3 quest on the MFW thread. With the turmoil in the financial markets, shares falling like ninepins, job losses increasing and the world looking like its about to go into recession, it's the safest things to do!

$$$_12

roddydogs wrote: »

As posted elsewhere, ive just tried to withdraw money online-guess what-the site is not working properly-i hope its just coincidence! anyone had any better luck?

According to the FT a lot of people were experiencing the same last night.

My guess is that they are getting a lot more traffic than usual which is slowing things down (the digital equivalent of a teller counting out the pennies really slowly during an old fashioned bank run to give people a bit more time to cool down?).

If you can wait/stay up late - it will probably be better late at night/early in the morning.

FairyElephant_2

I'm now on my 2nd fixed rate mortgage wit hNorthern Rock - another 3 years to go.

I've always found them the BEST mortgage company I have dealt with(and I have enquired with lots of others and had actual mortgages with 5 others in the past - the fact that I remortgaged with NR speaks for itself, as I always moved around in the past!). Staff always polite, speak 'english' not 'financio-babble' and always do what they say they will, on time too! No problems with payment holidays, making overpayments, queries etc.

I was a bit worried at the news this morning, as I have made BIG overpayments on the mortgage but am likely to need some back in the next couple of months! But have decided not to panic - as a previous poster said, if the BOE are backing them then I think it should be OK ( I might be more worried if was an investor, granted!)

The problems seem to be caused by the US markets problems - shame so many UK companies are so heavily involved over there....but that's the problem with international business in our 'shrinking world' I suppose.

MortgageMamma

I agree with some of what you are saying DD I was saying something similar to DH this morning, but I do think its an extremely pessimistic view and something that will take quite some time to happen. I for one hope there is not a house price crash because I will be out of business.