Is my Northern Rock fixed rate safe???

da644

Hi.

I have a 7 year fixed rate mortgage from the Northern Rock which still has another 5 years to run. If they are purchased by another bank, which is looking more and more likely as their share price falls to the floor, will my fixed rate be safe or can a new owner change me to another rate and/or type of mortgage???

Anyone know?

Also, if no-one buys them and they go bust what happens then? I assume that part of the value of my house is an asset of the business??? No-one in the media seems to be talking about what happens to the mortgage customer only the savers, which is a little strange as the majority of the NR business is mortgages and not saving...

Kind regards,

Andrew.

Debs12

I have to agree that all the media is about savers not the vast majority of there customers - mortgage payers.

We are about to move on the 19th October..taking our mortgage with additional borrowing with us. I think we are safe...but what happens if they do go bust and they have no money to give us on the 19th?

I am sure your fixed rate is fine...who ever buys them or their liquidators will carry on wanting to recieve your payments and will honour your deal.

da644

Hi Debs12,

Good luck with that one, I'm sure it will be ok.

My main concern is not that they will not carry on wanting to receive my payments, its that they will scrap my good rate, move my mortgage to a variable rate and my mortgage payment will increase by several hundreds pounds and they make me go bust as well!!!

Kind regards,

Andrew.

da644

That is what I thought, but you know what contract are like... not worth the paper they are written on!!! Also there is a ton of legal small print bull on the contract that mean nothing to no man!!!

Is there anything in law or from the FSA that guarantees that?

Kind regards,

Andrew.

BrandNewDay

I really do think that if some other entity buys your mortgage, they'll be buying your agreement. All they'd do is pay for the privelege of receiving your mortgage payments. They'll be buying the contract, the investment. Get it? If they don't like the looks of the agreement, they won't buy it. If the agreement is not good value - you're really subprime and the house is in negative equity, for example - then the agreement will be worth less and so would be bought at a discount. This takes place between MR and whomever would buy it.

Becks045

We are transferring our residential mortgage to a buy-to-let with them and getting additional borrowings. I called and asked them and they said all is fine and the funds are there ready for us.

We also are taking out a new mortgage with them and are due to complete in a few weeks and have been told that the funds are ready for us.

Fingers crossed!

Worse case, if someone does buy them, they will buy the mortgage book of customers so we'd just be paying someone else and any fixed rates will be kept.