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Northern Rock drawdown dilemma
jetfighter
Posts: 249 Forumite
I have a bit of a dilemma.
We are in the process of re-mortgaging with Northern Rock. The timing is rubbish but it just happened to coincide with the end of our previous mortgage term with NationWide. We went through London & Country and Northern Rock was recommended to us as the best deal.
We took out an extra £15,000 to fund a loft conversion. Northern Rock offers flexible mortgages with a so-called "drawdown" feature and the ability to make overpayments of any size, meaning you can borrow extra at the same rate, then re-pay it into your mortgage account until you need it. You can then, with their prior agreement, withdraw it when you do need it.
Our completion date was 13th September, the day the drama erupted. The funds have been delayed but will apparently be coming soon. When we get the funds, our original plan was to re-pay the £15,000 immediately. This is allowed without penalty. We were then going to get the paperwork sorted for our loft conversion, safe in the knowledge that the money would be there when we need it next February/March when the conversion is complete.
Now we don't know what to do. We're worried that if we re-pay the £15,000 we won't get approval to withdraw it again. Considering we took out this particular mortgage based on its drawdown feature, and could potentially have got a better deal elsewhere had this not been a stipulation, we're wondering what to do.
Would it be best to hang onto the £15,000, bearing in mind this would result in higher monthly payments and also paying interest on a big wodge of money we're not even using? (Our cash ISAs are maxed out for this year so we can't stick any of it in them.) Or is there a better plan? Should we risk it, bearing in mind that if March comes and we can't withdraw it, we'll have to find £15,000 from somewhere?
Any advice would be very much appreciated.
We were going to pop into our branch today to ask for advice, but you can imagine the queues. As we're not officially customers yet, it's hard to know who to ask - we're sort of stuck in limbo at the moment.
We are in the process of re-mortgaging with Northern Rock. The timing is rubbish but it just happened to coincide with the end of our previous mortgage term with NationWide. We went through London & Country and Northern Rock was recommended to us as the best deal.
We took out an extra £15,000 to fund a loft conversion. Northern Rock offers flexible mortgages with a so-called "drawdown" feature and the ability to make overpayments of any size, meaning you can borrow extra at the same rate, then re-pay it into your mortgage account until you need it. You can then, with their prior agreement, withdraw it when you do need it.
Our completion date was 13th September, the day the drama erupted. The funds have been delayed but will apparently be coming soon. When we get the funds, our original plan was to re-pay the £15,000 immediately. This is allowed without penalty. We were then going to get the paperwork sorted for our loft conversion, safe in the knowledge that the money would be there when we need it next February/March when the conversion is complete.
Now we don't know what to do. We're worried that if we re-pay the £15,000 we won't get approval to withdraw it again. Considering we took out this particular mortgage based on its drawdown feature, and could potentially have got a better deal elsewhere had this not been a stipulation, we're wondering what to do.
Would it be best to hang onto the £15,000, bearing in mind this would result in higher monthly payments and also paying interest on a big wodge of money we're not even using? (Our cash ISAs are maxed out for this year so we can't stick any of it in them.) Or is there a better plan? Should we risk it, bearing in mind that if March comes and we can't withdraw it, we'll have to find £15,000 from somewhere?
Any advice would be very much appreciated.
We were going to pop into our branch today to ask for advice, but you can imagine the queues. As we're not officially customers yet, it's hard to know who to ask - we're sort of stuck in limbo at the moment. 0
Comments
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Hi there, I just wondered if NR had released your additional funds of £15k?
I can't really offer any advice on your situation but I was under the impression that as they are FSA regulated if that is the product you took/take out, they can't then change the terms.
We are due to get additional borrowings of £15k from NR as we are changing our mortgage with them. They have assured me they have the money and we will get it next week as pre-arranged...thats why I wondered whether you had received your money yet?
We are buying a new house and ours if for the stamp duty so I'm a little worried now in case it doesn't come through!!!!!0 -
It hasn't come through? I have asked about this and the advise on these boards are not to worry NR are business as usual?
Was it just the £15K or was it the money for the house!
We would be hit in the pocket real bad if we did not have the funds on DOE!0
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