PLEASE ADVISE - Northern Rock, not seen and FAQ regarding this...

Newleywed_Sarah_Brown

Hi All

This is my first post on the site, but I have been reading it regularly following Northern Rock crisis and in order to get vouchers and discounts as since getting wed in June we both had an amazing urge to 'nest' and staarted looking for a house.

We have found our dream first home and we are due to complete Wednesday next week.

We have a 100% mortgage with Northern Rock agreed, 5% of which is unsecured. This is over 35 years and is 2 years fixed as I am due a good salary increase in 2 years.

I assume that the 'agreement' is fixed and Northern Rock will not refuse to lend this money as contracts are exchanged... (any reassurance here would be appreciated)

My concern is this, the legal team HAVe to have the funds in time in order to facilitate the completion and transfer of funds... but given the current climate and high level of demand of Northern Rock facilities, will this create a delay ina ccessing these funds... this being the case we will incur HIGH interest charges and compensation claim from seller... who would be obliged to recoup these costs? Or is it likely the money will go through with no delay.

I phoned our legal people today who said they had not had any memos or advise regarding this so they assume it is business as usual...

Should I be worried.

Any advice greatly appreciated

Thank you :A

silvercar

I assume that the 'agreement' is fixed and Northern Rock will not refuse to lend this money as contracts are exchanged... (any reassurance here would be appreciated)

This point was put to a mortgage advisor on LBC this morning. The answer was that your offer is safe. In fact it is now guaranteed by the bank of England, so you can really feel reassured.

My concern is this, the legal team HAVe to have the funds in time in order to facilitate the completion and transfer of funds... but given the current climate and high level of demand of Northern Rock facilities, will this create a delay ina ccessing these funds...

Shouldn't cause a delay, after all its not like they have to start searching out enough fivers from the safe to pass the money in cash. The team that deal with completion of loans should be locked away and beavering as normal and not involved in the fracas outside branches. Your solicitor may want to request the money a day early just to be on the safe side, but leave it to him, he is your employed professional, he is aware of the NR fiasco, let him control it.

Newleywed_Sarah_Brown

thank you for your reassurance!

my hubby thinks we bought at the wrong time now because prices may crash... but i think we got in just in time - because i suspect the likelihood of obtaining a 100% mortgage in the future is very limited...

suspect most will be renting so those who bought to let will probably be ok too!