Can Northern rock take my equity?

beanie7

I have a morgage with N.R. If they go bust can they take the money I have made on the house?

silvercar

No!

They have a charge on your property for the money you owe them, they don't own the property.

beanie7

So what is the worst that can happen to me if they go bust?

Turnbull2000

beanie7 wrote: »

I have a morgage with N.R. If they go bust can they take the money I have made on the house?

Are you just being a wind-up merchant, or do you really don't understand what equity is? Anyway...

The equity doesn't actually exist in any form of money - so that's a no. Equity is just a perceived value.

Alternatively, Northern Rock going bust would probably lead to house prices collapsing - so indirectly, that's a yes.

And you haven't "made" any money unless you sell and downsize.

PasturesNew

Nothing will happen to you. There will be nothing fundamentally different.
Just a different name at the top of the paper that your mortgage letters/statements come on.

You will keep paying your mortgage. A letter would come through from some organisation saying "hello ... we own your mortgage now ... keep paying"

It might also say: "Oh ... and we've put the rate up, so from next month you will have to pay an extra few quid"

That's probably about it.

beanie7

Thanks I don't really understand all this I am just woried about what could happen and if I need to act on anything now?

beanie7

Thanks pastures new. What if I wanted to change morgages to a new lender and I was tied into mine for another year but I dont want the higher interest rate? Could I change to a new lender without paying the early repayment fee due to the circumstances?

homer_j_3

if your mortgage were taken over by another lender, your exisiting terms and conditions would not change. If you are on a variable rate product then its possible that your rate may increase but you should have understood this when you agreed to it. If it is a fixed rate then your rate will be honoured.

You will not be allowed to redeem early and avoid the charges associated as you agreed to these when you signed up. If it was deemed that your t&c had been altered (and change of lender will not qualify this) then you may argue it but its unlikely that they would do this!