Whats the latest on Nothern Rock

pennypinching_2

I havent been on for a while so was just wondering what was happening with NR.

I have a current mortgage with NR and I have a new mortgage agreed in principle until 12 oct.

My new mortgage was for an additional 57K but as I havent sold my house yet was wondering if I would still get new mortgage with them after 12 Oct.

Dan_Collins_2

Call them to check but shares are up! I am lucky to have a good relationship with them, they are very positive and will come back fighting!

pennypinching_2

Thanks that sounds promising!

However as I havent sold my house yet I dont want to bother them, but I do have a viewing this evening...so fingers crossed!

So has anybody had any problems getting a NR mortgage?

HelpWhereIcan

Northern Rock are still offering mortgages (and have been all along).

They have tightened up a bit on criteria, mainly on the amount they will lend but are still relatively generous.

Their rates are also slightly less competitive, but having said that they have been for much of this year.

There have been no reports of Northern Rock failing to honour mortgage offers etc and, although I have not used them recently, I have been told that their admin is business as usual (read into that what you will).

The main effect it will have on you is the potential loan amount they will give you. If you were looking for an amount that would require an 'enhanced income multiple' (ie would only be available on a fixed rate of 5 years or more) they have removed this part of their offering wef 3/10.

However, as you have an agreement in principle that predates that, you will have till the 12/10 (the expiry date of your AIP) to submit an application on that basis. If you submit one after then, they will only offer the maximum amount available under their current criteria.

pennypinching_2

Thanks for that. I understand that they may not loan me as much but will they will still honour my current rate of 4.75%?

I cant swap lenders as I have almost 4k to pay in penalties!

kd811

it's business as usual at NR and if you are transferring your current deal at 4.75% to your new property this rate will still stand until the end of the fixed rate period.
As mentioned in the earlier post the amount they lend will only be guaranteed until 12/10 at which point you will need a new AIP.