Advice Please - Northern Rock Draw Down

ajb19

Hello

I have recently purchased a property abroad by extending my mortgage with Northern Rock and drawing down funds as required. With the current situation with them, should I draw down the remaing funds now and stick this into a high interest account or leave things as they are on the basis that I will still be able to draw down the remaining funds regardless of there future owner.

I am concerned that whoever acquires the business may not honour existing arrangements like this which would leave me trying to organise access to new funds at short notice. The final payment is due on January 2008.

I would welcome peoples thoughts on the above.

NorthernLad_2

Your mortgage contract is legally binding on both yourself and any other company who may or may not take over your mortgage. Your mortgage contract includes the flexible features such as the draw down you referred to and will be carried forward to a company who took over NR's mortgage book.

ajb19

Hello

Thanks for the reply, I did assume that was the case but, inline with the savers that rushed to withdraw their savings, I have beceome very cynical about big organisations honouring contracts etc.

Dan_Collins_2

I would check the small print but Northern Rock arent going to fall a part. If they are brought out they will be kept as they are. They are a great lender so any financial group buying them would be crazy not to take advantage of them! Do you have the advance agree or is it due to overpayments?

ajb19

Thanks for the reply, the draw down is part of an agreed contract not overpayments.

From the sounds of things I should be ok. Will stop panicing now.