Northern Rock Together - Remortgage

jay_w_uk

Has anyone recently remortgaged from one together mortgage to another?

Our 2 year fixed rate together mortgage is almost up, and we're wanting to continue with the product. However, the best fixed rate they seem to have is 7.69% - which would put our payments up £200.

We have no issues with switching, but our unsecured loan part of the mortgage is an issue obviously. Is there an equivalent out there or are we stuck?

sarkin

why are you looking to stay with Northen Rock That rate is rubbish.I am guessing that you are ftb looking to remortgage and your property has not gone up in value enough to remortgage to another lender, in which case you are well and truly stuck.

Jonbvn

Without doubt that rate is truly awful - more than most SVR's!

There is an article in the Times today highlighting the fact that NR mortgages are now very uncompetitive. If possible, you really should be looking to remortgage to another lender.

Dan_Collins_2

You need to get a WoM broker to help you. There are other 100% plus lenders that will take you on and you should be look at around the 6.5%ish mark depending on you and your mortgage. If you have at least 5-10% equity including the unsecured you will be able to repay the unsec also, if you dont repay the unsecured they wack a huge loading rate on the loan!

jay_w_uk

Not FTBs no.

We took out the extra cash to cover home improvements and clear some debts. Plus, we had a baby and NR offered a 6month payment holiday.

Situation is basically as we stand we have £142 secured (95% of house price when bought) and £22.5k unsecured.

Our problem is basically getting the lot covered by another lender while keeping payments to around £900.

PS, I referred to continuing on the same deal conditionally on them keeping our rate at around it's current 5.89%.

luckyfool

jay_w_uk wrote: »

PS, I referred to continuing on the same deal conditionally on them keeping our rate at around it's current 5.89%.

Northern Rock could not agree to doing this as it would make no sense for them. They are currently borrowing money from the Bank of England at 6.75% (over £20 billion of it). If they cannot get more than this rate from you then they are better off getting their money back through you remortgaging elsewhere.

Leon_W

There are also "mortgage review" fees and new "product fees" to consider when taking out a new deal with NR. The thing is, at this point in time, they would rather see borrowers redeem their mortgages, move away, and reduce their own overdraft !

I would agree with Dan and sarkin. If it's possible then switch lender.

All the best.

jay_w_uk

I reckon I'll get a broker involved.

It seems Birmingham Midshires (Hbos) offer a similar product.

When we last shuffled the mortgage (porting it to our new house) the house was worth 5k more than we paid for it. Hopefully, 6-8k will therefore have been written off our 'negative equity' by now so it should help (ie higher mortgage but less u/s loan).

I rang NR but they are busy dealing with customers surprise surprise.


Anyone know of other 125% lenders?

luckyfool

BM Solutions as you have mentioned, Coventry Building Society through their broker arm Godiva Mortgages, Alliance and Leicester. Abbey also did/do a 125% pilot through branches only, though I would steer clear as the extra loan is also secured against the property so not that attractive.

The first 3 options above do have a reputation for having slightly tighter credit scores than Northern Rock, but if you have maintained credit well then it shouldnt present too much of a problem.

jay_w_uk

At last check our score was good/very good (951 I think). Since then we've had a mortgage credit check and a couple of late (a week at most) payments while we waited for the cheque and cleared cards instead of making the monthly payment - hopefully should still be decent score.

sarkin

You do need to be clean as a whistle for these deals to go through as the risk to the lender is high, Good luck hope you get the deal that you want.