Northern rock and payment break...

dellydaisy

Got our firstmortgage with northern in jul put down a 10k deposit too...
However just to do a few home improvements and ideally buy a car we,d either like to take a payment break or ask them to loan us more money, on a recent valuation our house has gone up by 5k.
So is it too early to ask for a break? and whens the best time to ask for more money?

cheers delly x

toonfish

borrowing money on your house to buy a car is a bad move - you'll be paying for it for 25 years.

Save up.

gillbee

I'm a northern rock customer at the moment and I think you can only take payment breaks if you have been overpaying your mortgage. I'm sure my deal states that I have to have overpayed by a minimum of £500 before I can take a payment break and that any payment break does not exceed the overpayments I have made. Your deal may be different. I also contacted them about a remortgage (at the end of my mortagage term) and the fee's were in excess of £1300!!

I'd have to agree with the previous post. If you have another way of raising the cash then I would avoid borrowing extra over a long period of time. Once you know what fees NR may charge you on freeing up cash you would have a better idea of the overall cost of the loan.

juliesg

i can take a hol break with N/R after 9 months i can take up to 3 months after 3 years

dunstonh

payment breaks should not be considered a holiday break. The lender piles the interest on that you should have paid and you end up paying around 3 times as much over the remaining term of the mortgage. You are effectively put into arrears albeit authorised arrears that wont be on your credit record.

devils_advocate

With every respect, as a taxpayer I now have a small share in your mortgage. I would far rather that you paid off the whole mortgage as quickly as possible, so that the large sums of money that I pay the government can be frittered away on the things that the government usually waste money on, rather than some new black hole.

Don't take this personally, as I would dvise the same to anyone who has borrowed from Northern Rock.

toonfish

devils_advocate wrote: »

With every respect, as a taxpayer I now have a small share in your mortgage. I would far rather that you paid off the whole mortgage as quickly as possible, so that the large sums of money that I pay the government can be frittered away on the things that the government usually waste money on, rather than some new black hole.

Don't take this personally, as I would dvise the same to anyone who has borrowed from Northern Rock.

with every respect this is a load of nonsense, it's hardly being frittered away as NR is having to pay a punitive rate of interest

devils_advocate

toonfish wrote: »

with every respect this is a load of nonsense, it's hardly being frittered away as NR is having to pay a punitive rate of interest

toonfish, the interest accruing would only be punitive if the government forced NR to borrow from them, at rates greater than NR could get in the market. I'm sure that you'll correct me if I'm wrong, but as far as I can see, NR are free to borrow in the market, it's just that no-one is prepared to lend to them, at the rates the government will! NR are therefore getting an off market rate from the government, which is far more beneficial, rather than punitive, as you allege.

Oh, and when will the principal and interest actually be paid back, rather than rolled up into more loans?

dunstonh

Dont tell me that you believed the BBC rubbish that every taxpayer has paid £2k towards Northern Rock.

poppy10_2

Every taxpayer has LOANED £2k to Northern Rock. The expectation is that the goverment will get all that back, as well as a chunky bonus in the form of high itnerest charged to NR. But if they default on the loan and we find out that their "assets" (i.e. their mortgage portfolio) isn't worth enough to cover it, then we are all in big trouble.

Anyway, this is way off-topic. OP, borrowing against your house to pay for a car is a risky game, especially when you only have a small amount of equity. You could end up losing your house.

dunstonh

The taxpayer hasnt loaned £2k each to Northern Rock. That was BBC misrepresentation as they used figures which assumed the Govt would have to pay out in worst case scenario.