Northern Rock End of Mortgaged Deal (Merged Threads)

dasilva_2

beanielou wrote: »

Whats the loyalty bonus then?

0.25% off the SVR after 7 years.

zipman23

Thousands of homeowners could see their mortgage repayments jump by more than £2,000 a year after Skipton Building Society confirmed it will hike the cost of its standard variable rate (SVR).

The building society, which is the fourth-biggest in the UK, previously promised its 100,000-odd borrowers that its SVR would never be more than 3% above Bank of England base rate, currently 0.5%.
However, in light of “exceptional circumstances”, the mutual says it will remove this ceiling and raise the SVR to 4.95% from 1 March.

The move will add an estimated £180 a month onto the cost of a £150,000 interest-only mortgage. Borrowers who don’t pay by direct debit will see their SVR increase to 5.2% - 4.7% above base rate.


Its started...

VIGILANT22

No...it is continuing, this is not the first........

bexman

VIGILANT22 wrote: »

No...it is continuing, this is not the first........

And two large high street lenders reduced rates today!

enay73

Print friendly version 22 Jan 2010


High street lenders cut rates

State-owned bank Northern Rock and the Post Office both cut the rates charged on a number of their mortgage deals yesterday.
Northern Rock brought down the price of it’s two-year fixed rate mortgage offer from 3.89% to 3.69%.
At the same time Bank of Ireland, which supplies mortgages via the Post Office, reduced the cost of both of its lifetime tracker deals. The rates charged have fallen from 3.29% to 2.99% and from 3.59% to 3.49% depending on the size of customers' deposit.
Bank of Ireland also reduced the price of its five-year fixed rate by 0.5% to 5.25%.
The rate custs were announced on the same day that Skipton Building Society dismayed borrowers and surprised the markets by announcing that it is increasing the Standard Variable Rate it charges more than 60,000 customers from 3.5% to 4.95%.
The move involved invoking an ‘exceptional circumstances’ clause in the lender’s contract with its borrowers, which had promised they would never be charged more than 3.0% above Bank Base Rate.
Northern Rock and the Post Office may well be hoping to attract angry borrowers looking for an alternative to their Skipton SVR mortgage.
Ray Boulger senior technical manager at John Charcol, said: "There will be a lot of disgruntled Skipton customers heading for the door."

enay73

Mortgage lenders cuts rates post Skipton shock

Two big High Street lenders last night reduced their mortgage rates, offering possible alternatives to hard-pressed Skipton Building Society customers still reeling from news of a big increase in their mortgage payments.



22 Jan 2010


Taxpayer-owned Northern Rock and the Post Office both launched a range of cheaper mortgage deals.
Both could take advantage of Skipton's shock decision on Wednesday to increase its standard variable rate (SVR) from 3.5pc to 4.95pc, ripping up an agreement that this rate would not be more than 3pc above the Bank of England base rate.

Skipton, Britain's fifth biggest building society, claimed 'exceptional circumstances' forced it to renege on the deal with thousands of loyal mortgage customers.


But such circumstances have not affected the Bank of Ireland, which offers mortgages for Post Office customers.
On Thursday, it dropped the cost of both its lifetime tracker deals. They have fallen from 3.29pc to 2.99pc and from 3.59pc to 3.49pc depending on the size of customers' deposit. Bank of Ireland also dropped its competitive five-year fixed rate by 0.5pc to 5.25pc at the same time.
Northern Rock, which is publicly-owned, has also tweaked its rates. It has a two-year fixed rate deal of 3.69 pc, down from 3.89pc.
Ray Boulger, at John Charcol, said: 'There will be a lot of disgruntled Skipton customers heading for the door.'

VIGILANT22

bexman wrote: »

And two large high street lenders reduced rates today!

Don't be misguided just because a lender drops rates doesn't mean to say they wont increase svr's!


Nine lenders have increased their SVR while the Bank of England base rate has been held at 0.5%

This year.........

Marsden Building Society, which increased its SVR by 0.46% to 5.95% on January 1.
Mansfield Building Society January 11 when it pushed its SVR up by 0.35% to 5.59%.
This week Skipton.........

enay73

Vigilant22

you know also that northern rock plc and northern rock asset management are still owned by the government and if we remember last year the government asked the lending companies to decrease the SVR.
Now I don't think they would do anything like that to make a public upset and also it would be bad especially in the next coming election.
On my opinion if NR decreased the SVR at the moment it means something good and they wouldn't increase any SVR soon. Also NR wants to get back on track and pay the money to the government and increase SVR wouldn't help at all to get them on track. It would be risky.

enay73

Also in NR has the lowest SVR than others. It might be a good challenge for them to take back the trust from the public and maybe one day to be a good company like it was. Let's see what happens. We can say thousand words at the moment but as the split happened so recently, we should wait at least 6 or 9 months to see something.
In the meantime every single person, who has got a together mortgage, in some way should make an overpayment and perhaps things are going to be better and we could move somewhere else with a better deal in case something is going wrong with NR.
Until you have a fix rate we shouldn't be worried so much until the deal end.
On my personal circumstance I am trying to make overpayments as much I can and since I started last year and compared with the previous years I noticed how much I saved in interests and how much my capital went down.
Just keep focusing and make the best as we can.

VIGILANT22

NR will not decrease SVR.... It is currently 4.79% and if it moves it will be up...to think anything different is.....!!!?????