Northern Rock End of Mortgaged Deal (Merged Threads)

VIGILANT22

"bad bank" Northern Rock (Asset Management) plc
It will continue to service mortgages however it does not offer any new products or provide the option of additional borrowing to its existing customers.
So when yr mortgage deal is up you either remain on the svr or remortgage to another lender...That is as long as you're not in negative equity or above 90% LTV as currently you'd struggle to secure a new deal...same if your credit history is affected........

MarkyMarkD

It totally makes sense that what VIGILANT22 states is the case ... if you can't remortgage anywhere else, then there's no logic in NRAM offering you a deal cheaper than SVR. And then it also follows that there's no logic in that SVR being anything like a cheap deal ... because if it is cheap, it's unfairly good value for the risk you present to them.

Yorkie1

I first spoke to my mortgage advisor back in November, and a NR product was the best for me at that point (though I was not then in a position to proceed to mortgage in princple).

I will be speaking to him again in the next week hopefully, and assuming that a/the NR product still appears to be the most competitive, do people have any views about taking out a mortgage with NR? Given the split in business I imagine it would have to be with the plc not the AM side.

VIGILANT22

You would be offered a mortgage with Northern Rock plc ...the other is asset management...

NR mortgages have great flexibilty features.......

Yorkie1

Many thanks Vigilant22.

I do like the flexibility of overpayments, and relatively low product fee.

I guess the plc will want to continue to have good business in prospect of being sold at some point in the future, so no real need to worry about its lending policy or future (no more than any other lender)?

Also trying to second-guess the likely SVR of the new bank but nobody has a crystal ball there!

VIGILANT22

Yorkie1 wrote: »

Many thanks Vigilant22.

I do like the flexibility of overpayments, and relatively low product fee.

I guess the plc will want to continue to have good business in prospect of being sold at some point in the future, so no real need to worry about its lending policy or future (no more than any other lender)?

Also trying to second-guess the likely SVR of the new bank but nobody has a crystal ball there!

You appear clued up so no probs...Hopefully Mr Branson will soon be the new boss....:)

b0rker

Yorkie1 wrote: »

I first spoke to my mortgage advisor back in November, and a NR product was the best for me at that point (though I was not then in a position to proceed to mortgage in princple).

I will be speaking to him again in the next week hopefully, and assuming that a/the NR product still appears to be the most competitive, do people have any views about taking out a mortgage with NR? Given the split in business I imagine it would have to be with the plc not the AM side.

Be warey in taking out a mortgage with Northern Rock.

Many of us took out a mortgage with them in good faith prior to 2007.

Now due to their poor practices we find that Northern Rock have dumped us into what is essentially a sub prime situation.

No one who signed up for a Northern Rock mortgage prior to 2007 were under the impression that they were buying into a sub prime lender.

Northern Rock have proven themselves to be inadequate at managing their practices and there is very little to suggest that they will not do so again in the future.

HSBC would get my vote. A cautious bank who seems to have a good grasp of the field in which they perform.

Northern Rock are charlatans and amatuers by comparison.

VIGILANT22

NR have not placed any clients in a sub prime position...that is down to the client themself if they're now sub prime status.....if you've paid your mortgage on time you are not sub prime....So you can remortgage elsewhere in you're unhappy....

b0rker

VIGILANT22 wrote: »

NR have not placed any clients in a sub prime position...that is down to the client themself if they're now sub prime status.....if you've paid your mortgage on time you are not sub prime....So you can remortgage elsewhere in you're unhappy....

Ok excellent news.

If NRAM are not sub prime then there is no reason for them to put up the SVR to cover the extra risk as MarkyMarkD keeps on suggesting.

Thanks for that.

Or do you want it both ways? Do you want to claim that we have not been forced into a sub prime position and them claim that we are in a sub prime position so the SVR should be raised to account for the extra risk?

When we signed up for our mortgages Northern Rock was a highstreet lender with high street lender SVR promises.

Northern Rock have now turned the tables on their customers and bundled 90% of us into a situation where they can potentially increase the SVR to sub prime lending levels.

And the most disgusting thing is that it is THEIR INCOMPETENCE that has caused all of this in the first place.

I wouldn't take out a one pound mortgage with Northern Rock as they would no doubt work out some way to balls it up and then make me pay for THEIR INCOMPETENCE.

zipman23

I wouldn't take out a one pound mortgage with Northern Rock as they would no doubt work out some way to balls it up and then make me pay for THEIR INCOMPETENCE.

Would you really need to take out a £1 mortgage?