Northern Rock End of Mortgaged Deal (Merged Threads)

Somerset

MarkyMarkD wrote: »

I am not saying that NRAM's borrowers are sub prime. But on any rational measure they are higher risk than most lenders' portfolios - high LTV is generally an indicator of risk; high income multiples are generally an indicator of risk. In aggregate, NRAM's mortgage book will be riskier than other mainstream lenders, and it will incur higher losses. Therefore, all things being equal, it should charge higher rates - whether that's a higher SVR, or higher product switch rates (if indeed they are available).

It is slightly strange that those who have benefitted from under-priced mortgages (for the level of risk they represented), are now complaining that it is not their fault and that they shouldn't bear the cost of setting things right.

I do actually take on board what you have said but all the things you've mentioned : high LTV, high income multiples - do you have any verifiable stats of the breakdown of the NR portfolio vs say HBOS ? Or link ? Or is it just a unfounded perception of the book ? It's a genuine question. Because I suspect with the loans being 'lumped' together into blocks as security for further funding - nobody has a clue what's 'good' or 'bad' or what the quality really is. I think the powers that be are winging it and assuming 'it'll all come out in the wash'.

I'm a consumer not a politician or a banker. I signed up with NRplc not GMAC. I don't have a high LTV or high multiple and didn't get an ''under priced mortgage''. I will hopefully have options when my fix ends (working on it now) but it's an uncomfortable situation to be in. And truthfully I think the powers that be are making a pigs ear out of sorting it out, and generating a lot of anxiety and hostility, which they don't seem to care a jot about.

Mary_Hartnell

dasilva wrote: »

Mary, I managed to use the editing, thank you. Firefox may not realise I am posting rubbish, but I am sure some readers think I am.
(by the way it tells me realise is realize.)

The dictionary is one in a library of "plug-ins"
[Property Bee is useful if you are in the housing market]
Fortunately I have a son who looks after my PC;)

picardygirl

Somerset wrote: »

I
I'm a consumer not a politician or a banker. I signed up with NRplc not GMAC. I don't have a high LTV or high multiple and didn't get an ''under priced mortgage''. I will hopefully have options when my fix ends (working on it now) but it's an uncomfortable situation to be in. And truthfully I think the powers that be are making a pigs ear out of sorting it out, and generating a lot of anxiety and hostility, which they don't seem to care a jot about.

Same for us Somerset ..... signed up with NR plc because they were offering the best deal for a "high street" lender then ..... didnt need high multiples, LTV was anything below 75% deal ..... but we are now tied in til Sept 2011 which as you say is an uncomfortable situation to be in ...... just wish we could move now without ERP but we cant !

A question for anybody that may know though, apparently i have read on here, that a NRAM customer knew before NR informed them that they were with NRAM because NRAM done a credit check on them in early december ..... so i'm assuming it shows on "our" credit files (all NRAM customer credit files) ...... would it look bad to another potential lender that NRAM appears on a credit file or would it not matter at all? Just curious thats all, we cant do anything til middle of next year !!!!

deefadog

Only lat week i did an equifax check on myself and i saw nothing on there?

picardygirl

enay73 wrote: »

well of course they can tell you, but I do believe 90% of the mortgages are in the ASSET company, so I wouldn't be surprised if you are in the same boat like anyone on here.
Also I was checking my credit file on experian and with my surprised even it was last update from NR on the 6 of Dec it appears on the name of NR Asset
so they already knew before.

This is where i read the info from .......

Only lat week i did an equifax check on myself and i saw nothing on there?

Thanks deefadog ....... when i get the chance i will do a credit search/check on us to see if we have anything on there

enay73

Picardygirl,

yes it is right since the beginning of Dec 2009 I did notice on my credit file the difference. I was surprised. That meant NR knew which one was going to NRAM.
Also I noticed that on here, almost the customers had a very good LTV so perhaps it means in some way that NRAM is not a bad bank. You know I never had any missed payment since I had the mortgage with them, I made almost good overpayments which it helps me perhaps when my deal ends to find another mortgage lenders. You never know. Almost the people wrote on here they are in the same situations. In my opinion is it NRAM try to keep us on there and hopefully moving elsewhere so they can pay out the money to the governement asap? Also it seems now they can discharge the early repayment charges. Who knows what they are in mind. If they want to pay back in some way they wouldnt increase the SVR, it would be too risky for them and they be in trouble. Of course its just my personal opinion.
Enay

dasilva_2

enay73 wrote: »

Picardygirl,

yes it is right since the beginning of Dec 2009 I did notice on my credit file the difference. I was surprised. That meant NR knew which one was going to NRAM.
Also I noticed that on here, almost the customers had a very good LTV so perhaps it means in some way that NRAM is not a bad bank. You know I never had any missed payment since I had the mortgage with them, I made almost good overpayments which it helps me perhaps when my deal ends to find another mortgage lenders. You never know. Almost the people wrote on here they are in the same situations. In my opinion is it NRAM try to keep us on there and hopefully moving elsewhere so they can pay out the money to the governement asap? Also it seems now they can discharge the early repayment charges. Who knows what they are in mind. If they want to pay back in some way they wouldnt increase the SVR, it would be too risky for them and they be in trouble. Of course its just my personal opinion.
Enay

As was previously posted I think it has at least as much to do with how NR had securitized each block of mortgages as it does to individual cases.
The reason NR got has a reasonable proportion of high LTV or high multiple income mortgages is that they actively marketed things like the 'Together' mortgage and other things similar. It does not mean that all their mortgages are risky. As someone else pointed out, we do not know the percentage of 'dodgy' NR mortgages and I suspect neither do NR. They could only know their delinquency levels.
In deciding which part of NR to bundle the mortgages with after the split it must have been a very arbitary decision if it was decided on retrospective underwriting. How many people got a letter to confirm current employment/income - none. How many had a valuer round to confirm property valuation - none. There are plenty of people in negative equity who have a clean credit record and there is no property valuation on the credit record.
As I mentioned earlier the feeling of frustration is caused by the lack of information.

picardygirl

enay73 wrote: »

Also it seems now they can discharge the early repayment charges. Enay

Only for people wishing to move house and increase there borrowing with a new lender ..... or do you know different ........??

deefadog

I'd like to know too, if i could switch now and not have any early repayment's i would go now as i want to be fix for 10 years

dasilva_2

deefadog wrote: »

I'd like to know too, if i could switch now and not have any early repayment's i would go now as i want to be fix for 10 years

I don't actually see why you should get a reduction on their early redemption charge. Presumably you have had a deal with NR and you are still in it or you are in the period when you have to be on the SVR after it. Nothing NRAM has so far done is detrimental to you, infact their current SVR is beginning to look more attractive, so on what basis would you want the redemption charge waived?
They are not saying you cannot swop out of the deal after the specified time as both parties agreed to at the beginning of the deal.