Northern Rock End of Mortgaged Deal (Merged Threads)

Alisonb1975

deefadog

I am in a silimar situation. My fixed rate finishes 30.04. I received a letter last week saying that we will be moved to the SVR of 4.77 (I guess they will also write to you nearer the time). They also said that it is cheaper than my current rate and told me what my reduced payments would be. I already have another mortgage agreed to swap straight over.

quilter031

We have a northern rock fixed rate mortgage which is supposed to be portable, but now that northern rock has been split it has been placed with northern rock asset management, who do not give out new funds.

I am told on the phone they are still fulfilling our agreement as the mortgage can still be moved, if we need more funds we have to go to another company and will have to pay a buy out fee. Since they are saying we cannot ask for more funds is there anything we can do?

picardygirl

quilter031 wrote: »

We have a northern rock fixed rate mortgage which is supposed to be portable, but now that northern rock has been split it has been placed with northern rock asset management, who do not give out new funds.

I am told on the phone they are still fulfilling our agreement as the mortgage can still be moved, if we need more funds we have to go to another company and will have to pay a buy out fee. Since they are saying we cannot ask for more funds is there anything we can do?

Hi quilter031 and welcome ..... from what i understood, whether this has now changed i dont know, but customers with NRAM who wished to port their mortgage for a new house purchase as long as you required additional funds (and not down sizing your mortgage) from your new lender NRAM are prepared to pay Early Repayment Charges (is that what you mean by a buy out fee). I do not know how it would work and if it is possible I would want written confirmation from NRAM before i committed to a new lender/purchase etc. I would ring them back and ask if this is still the case. Good luck

VIGILANT22

Mary_Hartnell wrote: »

Surely it is a requirement of a bank selling investments and mortgages to demonstrate due diligence to the regulator. under the "Know thy customer" regulations (especially when that bank is government owned). So no wonder they are doing credit checks?

KYC Knowing Your Customer does not involve random credit checks without client's approval....KYC is at point of sale.........

Mary_Hartnell

Surely this horrible banking mess was caused by renting too much money on the never never to people who could not afford to buy it?

I remember being sent things that looked like cheques and all you had to do was fill in the amount you wanted to borrow; on what was a loan agreement.

Not much point in offering loans to people who cannot afford them?

deefadog

Ever since this recession, i get "Pre Approved" loans through the post everyday more or less, so the companies are still at it, even at an accelerated rate - Black horse the main culprit!

quilter031

picardygirl wrote: »

Hi quilter031 and welcome ..... from what i understood, whether this has now changed i dont know, but customers with NRAM who wished to port their mortgage for a new house purchase as long as you required additional funds (and not down sizing your mortgage) from your new lender NRAM are prepared to pay Early Repayment Charges (is that what you mean by a buy out fee). I do not know how it would work and if it is possible I would want written confirmation from NRAM before i committed to a new lender/purchase etc. I would ring them back and ask if this is still the case. Good luck

thanks very much picardygirl i will give it a shot !!!

quilter031

confusedroast

Hi All

I need your advice.....here is my information...

I have recently been made redundant (boo hiss) but also just had a baby (yay) so all is good.

I own a property in london and have a mortgage of £150,000 and a personal loan of £9,000 - both with Northern Rock.

I am now adding my husband to the mortgage as he will be the only one paying it as I currently have no plans to go back to work, this is costing us £250 for solicitor fees and £250 for NR fees.

I didnt think that they would put my husband on the mortgage as he has a REALLY bad credit score but after going over everything over the last few months we have managed to clear a lot of it and NR have agreed he can go on it - we are doing it as tennants in common with a split in my favour of 70/30 in case we break up as I have invested over £40K in the property

We are about to undertake a loft conversion costing £25K but will add around £45k to the property - I have been advised I could sell for around £260K but we will put it on just under stamp duty for £249995

Here is the big question, the deal we have comes to an end next March - £150K on 4.5% and unsecured loan on 5%

We want to buy a house in the country so as soon as we complete the loft the property will go on the market, we are looking at houses around £180K
My husband is on £25K basic and gets commission but it isnt guaranteed, if we dont sell before the end of the mortgage deal then we may be in trouble as the loan can increase to 12%!
Does anyone know what we can do? If we sell then we are quids in but how what can we afford to buy? If we re mortgage with anyone what about the loan??!!

Signed CONFUSED!!

zipman23

confusedroast wrote: »

If we re mortgage with anyone what about the loan??!!

From what I've read on here, if you remortgage away from Northern Rock but keep the loan with them the APR would increase to somewhere between 10-15%. The best thing to do would be to give them a call on 0191 2857191

tony863

Hi,

I need to ask a quick question. I was one of the many unfortunate people that took a together mortgage with NR in June 2007. Since then, I'm not sure if my mortgage is in neg equity, but it probably is (just).

Anyway, the loan part of the mortgage was £30,000 and we used £22,500 to consolidate and pay the other stuff. They told us that we could access the other £7,500 whenever we wanted.

I rang them today to take a payment holiday for one month so that we could use the mortgage payment to pay for a family holiday. At the same time, I thought I'd check about the other £7,500 should we need it. I was told that we were no longer allowed to apply for it as they had withdrawn this part of our deal!! I told them that I was surprised because I thought that once a contract had been signed, that they would surely breach it if they changed the conditions.

Well, apparently not. They told me that they could change the terms and conditions of the agreement at any time they wanted to and had done just that. I just wondered if anyone else had experienced this with NR and whether anyone knows if they are allowed to do this.

Cheers