Northern Rock End of Mortgaged Deal (Merged Threads)

Mary_Hartnell

You cannot sell it without your lenders approval. It looks like you need to find at least 10,000 to make up the costs of sale and pay off the mortgage.

Selidie

Hi,

I am currently with NR on their standard variable rate, had to go onto this at the end of my fixed terms. This was because, when I took out the mortgage I also took out an unsecured loan to pay off some other bits. After a bit of time the unsecured loan was taken up in the mortgage due to the increase in house prices at the time, so that left me with just the mortgage.

However, with the drop in house prices, at the end of my fixed terms (a little over a year ago) I was forced to stay with NR as I only had about 2% collateral in the house and nobody else would take me on, the payment increase at the time wasn't too substantial luckily enough. I have given it some time and mortgage deals appear to be improving again (albeit slowly) but would definately like to try and get away from NR onto another fixed term deal (I prefer this so I know exactly what is coming out of the account each month). With the potential interest rate increases on the horizon, staying with NR could be painful financially.

The other thorn in my side is my poor credit rating, I have just made the final payment (this month) on a 5 year debt management contract, which has been far from painless, I even had a CCJ issued against me due to the debt management company failing to honour payment deals they arranged!

So, with all that in mind, does anyone have any advice on lenders to try? I have already downloaded the Morgage .PDFs from here and will be having a read through but I am also interested in community opinions.

Thanks in advance for any help.

microkid

has anybody successfully reclaimed their NR early redemption fees from Asset management when remortgaging with a new lender because NRAM wont provide further borrowing? I need to increase my mortgage by 20K NRAM wont do this and want to charge me £7K to get out....

_Andy_

Selidie wrote: »

Hi,

I am currently with NR on their standard variable rate, had to go onto this at the end of my fixed terms. This was because, when I took out the mortgage I also took out an unsecured loan to pay off some other bits. After a bit of time the unsecured loan was taken up in the mortgage due to the increase in house prices at the time, so that left me with just the mortgage.

However, with the drop in house prices, at the end of my fixed terms (a little over a year ago) I was forced to stay with NR as I only had about 2% collateral in the house and nobody else would take me on, the payment increase at the time wasn't too substantial luckily enough. I have given it some time and mortgage deals appear to be improving again (albeit slowly) but would definately like to try and get away from NR onto another fixed term deal (I prefer this so I know exactly what is coming out of the account each month). With the potential interest rate increases on the horizon, staying with NR could be painful financially.

The other thorn in my side is my poor credit rating, I have just made the final payment (this month) on a 5 year debt management contract, which has been far from painless, I even had a CCJ issued against me due to the debt management company failing to honour payment deals they arranged!

So, with all that in mind, does anyone have any advice on lenders to try? I have already downloaded the Morgage .PDFs from here and will be having a read through but I am also interested in community opinions.

Thanks in advance for any help.

Adverse credit and minimal equity in your home will mean no options with other lenders.

papermoney

gowfer wrote: »

Im looking for any advice and help if possible. In July 2007 bought my house for 86000 on a 100% mortgage with NR. My current balance with buy out clause is around 90000. House now only valued at around 81000. Im looking for options on what i can do as it looks like i may lose my job within the next year. Now my partner and I are managing to make the payments just now but are possibly looking to get a council house to make things a lot more affordable just now as we have just had a baby.
Is my easiest option to try and sell the house myself and offer to pay the difference to NR or is there anything else other than repossession. I dont want the house anymore as it has just been bad luck as everything has went wrong wince i moved into it.

Can anyone give me any advice on what i should do?

I had exactly the same thing, bought in July 2007, was in neg eq etc. In the end I sold the propert for 15k less than I bought it for and then had all their charges on top as I took a 5 year fixed deal out.
I had to get them to agree for me to sell the house and then they turned the rest into a loan on their variable rate and im paying the shortfall over the next 4 years until its paid off.

semanticist

microkid wrote: »

has anybody successfully reclaimed their NR early redemption fees from Asset management when remortgaging with a new lender because NRAM wont provide further borrowing? I need to increase my mortgage by 20K NRAM wont do this and want to charge me £7K to get out....

Not sure why you'd have any grounds to reclaim fees - you want to borrow more so you need to break the contract, and that triggers the fees. NR/NRAM were never obliged to let you borrow more from them.

If you believe the fees aren't legal, you'd need to speak to a solicitor, look at a court action, etc. This isn't like bank overdraft fees, which could be reclaimed because they were a 'punishment' beyond the bank's direct costs. This is a clause in your contract to which is meant to compensate NR/NRAM for loss of interest income if you terminate the contract before the agreed date.

microkid

semanticist wrote: »

Not sure why you'd have any grounds to reclaim fees - you want to borrow more so you need to break the contract, and that triggers the fees. NR/NRAM were never obliged to let you borrow more from them.

If you believe the fees aren't legal, you'd need to speak to a solicitor, look at a court action, etc. This isn't like bank overdraft fees, which could be reclaimed because they were a 'punishment' beyond the bank's direct costs. This is a clause in your contract to which is meant to compensate NR/NRAM for loss of interest income if you terminate the contract before the agreed date.

Because NRAM wrote to their customers earlier this year explaining they would not be willing to increase the size of customers mortgages, and that basically if that is what we wanted to move elsewhere. If that was the case then we could apply to NRAM for a refund of any Early Redemption Fees.

It's basically there way of getting rid of helping customers leave and reduce their risk.

Which Is why I was asking - i don't mind staying but if I could move now then I would but I don't want to pay £7000 in fees and then not have it refunded. NRAM say they have never heard of a refund not being accepted but have stopped short of putting anything more definite in writing!

themusicliveson

Hi
I have a NR mortgage and currently unemployed.
From September 1st 2010 it will be a variable rate 4.79 saving us 60 pounds a month.
I need serious help but dont understand Mortgages. I am currently unemployed and my wife is working but min wage. We get a bit of help with our mortgage which goes straight to NR and we try pay the rest.
Our old rate was something like 5.85 so we were paying over 600pounds a month.
In 5 years only paid a tiny amount off.
I have looked into remortgage but it says we must have paid a certain percentage of the property.
If anyone knows of any good deals in my family situation I would really appreciate it.
The mortgage was for 107200 and outstanding is 105000.
Please if anyone has any recomendations we would be so grateful undersanding things.
Thanks
Jay

MarkyMarkD

Hi Jay

I'm sorry, but nobody else is going to lend you money on this sort of basis whilst you are unemployed.

You are going to be stuck with NR and it's lucky that your rate is going down, not up.

But the SMI rate (the amount paid by DWP) is reducing to about 3.7% in October so you will have around 1% of your balance as a shortfall each month - so that's about £90 a month, even if you changed the mortgage to interest only (which I'd suggest you do, or you are going to continue struggling).

mutron_2

microkid wrote: »

Because NRAM wrote to their customers earlier this year explaining they would not be willing to increase the size of customers mortgages, and that basically if that is what we wanted to move elsewhere. If that was the case then we could apply to NRAM for a refund of any Early Redemption Fees.

It's basically there way of getting rid of helping customers leave and reduce their risk.

Which Is why I was asking - i don't mind staying but if I could move now then I would but I don't want to pay £7000 in fees and then not have it refunded. NRAM say they have never heard of a refund not being accepted but have stopped short of putting anything more definite in writing!

I would also like to know this as my wife and I are in a similiar position. A few months ago we were advised by the Glasgow branch that it was possible to receive a full refund of fees if you could prove you were borrowing a larger mortgage from another lender.

There's a story in the news section about it:

http://www.moneysavingexpert.com/news/mortgages/2010/01/norther-rock-and-bb-slash-mortgage-switching-costs-by-thousands

What I would like to know is if this deal is still available. My understanding is that the fees would have to be paid initially but would be refunded once the new lending was verified.

I will give them a call tomorrow and report back.