Northern Rock End of Mortgaged Deal (Merged Threads)

edwards97

Can anyone help me with some advice?

My situation is that I am with NR asset mangement part of NR and I am on the SVR at the moment as my deal ran out. I have a bad credit rating in terms of several defaults of which I am still paying for. I really need to get on a competitive fixed rate before the rates start changing. My mortgage is about 80k and the house is worth 120k. Will i have any problems getting a mortgage with someone else? I have never missed a payment for the morgage in 9 years but my defaults against credit cards concerns me.

Renfield

I would doubt a "mainstream" lender will take you on with existing defaults.

It might be worthwhile speaking to a broker about subprime lenders to see if any can offer decent rates. Although I would be surprised if they will be as low as the SVR you are on.

jonomassey

Hi, We have now come to the end our fixed rate and are moving onto the svr. This will save us around £65 a month but we are going to keep the payments the same. The question I have is that our house is currently valued at around £90k and we owe £73k secured and £21k unsecured. We are looking to move into a brand new house next year for which we would need around a 20% deposit which would equate to £27k. Do you know if we sold our house for £90k would we need to pay both the secured and unsecured element back or could we just pay the £73k secured element and leave the unsecured as a loan? We would need to use £17k towards our deposit. I know that house prices are going up and down all the time but need an idea before we pay a fee to secure a plot. Our credit rating is very good and have never defaulted on any repayments on loans etc and in fact we have just paid off 3 existing loans early. We can also borrow up to £160k with Santander after speaking to them. Any advice would be greatly appreciated.

Teddy_KGB

Hi all! First time I've posted on this board, I hadn't really taken much interest in the whole NR and NRAM thing as I had no intention of moving house in January 2010, however now I might be looking to move in the near future but the ERC is pretty annoying as I wouldn't be looking to borrow much if any more money!

I saw some stories from the BBC and Daily Mail (Sorry can't post links but google "northern rock asset management early repayment" and you should find them).

Hopefully something might change with the press reporting on it, but it's already been a month and nothing has changed yet.....

wheatleybix

Hi
I spoke to NR today to ask for a repayment holiday to get us back on track a bit. I didnt realise that they now don't let you add it on the to the end of the mortgage and just recalculate your repayments. Anyhow we come to the end of our fixed term in January and so I asked would we get booted out of NRAM then and was told no, as long as we go on the SVR which is lower than the 5.14% we are paying. She did say if we want to move we have to pay off the secured loan part of our mortgage as well as the mortgage. The problem we have is that although I am working part time now (which I wasn't when we took the mortgage out), we were sold the mortgage on my husbands salary at something like 7x his salary ( by someone who forgot to explain lots of things to us it turns out!). Wherever I look now I cant find anyone who would lend us that amount even though we can afford to pay it and have never missed a payment in this or our previous mortgage term. Any ideas much appreciated!

dvr80

wheatleybix -
It is going to be near impossible to remortgage based on anything more than 3 or maybe if you're lucky, 4 x salary let alone 7x!
The fact you're now working part time is not going to help you as the usual procedure for lenders when using more thasn one income is to use a lower calculation - for example single income 3 x salary // joint income 2.5 x salary.
With only a part time wage, unless you're earning serious amounts, the total amount they'#d lend would probably be the same as your husbands single calculation or more likely, less.

darrengr

dvr80 wrote: »

wheatleybix -
It is going to be near impossible to remortgage based on anything more than 3 or maybe if you're lucky, 4 x salary let alone 7x!
The fact you're now working part time is not going to help you as the usual procedure for lenders when using more thasn one income is to use a lower calculation - for example single income 3 x salary // joint income 2.5 x salary.
With only a part time wage, unless you're earning serious amounts, the total amount they'#d lend would probably be the same as your husbands single calculation or more likely, less.

Another thing people need to understand now, is the fact that lenders are removing the traditional income multipliers 3, 4 or 5 times income and have moved to a more managable affordability calculator system which is based on, gross income less any current debts but the system also takes into account what it costs to run a home as well as dependents are classed as an outgoing so that would also reduce the borrowing available so as we enter a new era of lending which is more sensible.it is only right that the banks show some sort of responsiblity for their actions to try and reduce the risk of the market crash we have suffered over the past 2 years.

on the point of variable rates these are at the lenders descretion and there is NO limit on how high they can raise the rate to, so if a lenders assets were affected they will raise this figure to balance the books in their favour and the notice they need to give is very short indeed so people who are on variable rates with sufficient equity need to be very careful as not to let greed on the monthly saving blind them from what happens in the market daily as when rates do change the lenders will pull their deals before you can blink an eye.. What we have done with a large number of our clients is secure them a mortgage offer with a lender but not completed the deal to try and edge their bets that not if but when rates change they have the saftey net of having a deal already placed so as not being left out to hang.


although this does not help people on the old together NR products it is something people shouldd be seriously considering

The Mortgage Index Ltd

skinnybowler

I was looking through my Northern Rock Together Mortgage paperwork yesterday and noticed that there is a discrepancy between the Key Facts & the Mortgage Offer.
The 5-year fixed rate on my mortgage comes to an end on 31st July 2011.

The Offer states that from 1st August 2011, the interest rate will be variable, guaranteed to be less than the Standard Variable Rate. The SVR is currently 4.79%.
However, the key facts says that from 1st August 2011, the interest rate will be variable, set at a level less than the Standard Variable Rate, guaranteed to be no more that 2.39% over the BOE rate. Currently, this would be 2.89%.

I've opened a thread to get opinions on what to do here:

forums website... t=2699989

(can't post links yet)

jwil

Renfield wrote: »

Something doesn't add up.

I won't mention my employer, but I KNOW Northern Rocks mortgage policy. And know that your scenario is done all the time.

There must have been an underwriting issue which prevented it.

Had you bad credit/missed payments elsewhere?

Well they didn't do it for us. I don't know why as their mortgage advisor apparently wasn't able to give us a reason.

Our debt levels were high, but they were no different to when they gave us the agreement in principle, and in fact, some of our debts were to be paid off, which had not been the case previously.

There is no bad credit or missed payments - our debts were high, but manageable, and the mortgage payments were affordable.

In the end we got a deal with another high street lender, so we couldn't have been that bad a risk - it is a better deal, and it was really only laziness that was keeping us with NR so they did us a favour actually.

picardygirl

Just wondering if any body on here knows of any cases where NRAM have dropped their ERC charges recently, i know they were for certain cases before the 30 June 2010, but anyone know of any thing since then.