Northern Rock End of Mortgaged Deal (Merged Threads)

cathh70

I've not heard of any lately, but I'd love to know if there are. We are in a position to completely pay off our mortgage balance this month, but are subject to a £3.5k fee, which will reduce to £2.8k on 1st October. We are almost 5 years into a 10 year fix. The best thing that we can do is pay all but the last couple of hundred pounds, so that our payments are reduced to a minimum (£1 a month) and close the account off after the five years have passed.

Northern_rock_saver

This is for anyone with a Northern Rock together mortgage that has moved house and had to port their existing loan.

Back in 2005 we took out a "together" northern rock mortgage on a 125% part mortgage part loan as we had no deposit to get onto the housing market as many first time buyers also did.

I wanted to move house after the initial 3 year fixed rate ended which Northern rock eventually accepted, providing we paid the mortgage off and took the loan as a seperate debt.

In principle this was fine until the month after everything had settled and we were moved in, NR sent us a letter saying the loan interest rate had gone up from 5.8% to over 12% which put nearly £200 on top of our payments. :mad: None of this was mentoned at point of mortgage sale or when moving and was only in the "small print" of the contract once I had checked.

We have been in contact, calling and asking for 8 months to see if anything could be done about the huge increase in interest rates and were told differing things regarding dropping the interest rate, reduced payments, getting financial advice etc. (which was not the issue) They said that they could not help us unless we fell into arrears!! which was totally rediculous in my opinion.

I eventually sent NR a long letter with a full and final payment settlement offer to pay the loan in full with accompanying expenditure and income details which was finally accepted (after 2 months) and knocked over £12,000 off our existing debt This has saved us over £100,000 over a 27 year period. which the loan part would have lasted for.

We got a loan at 7.7% from Nationwide building society which not only reduced our payments but reduced the term by 20 YEARS!! :j

We will be free of this debt in 5 years time.

We are now thankfully free of Northern Rock's horrible grasp!

I would also like to add that Northern Rock have been good enough to eventually sort this out for us (after many letters and hundreds of calls), but there should be more help for people out there in the same situation that are maybe not as tenacious as me.

try asking for a solution if you are finding it difficult, rather than havng to go into a debt management program which could affect your credit rating. Make a cheeky offer for full and final payment and it might just get accepted!

dmhuk2001

Hi,

The massive increase in the interest rate is in the agreement but its hidden in the 'additional benefits' section - an odd description for it - in fact this may've invalidated the agreement if mortgage agreements were subject to the same fairness rules of other credit agreements - it seems it's legal to mug people buying houses but not most other things which are now subject to at least some protective legislation.
When I took out my mortgage I also clearly stated that I intended to move in 3 years. I was sold on the low interest rate for the debt while still maintaining a good repayment rate. What I didnt realise and wasnt explained to me by my "financial advisor" was that it places me in negative equity immeadiately so I wouldnt be able to rent out my place if I wanted to, and if I port my mortgage the loan detaches and increases to a huge amount so essentially will need to be paid off immeadiately, -so not only do you save for a deposit for your new place but also budget for paying off your debt either immeadiately or on top of whatever your new outgoings are going to be as most highstreet loans are for 7 years or less. This is perhaps okay for people who plan to stay where they are for a long period of time, but based on what my aims were it was mis-sold for this and several other reasons - if the advice was tuly independent Id have been adivsed to wait until I had a better deposit, if the agreement wasnt aimed at anything more than maximusing sales of mortgages to people who would have been better advised to do otherwise the clauses like % increases would not have been hidden away within a intentionally badly laid out agreement.

rose2011

I took out a NR Together mortgage in 2004 for £94000, purchase price was £90950. This was a repayment mortgage and unsecured loan.

In 2006 I changed my mortgage to interest only mortgage with permission To Let, somehow this meant the unsecured loan was changed to a secure loan. This was never explained to me.

Now the mortgage balance is up at £98300+ and although we can afford the payments from the rental income we know things are going VERY wrong with that balance.

Properties in the area are going for approx 75000 but struggling to sell. We have no equity and no savings.

Any suggestions for a way out of this one??

Barny1979

Have any other NR customers managed to get a large discount on their unsecured loan elements if they have settled the debt?

princess_loki

Morning all!

I am hoping that someone here will know what kind of charges NR are likely to impose if I decide to rent out my property.

I have been with NR since I bought the property 6yrs ago and am on repayment with no fixed terms. Never been late with a payment or had any problems with them.

I am now in a relationship and we have talked about renting my house out and me moving in with my partner. All in the early stages of discussion but I know that I must inform NR if I do decide to go down this route.

So... before I phone them up I was wondering if anyone else had any advice to give me?

Many thanks,
Loki

picardygirl

We have received a letter today from NRAM telling us that all their contact details have changed.

So for anyone with a NRAM mortgage new contact details are (just in case anyone didnt receive a letter) tel number: 0845 609 9610 website www.n-ram.co.uk and address is Prudhoe Building, Regent Centre, Gosforth, Newcastle upon Tyne NE3 4AW

Oh, and from now on they should be referred to a NRAM (Pronounced N-RAM) sounds like they dont want to be called Northern Rock Asset Management anymore !!!

Hopefully for us, this will be one of the last letters from NRAM as we have just received a mortgage offer from Barclays so hopefully will be saying goodbye to N-RAM in the next couple of weeks!

Paza02

Thanks for the new details, we still can't log in anywhere to see our balance and it's shame they give us a 0845 number like normal. Wonder if will can still use the old geographical numbers.

zipman23

Paza02 wrote: »

Thanks for the new details, we still can't log in anywhere to see our balance and it's shame they give us a 0845 number like normal. Wonder if will can still use the old geographical numbers.

Fair enough it was a while ago that I last rang them BUT the number I used was 0191 2857191. Hope that helps!

Paza02

The number still works but tells you to dial the other number, I was able to get my balance at the moment, not sure when northern rock will stop providing n-ram customers their balance. Apparently they are working on the website, can't see why it's taking so long, I can't be the only n-ram customer who wants to see my balance on-line.