Northern Rock End of Mortgaged Deal (Merged Threads)

Teddy_KGB

I rang "N-RAM" today and got my balance, but I also asked about accessing my balance online and was told that they haven't even made a decision on if they are going to set this up! I get the feeling they're not in any rush to do anything to benefit existing customers.

semanticist

At least they've not 'wasted' lots of money on the website itself. The content is almost entirely reused from the previous site, and I can't imagine that the new styling cost more than US$50 from a theming website...

For what little it's worth, I've updated my Twitter bot (http://twitter.com/northernrocksvr) to handle the changes to the website. Still no change to the SVR.

mutron_2

I am keen to know about NRAM's ERC policy as we've just had an offer on our flat that's below what we were looking for and may hinge on us actually being able to sell as we have a secured loan that will need to be reconciled.

Will give them a buzz tomorrow and post the outcome!

mutron_2

Spoke to N-RAM earlier. There is absolutely no room for leverage on their ERC I'm afraid.

chips78

Hi i am on the SVR with NRAM and to secure my outgoings i am looking to split the secured and unsecured parts of my mortgage with NRAM so that i can qualify for 85% LTV 3yr deal with another mortgage company.

I have tried to get hold of NRAM but they never pick up can someone tell me what the interest rate will change to on the unsecured part of my mortgage i took the mortgage out 7 years ago.

MarkyMarkD

Typically 5% over SVR.

Are you sure that the other lender will accept you as a customer given that you will have a huge outstanding unsecured loan from NRAM to disclose on your application form? And is the new deal cheap enough when you take account of paying the high rate on the unsecured element with NRAM?

chips78

the unsecured element is only 5% of the total so it would still be worth doing, but your right it does scare other mortgage companies

baldbettyblue

Hi all,
I hope someone can help-

I have a Together product for £146K @ 5.9% fixed rate which ends in Feb 2011. I took a maternity payment break for 6months and I have now paid the money I owed due to this break, however I still owe £138K but I am also in negative equity as property is now worth £125K.

Is there any bank that will lend to us as my wage has increased significantly since I took out the mortgage, I have also got married and we are now a 2 income household.

Is everything just based on negative equity and not just the abilty to pay? Sorry if this is a dumb question- I just need abit ofguidance.

Thanks

MarkyMarkD

You won't get a straightforward mainstream mortgage for over 100% of the value of your property. So you would likely have to do what chips78 is proposing - split your debt between a 90-95% secured mortgage, on the new property (or same property) and an unsecured loan for the rest.

It is easier to do this if you would just be leaving the unsecured element with NR, because they can't say no! I can't tell from your figures how much you have secured and how much unsecured with NR, but if your property is worth £125k, 90% would be £112,500 which would leave £25,500 unsecured which is a very large amount and would significantly affect another lender's assessment of you as a prospective customer.

NRAM's rates are not THAT high. So I wouldn't get stressed out and worried about them, for that reason. The best thing to do is get some independent mortgage advice from an experience mortgage adviser (not another lender) who will understand all the deals available. But then come back and check here that the adviser isn't simply making matters worse for you. In particular, it's not worth doing a deal that reduces your payments slightly, for a limited period of time, if it is incurring up-front lump-sum costs (like arrangement fees, legal fees, etc.) which are being added on to your debt and making it even higher.

lucymumof1

jessypotter wrote: »

Me and my partner bought our house with Northern rock in October 2007 - just before everything happened. We are on a five year fixed deal.
Since then, our circumstances have changed - my partner works from home, and we are expecting a baby, so could really do with a larger house. My wage has doubled since we got the mortgage, so that should not be a problem - the problem is Northern rock can't lend us anymore money, yet if we move the mortgage we have to pay £4500.
I understand what other people are saying - that technically Norhern rock are not breaching a contract, because we didn't sign to say we could increase the mortgage, it was just understood as an option for the future.
However, it has left us and countles others in an awkward position. I have written a formal complaint to northern rock asking them if they could waiver the fee as a good will gesture (!) Not sure what to expect, but if you don't ask..

Jessy did you get a response? I'm in a similar situation and am drafting a letter to NRM.

Thanks