Northern Rock End of Mortgaged Deal (Merged Threads)

MarkyMarkD

As has already been posted, they are not going to let you leave. Why would you want to anyway - the rate you are paying isn't going to get worse because of NR's current situation.

Stick to your original plan and then see what's happening in 4 years' time.

iwassomeoneelse

Hobao wrote: »

However... With the current climate and NR what is the likley hood of NR allowing customers such as me move to an alternitive lender or upgrade to repayment with them with out paying massive exit fees?

In short what are my options? Or am I better staying put and sticking to my original plan?

You should be able to change to a repayment mortgage, though they may charge you. That charge might be high enough for you to be better off with your ISAs, it would depend... you can always ask how much it'd be.

Dorothy_Lamour

A related enquiry:
Martin has advised getting away from NR 3 months b4 the end of fixed rate. How can we do that without incurring the dreaded fees?:rolleyes:

MarkyMarkD

Hi Dorothy and welcome.

What he actually said was to start the process of finding a new mortgage 3 months before the end of your existing product, to allow for the time it gets to sort things out.

When doing this, you should tell your solicitor/conveyancer that you want the remortgage effective date to be the first day after your NR penalties expire.

Mortgage offers are often valid for 6 months and almost always valid for 3 months, so Martin's suggested timescale isn't too early.

I would urge a little caution if opting for another fixed rate, though, as these products normally run to a specified end date rather than being a strict 2 years or 5 years. If you apply for one of these too soon, you may lose a few months off the fixed rate. It's worth noting that if you remortgage to Nationwide, this problem doesn't apply as their fixed rate products don't have specified end dates - you get the quoted term.

poppy10_2

Dorothy_Lamour wrote: »

A related enquiry:
Martin has advised getting away from NR 3 months b4 the end of fixed rate. How can we do that without incurring the dreaded fees?:rolleyes:

You arrange the mortgage in advance, 3 months before your fixed rate ends, but it doesn't actually come into effect until your current fixed period ends.

Hobao wrote: »

a house I paid 172k for 10 months ago (approx value now 185k).

£13,000 appreciation in the last ten months? Sounds very unlikely to me, unless you have made some serious improvements to the house.

tim158

Hi all,

Just been reading through the thread and wondering if you could clarify a couple of things, I took out a fixed mortgage for 7 years in sept 2006 with an unsecured loan hopefully explained below:

Mortgage = 107500.00
unsecured = 17500.00
interests 6.22
7 year fixed
30year term

---

mortgage now = 96000.00
unsecured loan= 0.00 paid of

still on same term overpaying 350.00 a month (900.00 pm total)

---

Will NRK change my contract or interests rate???

Many thanks for you time

Tim

kingkano

They can't change the interest rate during your fixed period as I understand it (it's a legally binding contract). But I was told the flexibility could possibly be changed. I personally believe that as everything is written in the contract, with my signature at the END, all terms would be honoured until the end of my mortgage (or atleast the end of the fixed period).

MarkyMarkD

They can't do anything with contractual flexibility. If your contract says you can overpay/underpay/take payment holidays, then you can. But if the contract says you can ask them to do those things, and that they may permit it, then they can obviously change their policy if they want to.

I don't actually see why they would want to amend the flexibility terms of products.

kingkano

MarkyMarkD wrote: »

They can't do anything with contractual flexibility. If your contract says you can overpay/underpay/take payment holidays, then you can. But if the contract says you can ask them to do those things, and that they may permit it, then they can obviously change their policy if they want to.

I don't actually see why they would want to amend the flexibility terms of products.

The only thing I thought was if they really are struggling for cash, they might not agree to any underpay/borrow back facilities? At the same time though, if you take the money back they earn more interest so in that sense your right.

Cheers for the tip on wording. I must re-read that bit :rolleyes: see exactly what the wording is.

MarkyMarkD

They aren't honestly struggling for cash, as you put it, on a day-to-day basis. They have access to as much cash as they need, from the government!

So doing things which lose their shareholder - the government - money, like waiving redemption penalties or refusing to let people borrow back money they've overpaid, really doesn't make any sense.

Letting people leave when their deals expire is slightly different IMHO.