Northern Rock End of Mortgaged Deal (Merged Threads)

jjumanga

Just spoken to NRAM and they have said that currently on SVR @ 4.75% my unsecured loan is £154 pcm. If I took the secured loan away the unsecured payments would increase to 8% above SVR (still not fixed) and currently would be £307 pcm.

Its truly scandalous that even this payment wouldn't be fixed and could increase to unbelievable levels! I feel quite ashamed that I signed up for this mortgage and feel well and truly trapped.

Meeper

Whilst it may be scandalous it was certainly in the original agreement. Basically, there was potential for NR to offer an unsecured facility at significantly lower than the regular unsecured market at significantly higher values and over a longer period than would ordinarily be available to the unsecured market. Their "Together" product allowed thousands of people the opportunity to purchase their own place instead of renting and allowed unsecured borrowing WAY in excess of regular unsecured borrowing. They offered this as a package. If you want to take away some of their package now, then surely it is fair for their unsecured lending element to revert back to levels that would be expected for unsecured lending.....

jjumanga

Meeper - I understand the terms of what I signed but due to the inability of some to pay for the lending the Together product gave them people and families like mine which has never missed 1 payment face an uncertain future because not only do we have no mortgage option since the Together product has been withdrawn but even if we do the one thing we can to avoid potential bankruptcy which is sell our property and live with an unsecured loan we are told that this loan will revert to "levels that would be expected for unsecured lending" which is also untrue as when you take out an unsecured loan your payments are usually fixed for the term of the loan thus knowing what you will eventually pay back.

They have removed some of the package as they cannot offer any rates for the so called Together product anymore. If they have moved the goalposts we should be able to act accordingly which due to the above we clearly cannot!

It's the lack of any other option that is the worrying aspect.

spidermev

To be honest jjumanga I disagree. They have not removed any of the package as there was never a promise as to what you could remortgage to. They have upheld their part of the deal by lending you more than your property was worth and not changing the rate until the date that you agreed with them. It's not their fault that you may struggle to pay in the future. Unfortunately that's part of the gamble of buying a house. You should always consider "what if" when you are working out affordability. Experts recommend than you use an interest rate of 12% "just in case".

jjumanga

It's just disappointing that previously I had 2 options - Fix rate or go on SVR and now I only have 1 option and can, therefore, in theory be forced out of my home should we go back to an 80's 12-15% interest rates.

Meeper

If the economy allows interest rates to go back to 12-15% interest rates, about 75% of all homeowners will be forced out of their homes, so I wouldn't fret about that type of silliness.

dannyhoy

im with norther rock at the moment on base rate not on a fixed rate really worried what going to happen now, dont mean to butt in but my problem is below

re mortgage whilst on DMP




Hi all new poster any help would be appreciated

ok lets start i am on a DMP at present we are paying out mortgage with northern rock all fine we are not on a fixed rate so currently paying base rate 0.5.

i am very concious of the rate rise and i am considering a few options 1. remortgage but i have been told only certain brokers offer them for DMP customers and it usually involves a deposit (which we havent really got) and quite a high rate.

2. selling the house and renting a new property worries with that one are im confident to sell and get enought to pay the house off but we also have a loan secured for around 15k this would be a push to clear aswell. the loan is with first plus (we are currently pushing for a mis sale of the ppi)

there are lots of things to consider inclusing sales costs and soliciters fees to selling aswell.

has anyone been in this situation? can anyone offer advice any help would be really appreciated.

cheers

Meeper

Meep!

Doubt your mortgage is at 0.5%, you might want to check that. Their Standard Variable Rate is currently 4.79%.

The advice is difficult for your situation. Are you able to overpay your mortgage at all to reduce the balance?

Otherwise, selling might be your preferred option and just make the best of it as you can.

dannyhoy

sorry that was a mis type yes i just dont want the payment jumpin up massivley on a higher percentage. with a secured loan is it true it needs to be settled with the house sale? you can carry on paying it seperate?

Meeper

In the VAST majority of cases it would need to be repaid with the sale of the property. In some RARE cases the secured loan lender may allow it to be unsecured but that would depend entirely on the lender.