Northern Rock End of Mortgaged Deal (Merged Threads)

moneyshy

Hi, we are in the same position (I think what a lot of people don't realise is the 'Northern Rock' you are with is now a finance admin company and not the Northern Rock trading and offering mortgages business as usual) as yourself. We rang and spoke to Northern Rock (admin) and whilst they are not keen to keep customers they wouldn't ditch you. You would move onto their variable rate, which I don't believe would require you to reapply hence your circumstance change would not matter, except your payments will go up as their rate is not competitive.

Long term you really need to sort this out with hubbie. The choice is pay more than you need to or remortgage. If he can afford to pay the extra then all is fine, if not worse case scenario you all lose your home. Why not put his name on the deeds, and then arrange a joint mortgage?

Hope this is of some help.

stevo76

Hi, i have a mortgage with northern rock, due to losing my job some time ago i missed some payments. my motgage has a fifteen year fixed rate @4.75% and the payments were £424 pm...since then the charges have rocketed and i'm now paying £591 pm. i cannot afford this payment every month and they are now taking me to court for repossetion as i was late on the last payment...can i get out of this mortgage even though i am in arrears, my credit rating is'nt squeaky clean either.:o

semanticist

stevo76 wrote: »

Hi, i have a mortgage with northern rock, due to losing my job some time ago i missed some payments. my motgage has a fifteen year fixed rate @4.75% and the payments were £424 pm...since then the charges have rocketed and i'm now paying £591 pm. i cannot afford this payment every month and they are now taking me to court for repossetion as i was late on the last payment...can i get out of this mortgage even though i am in arrears, my credit rating is'nt squeaky clean either.:o

You can't 'get out' of a mortgage without losing your house. If you're facing eviction you really need to get help quickly. I recommend contacting Shelter. They have information here that might help: http://england.shelter.org.uk/get_advice/repossession

dmhuk2001

You may also find a legal aid solicitor can help you defend possession proceedings depending on your current income. Contact the community legal advice service on 0845 345 4 345 to get a list of legal aid solicitors in your area.
(Although if you are successful you may have to pay back some of your costs at some point so ask about this when you speak to the solicitor, but if you keep your house then all for the better).

Also check you house contents insurance. Often there is "General Legal Costs" cover where you can get legal advice for free through the insurance policy on anything at all and it often wont affect your no claims bonus. Some other insurance policies and bank accounts have this as well, as does membership services of some unions.

Failing that some courts have Housing Duty solicitors which you can speak to on the day of your hearing if you are without representation, but check with the court in advance if this is available.

The main thing is to have a plan to reduce the arrears to present, whether this is selling the property (although you may have to 'price to sell' quickly it in the current market), or making your mortgage payments with something towards the arrears over a set period. This forms an important part of any 'defence' to a possession action.

Shelter can help as per the previous message said. Also the Consumer Credit Counselling Service 0800 138 1111 provide completely free advice on all debt related matters and are very good to speak to on how to create and present budget and repayment plans to creditors.

Obviously there is also payment protection insurance if you have it but I assume you would have used that if you had it, but you'd be amazed at how many people forget about it.

Northernspirit

Hi everybody, this is my first post so please be gentle.

My wife and I bought our first home (an apartment) off plan in September 2006 for 132000. A year later the home was valued at £137000. Our mortgage is currently fixed rate with N-RAM at 5.99% and runs out on the 1st June.
My wife and I are expecting our first baby and dont believe the apartment is big enough to bring up a child in really so we had the property valued last week. It was valued at £115.000-£110.000

We are devastated and we really dont know what to do. We currently have a secured loan of £113000 and an unsecured loan of 15000.

With our fixed rate coming to an end in June we are also facing the possibility of interest rates rising in the meantime so potentially we could be no better off than we are now.

Can anybody offer any suggestions as to what our options are with regards to moving or remortgaging.

Would any bank come near us since we are in so much negative equity?

Is there any possibility that the value of my property might rise in the next few years?

Help

Mary_Hartnell

Which town do you live in?

semanticist

Northernspirit wrote: »

With our fixed rate coming to an end in June we are also facing the possibility of interest rates rising in the meantime so potentially we could be no better off than we are now.

The SVR is currently 4.7%, and hasn't changed since I set up NorthernRockSVR on Twitter to track it. Even if the base rate goes up, it's not likely to be by as much as a whole point in one go. Basically, the odds are good that come June your payments will go down, at least a little.

You will not get a mortgage for more than the value of your house - no one's going to do it. From what I've read, it's extremely difficult to get even 90% mortgages - if you want to move, you're going to need a substantial deposit, plus the ability to pay off the negative equity.

You can split the unsecured loan off and treat it as an unrelated debt - but then the interest rate goes up substantially - you'd need to check with NRAM, but expect it to go up to an additional 10%. That would leave you needing just a few thousand, plus a deposit for your new house.

If you're posting on here, I'm going to assume that getting a 20+% deposit isn't going to be possible. In that case, your best bet is probably to split off the loan, pay down the difference on the mortgage, sell the flat and rent a house - but it really depends on your individual circumstances (household income, job stability, where you live, etc, etc) and you should probably go and speak to an IFA.

Good luck! I'm in a similar position (only without children, with a higher fixed rate, and not expiring until next year), and splitting the loan, selling our house, and renting a place is our current plan.

Northernspirit

semanticist wrote: »

Good luck! I'm in a similar position (only without children, with a higher fixed rate, and not expiring until next year), and splitting the loan, selling our house, and renting a place is our current plan.

That would be my plan, however my wife doesn't want to as she doesnt want the burden of a 15k loan hanging over us. Who can blame her.

Im from Huddersfield by the way to the person that asked.

Im going to ask for consent to let from N-Ram and rent it out. With a rental value of £595, if I put my property on an interest only and then rented a house of my own for £550 im actually saving money.

Ive just heard its not that easy to get consent to let

darthpaul

Are all Northern Rock mortgages that were existing when it went pop now on NRAM? My statement still comes with Northern Rock PLC paper etc and dont remember being told its now on NRAM? or did I miss the letter?

Thrugelmir

darthpaul wrote: »

Are all Northern Rock mortgages that were existing when it went pop now on NRAM?

No, the deciding factor is to whether your mortgage is with NRAM or the new Northern Rock is was it securitised.

NRAM needs to liquidate the mortgage book to repay the bond holders. While the new NR operates in a normal fashion.