Northern Rock End of Mortgaged Deal (Merged Threads)

goaten2000

darthpaul wrote: »

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?

No, IIRC 90% of NR mortgages moves over to NRAM (the "worst" of all mortgages they had) with the "good" debt / savings staying with them.

you must still be with Northern Rock

bushpiglet27

I'm new to the forum so I apologise in advance if this has been asked before (I've had a quick look and couldn't see it). We currently have a 95% mortgage and a £20,000 loan (unsecured) with Northern Rock (now changed to NRAM due to the high mortgage value). Our mortgage term runs out next October.

The loan runs alongside the mortgage so it will run for a ridiculous amount of time. My question is, is it possible to move our mortgage elsewhere but leave the loan with NRAM or would we have to keep them both together? The reason I ask is because we took the mortgage out on interest only basis (the loan's on a repayment basis but it's not really budging at the moment because it's over such a long period). We want to move to a different mortgage and change to a repayment mortgage - we took this mortgage out at the peak of the market and our interest rate is 7.29%. Obviously nobody will touch us with the full amount but (although it'll be difficult) we've been advised we may be able to find a 95% mortgage).

We did ask NRAM about changing to a repayment mortgage with them but they've told us that we're "not eligible" for their SVR so it'd increase our monthly payments by £165.

I've just found out about the waiver on the ERC so I thought this could be an option for us. Thanks, Lou

goaten2000

bushpiglet27 wrote: »

I'm new to the forum so I apologise in advance if this has been asked before (I've had a quick look and couldn't see it). We currently have a 95% mortgage and a £20,000 loan (unsecured) with Northern Rock (now changed to NRAM due to the high mortgage value). Our mortgage term runs out next October.

The loan runs alongside the mortgage so it will run for a ridiculous amount of time. My question is, is it possible to move our mortgage elsewhere but leave the loan with NRAM or would we have to keep them both together? The reason I ask is because we took the mortgage out on interest only basis (the loan's on a repayment basis but it's not really budging at the moment because it's over such a long period). We want to move to a different mortgage and change to a repayment mortgage - we took this mortgage out at the peak of the market and our interest rate is 7.29%. Obviously nobody will touch us with the full amount but (although it'll be difficult) we've been advised we may be able to find a 95% mortgage).

We did ask NRAM about changing to a repayment mortgage with them but they've told us that we're "not eligible" for their SVR so it'd increase our monthly payments by £165.

I've just found out about the waiver on the ERC so I thought this could be an option for us. Thanks, Lou

Hi

you can move your mortgage and leave the loan with NRAM however your interest rate will increase on the loan (I believe by 5% bot not 100% sure)

I'm also looking at my options to remortgage as my fixed rate finished in Jan and my LTV with the loan is 95%, and without the loan is 85%.

You're best bet would be to either look at the original paperwork or contact them and ask the question..

bzzzzzt

I am going to get a new variable mortgage with First Direct as it works out cheaper than my NRAM mortgage variable rate (which started in 2005). However, I'm not sure whether I should ask for another 25 year term or stick to my original schedule and get a 20 year term from First Direct so that I finish paying on the date I originally planned. I need my repayment to be lower now, so the lower rate I'd get with a 25 year term would be very handy at the moment.

wskdf

Talk to your OH about why he doesn't want to be on the deeds/mortgage

rmcewan

Please help!!

My Northern rock mortgage is up in July and i'm not sure the equity in the house is not enough for a deposit to switch- I believe it will work out to about 5%. I'm worried that NRAm/Northern Rock will pass on the interest rate increases that are likely to occur so am worried that i'll end up in a financial mess that i cannot afford. I appreciate that there are many threads along this theam but cannot find any that answer my particular problem- can anyone help? Also, has anyone had success in unsecuring the loan portion of the together mortgage?

niccatw

There are some mortgages out there that might be suitable for you, though you'll probably have to pay a hefty charge for them.

And NRAM will separate the unsecured loan from the mortgage (at least, my terms and conditions state they will) but the interest rate will go up on the unsecured loan.

Best bet is to call them and get them to work out the costs for the various different options available and then you can decide what's best for you.

I've been on the SVR for a good 18 months now, which is cheaper than my fixed rate was. I kept my payments the same as they had always been and asked them to pay the overpayment to the unsecured loan only and have been doing that ever since (though it took a few persistent phone calls and letters to set up initially). I don't know if that might be a suitable option for you until you can move elsewhere?

MarkyMarkD

As the rate on the secured and unsecured portions is the same, I can't understand why you were so insistent about the overpayments being allocated to the unsecured portion, niccatw.

In fact, given that you could eventually remortgage the secured part whilst leaving the unsecured part with NRAM, wouldn't it make more sense for the unsecured part to be as large as possible in case you don't have enough equity to clear the secured part? If you do have surplus equity, you would be able to overpay the unsecured part at the point of remortgaging in any case.

goaten2000

MarkyMarkD wrote: »

As the rate on the secured and unsecured portions is the same, I can't understand why you were so insistent about the overpayments being allocated to the unsecured portion, niccatw.

In fact, given that you could eventually remortgage the secured part whilst leaving the unsecured part with NRAM, wouldn't it make more sense for the unsecured part to be as large as possible in case you don't have enough equity to clear the secured part? If you do have surplus equity, you would be able to overpay the unsecured part at the point of remortgaging in any case.

It depends on what way you look at it, but it's worth bearing in mind that should you move just the secured part, the interest rate on the unsecured part goes up by 5% so the smaller it is the better.

On ther other hand, if at some point your in a position to be able to merge the 2 into a new mortgage, then as you say it doesn't matter.

skinnybowler

I think it only makes sense to allocate all of the payments to the secured part only. The secured part is fully flexible, to the extent that if for any reason you need to, you can withdraw any overpayments.

To withdraw any overpayments to the unsecured loan, a new credit agreement is required, preumably requiring new credit checks, etc. and in the current climate, if you do not have significant equity, likely to be refused.

Therefore, when my fixed term comes to an end in 3 months time, I will be asking for any overpayments to be made to the secured loan. Once those repayments are sufficient to cover the entire unsecured loan balance, then I will pay that off.

IMHO, it is always better to keep as much debt unsecured as possible. If the worst was to happen and redundancy and unemployment occured, I would be in a much stronger financial position if I had made all of the overpayments to the mortgage and not to the unsecured loan.