Northern Rock End of Mortgaged Deal (Merged Threads)

ninanurse

picardygirl wrote: »

If your mortgage is with Northern Rock plc then you would have to pay ERC, but if it is with Northern Rock Asset Management (NRAM) you do not have to pay Early Repayment Charge, they stopped charging the fee as of 7 March 2011.

I can't believe it they have just tld me I have no reypayment charge but on my statemets which I only recieved yesterday it still states there is one!! Thank god they only stopped it in march and I rang to ask about something else and they told me, otherwise I would have been paying a 6% mortgage for another year without knowing!

ninanurse

So if there is not repayment charge am i best to move to the SVR? As our rate is 6.39% for both my secured and unsecured loan and we were fixed till May 2012. So if we moved would we pay less?

EssexHebridean

The discussion here about unsecured portions attached the NR mortgages is interesting. We took out a Together mortgage in 2003 on a 3 year fix, fixed again on a 5 year deal in 2006. At the time of buying we had effectively a 110% mortgage with about a 90%/20% split across the Secure/unsecured. It was only when going through paperwork last night that I remembered that, when we went onto our new deal in 2006, one of the terms of this was that the Unsecured loan was to all intents and purposed "lumped in" with the secured - meaning we now effectively have a "two part" mortgage with both parts being secured. Makes no odds to us but may well affect the way others are thinking if their situation is the same.

We're now in a position of needing to do the maths in connection with which of the new deals they are offering us we will take - all good fun! One thing which has jumped out is that the "new" mortgage deal will only allow 10% of the outstanding balances in OP's each calendar year - can anyone confirm whether this is based on the figure outstanding at the beginning of the calendar year, or some other point which is unspecified? Any input on this would be helpful - it won't affect us yet, but if we keep up our current levels of overpayment it will do by the time a new 5 year fixed period is about 4 years in!

picardygirl

ninanurse wrote: »

So if there is not repayment charge am i best to move to the SVR? As our rate is 6.39% for both my secured and unsecured loan and we were fixed till May 2012. So if we moved would we pay less?

I cant see NRAM allowing you to change to the SVR, I assume they are only waivering the ERCs for customers that take their business elsewhere....... why on earth would NRAM allow current customers on fixed rates of say 6% to move to SVR ?? Everyone would be doing it if that was the case !

goaten2000

picardygirl wrote: »

I cant see NRAM allowing you to change to the SVR, I assume they are only waivering the ERCs for customers that take their business elsewhere....... why on earth would NRAM allow current customers on fixed rates of say 6% to move to SVR ?? Everyone would be doing it if that was the case !

There is that, but there is also the fact that it is an "early repayment charge" which is only waivered when you pay the mortgage off in full. To do this, you would need to take a new mortgage out and NRAM are not taking new mortgages so I don't think this can be done at all.

picardygirl

goaten2000 wrote: »

There is that, but there is also the fact that it is an "early repayment charge" which is only waivered when you pay the mortgage off in full. To do this, you would need to take a new mortgage out and NRAM are not taking new mortgages so I don't think this can be done at all.

So your saying the same as me, ninanurse would not be able to move to SVR and avoid paying ERCs.

goaten2000

picardygirl wrote: »

So your saying the same as me, ninanurse would not be able to move to SVR and avoid paying ERCs.

yes

The only way to know for sure is for ninanurse to phone them up and ask them of course

crystalsinger

I received a letter from NRAM this weekend offering to waive my early redemption (£4600) if I would like to go elsewhere for a mortgage. It was on a £140,000 mainly interest only fixed rate 7yr mortgage due to end next November. Problem is I am part time now and using the calculator on here, would only get a 90,000 mortgage. Now does this mean I am stuck, or does the fact that I can show I have paid £700 a month for the last 9 years count for nothing in this new limited mortgage market?

kingstreet

crystalsinger wrote: »

I received a letter from NRAM this weekend offering to waive my early redemption (£4600) if I would like to go elsewhere for a mortgage. It was on a £140,000 mainly interest only fixed rate 7yr mortgage due to end next November. Problem is I am part time now and using the calculator on here, would only get a 90,000 mortgage. Now does this mean I am stuck, or does the fact that I can show I have paid £700 a month for the last 9 years count for nothing in this new limited mortgage market?

What you've paid previously isn't a material fact as the lender is underwriting for your future payments.

I'd talk to an independent/whole of market broker to see what your options might be.

crystalsinger

kingstreet wrote: »

What you've paid previously isn't a material fact as the lender is underwriting for your future payments.

I'd talk to an independent/whole of market broker to see what your options might be.

I have been paying the mortgage payments on a hugely reduced income for most of those 9 years. I mentioned it because I wondered if showing your ability to pay counted for anything?