Northern Rock End of Mortgaged Deal (Merged Threads)

kingkano

Good points.

lemonade_lifestyle

Ok got to jump on NR bandwagon,

Fixed rate ends Apr1st.

Got the obligatory phone call and letter suggesting we look elsewhere.
Our outstanding mortgage is £118000approx
Current Value of House is £127500
Unsecured eliment is £25000 approx
Were paying £955.89 a month on a repayment term over 30years (since 2001).
New payment to be £1046.

So not too much of a hike in price, not too worried about the increase but where concerned about NR stability.

If we remorgaged elsewhere may get better deal however to take unsecured eliment with us APR would shoot up to 12.59% so would be paying alot more on that loan. So our reckoning is would we really be better off?

As for the together eliment of our mortgage, spoke to some bloke at NR on friday who really didn't have a clue what he was talking about or even what day it was, however got passed onto another guy who was really quite friendly. He said as it was only the fixed term that was coming to an end and not our actual mortgage then everything that we signed and agreed about (i.e payment hols, overpayments) would not change. Just the rate would change (and if we read the terms and agreement which I have and just wanted it clarifying, it clearly set this out in them). So really there should be no surprises on that front!! He ended our call with what he called a small ray of sunshine, rates had gone down again to 7.39% (big wow I hear u cry) and that our monthly payment is now £1037. SO although its not good, it is getting slightly better.

I was lucky, got a decent man to talk to, and now our minds made up. We are staying put (not thro need but thro choice). If things alter radically in next year then we are free to move if we please. NR are in a mess, but as I have read elsewhere it's not looking particulary rosie elsewhere either...

kingkano

Thanks for the clarification on the flexibility lemonade_lifestyle. Very good to know! Looks like you've thought it through pretty well. Unless you could refinance the loan seperately as well then that's about right. There are some ok personal loan rates at the moment although 25k is a pretty big one I'll admit.

MarkyMarkD

Lemonade It's useful and refreshing to have a sensible appraisal of the situation by someone who's actually in it.

If everyone believed the papers, they would think that everyone in your situation was on a guaranteed path to bankruptcy, whereas we are actually talking about an increase in monthly mortgage payment of well under 10%.

Well done for making a rational choice, and sharing it with us, rather than panicking.

emily24_2

Ive got NR mortgage-variable rate for 3 years until sept 2010
Value of house £110000, mortgage £117000 (7000 unsecured)
Looking to move to a house worth £125000-130000 and are wanting to port current mortgage as we have funds in savings to cover rest of cost of purchase - will there be any credit checks etc or do you think it will be fairly straight forward? Anyone know?

MarkyMarkD

Emily

Porting is a new mortgage as far as underwriting is concerned. Even if you are borrowing the same amount of money, it will be subject to credit checking. There's every possibility that even if none of your circumstances have changed, NR may refuse your application and leave you lumbered with paying an ERC.

Given that, though, the LTV on your new mortgage may be around 90%, there's more probability they will want to keep you as a customer.

emily24_2

Thanks for that, i thought as much after reading the rest of this thread

PRINCESSKERRY

I have been reading this thread with interest, I too have a NR mortgage fixed rate for 5 years 5.15% set to expire early 2011.
Our mortgage is for £63,000 and our property is valued at between £145,000 - £150,000 now.
But we are putting our house on the market in the next few months and are wanting to move to a house up to the value of £190,000.

But my question is I was considering paying off NR as they were great to us starting on the property ladder but there are always such steep get out clauses and as we are moving I'm wondering if it will make more sense to get out now. Also that is assuming they would lend us the extra money, obviously the extra money would go on there SVR. As far as whether we could afford it or not that wouldn't be a problem I'm just not sure if they are lending anymore at present anyway.

Any advice would be appreciated.

conar686

• 2 CCJ obtained when I was less aware of my consumer rights they'd never get them today
• Mortgage with Northern Rock ending in Apr 08.
• Despite flawless payment record, Northern Rock underwriters unwilling to offer owt other than standard variable too expensive.
• Due to CCJs other Mortgage companies not offering anything over 75% need a minimum of 85%
• CCJ contain charges and could be set aside if I could get courts action
• Courts stayed all actions on all cases with charges in the title until OFT case concludes
• Rang FOS they can't help
• Rang FSA to be told they can't help
• Emailed my MP no response

I'm caught between the Govt (NR) on one hand and the Govt (OFT/FSA) on the other. Anyone got any options I've not thought of welcome, anyone know someone in the media who might like do an article?

MarkyMarkD

Nothing helpful, unfortunately.

All I can do is point out that if your payments on SVR are too high, you should have taken a longer term fixed/discounted/tracker rate in the first place.

Most of the problems NR customers are facing are due to them assuming, wrongly, that they'd constantly be able to switch products and they'd never have to pay the "revert" rate on their mortgage.

Your mortgage does not end April 2008 - that's the flawed concept common to these posts. You bought a 20/25/30/40/whatever year mortgage which was at an incentivised rate only until April 2008 with an SVR revert rate.