Northern Rock End of Mortgaged Deal (Merged Threads)

skinnybowler

Spidermev - You do not "apply" to get the overpayments from the secured part of the mortgage back. It is in the terms and conditions that you can withdraw them as long as you have overpaid by more than £500 and the withdrawal is more than £500.

When I have done it, the money is back in my bank account within a few days - all done over the phone, no need to fill in any forms, etc.

I do agree that you should keep an emergancy fund outside of the mortgage if possible (after all, this isn't a proper offset mortgage). However, I would limit this to a couple of months.

In my case, I have about 1 month in savings and access to another 3 months via credit cards if absolutely necessary. This is on top of any overpayments I have made.

spidermev

"Borrow back

If you make overpayments which total at least £500, then subject to NRAM’s prior agreement, you may be able to borrow back some, or all, of the amount overpaid."


This is a copy/pasted from NRAM's website, note the use of the word "may", it's not guaranteed that they will allow you the money back. If you search on google you will find cases that have been denied. At the end of the day it's not a savings account, it's a mortgage and should be treated as such.

semanticist

spidermev wrote: »

"Borrow back

If you make overpayments which total at least £500, then subject to NRAM’s prior agreement, you may be able to borrow back some, or all, of the amount overpaid."


This is a copy/pasted from NRAM's website, note the use of the word "may", it's not guaranteed that they will allow you the money back. If you search on google you will find cases that have been denied. At the end of the day it's not a savings account, it's a mortgage and should be treated as such.

The language on NRAM's website doesn't matter, what matters is the language in each person's mortgage contract, which may vary according to the product and when it was taken out.

Also, it seems like you're arguing a hypothetical against other people's real experiences. I'd be more inclined to go with advice from people who have actually overpaid and then withdrawn.

The other option for 'withdrawing' could be payment holidays - if you've overpaid then you can skip monthly payments equivalent to the overpayment. There's no 'application' for payment holidays, you just call up and arrange it. I did this last year when I quit my job.

Thrugelmir

semanticist wrote: »

The language on NRAM's website doesn't matter, what matters is the language in each person's mortgage contract, which may vary according to the product and when it was taken out.

Most contracts will contain a clause to vary terms if the lender so wishes. Most unlikely to be set in stone.

spidermev

semanticist wrote: »

The language on NRAM's website doesn't matter, what matters is the language in each person's mortgage contract, which may vary according to the product and when it was taken out.

Also, it seems like you're arguing a hypothetical against other people's real experiences. I'd be more inclined to go with advice from people who have actually overpaid and then withdrawn.

The other option for 'withdrawing' could be payment holidays - if you've overpaid then you can skip monthly payments equivalent to the overpayment. There's no 'application' for payment holidays, you just call up and arrange it. I did this last year when I quit my job.

I was merely stating my preference. I personally wouldn't risk it. I would rather have a stash in savings that I am guaranteed to get back within 2 hours of clicking the mouse.That hypothetical argument has meant I have never needed my overpayments back

gambo1

I took out a mortgage 4 years ago with Northern Rock. I was on a deal. I am now paying 4.79% which is their SVR. I contacted NRAM where my mortgage is now placed and asked them about any deals I could enter in to now.
I was told that they are not a bank or a building society and cannot offer any further deals. They just suggested I go elsewhere.
Has anyone contacted the FSA about this. All of us who took out mortgages with NR originally seem to have been shafted as a result of their being bailed out.

goaten2000

gambo1 wrote: »

I took out a mortgage 4 years ago with Northern Rock. I was on a deal. I am now paying 4.79% which is their SVR. I contacted NRAM where my mortgage is now placed and asked them about any deals I could enter in to now.
I was told that they are not a bank or a building society and cannot offer any further deals. They just suggested I go elsewhere.
Has anyone contacted the FSA about this. All of us who took out mortgages with NR originally seem to have been shafted as a result of their being bailed out.

I'm curious on your logic on this one. NRAM or Northern Rock are not obliged to offer new deals. When you took the mortgage deal (Whatever it was) you knew that it was for a fixed term and that at the end of that you would move onto the SVR - this would have been part of the T&C's of the mortgage and would have been on the key illustrations document.

gambo1

I was reading the Northern Rock website which suggested that you should contact them if you had a deal that had ended. This prompted my enquiry.

goaten2000

The Northern Rock website may well suggest this but I cannot see this on the NRAM website.

When NR was bailed out, 90% of mortgages went to NRAM (the so called bad mortgages) and the rest stayed with Northern Rock. They are two seperate companies now... NRAM purely exists to manage / honour existing mortgages, they are not offering new deals and I imagine will not exist once they clear their mortgage book.

I would hazard a guess you're with NRAM, in which case, they are right, you will either need to stay on their SVR or remortgage elsewhere if you are are able to do so.

Thrugelmir

gambo1 wrote: »

I was told that they are not a bank or a building society and cannot offer any further deals. They just suggested I go elsewhere.
Has anyone contacted the FSA about this. All of us who took out mortgages with NR originally seem to have been shafted as a result of their being bailed out.

You haven't been shafted. As NRAM will honour your mortgage contract. The FSA do not rule on the grounds of commerciality as that would amount to interfering in the running of the business.

If you are able to remortgage then doing so is the advisable option. As you should be able to secure a better rate.