Northern Rock End of Mortgaged Deal (Merged Threads)

swift274

fixed rate 7.49% yes i could afford this when I took it out but in all honesty I should not have took overtime into consideration northern rock should not have taken this as earnings and my so called financial advisor should not have advised me to take overtime into consideration

current variable rate 4.79% Taken from there website im sure you can see there is a massive difference there and difference will taken this from a pottential 50k loss on nrams books to an account being paid on time and upto date is this really good bussiness sense???

Barny1979

swift274 wrote: »

fixed rate 7.49% yes i could afford this when I took it out but in all honesty I should not have took overtime into consideration northern rock should not have taken this as earnings and my so called financial advisor should not have advised me to take overtime into consideration

current variable rate 4.79% Taken from there website im sure you can see there is a massive difference there and difference will taken this from a pottential 50k loss on nrams books to an account being paid on time and upto date is this really good bussiness sense???

Why did you go for a fixed rate at 7.49%, I assume that was as good as you could get?

swift274

At the time this was the best deal for us (as advised) and at the time affordable now its not surely sense would say if there variable rate is affordable why not let us have it (we would be on it in 10 months anyway) but no it seems repossesion and me filing for bankruptcy resulting in massive losses for nram is a better option (in there eyes)

bhindi

swift274 wrote: »

fixed rate 7.49% yes i could afford this when I took it out but in all honesty I should not have took overtime into consideration northern rock should not have taken this as earnings and my so called financial advisor should not have advised me to take overtime into consideration

current variable rate 4.79% Taken from there website im sure you can see there is a massive difference there and difference will taken this from a pottential 50k loss on nrams books to an account being paid on time and upto date is this really good bussiness sense???

This sounds incredibly harsh and so I am sorry, but if someone who is struggling to afford their mortgage presented their overtime as earnings towards their mortgage then its' just deserts'. I imagine you scraped everything together to reach the figures that gained you your mortgage and maybe you were just naive, but by my own experiene the bite on the bum that you are recieving is actually quite modest. I am pretty rough at doing sums but the difference of 4.79 to 7.49% is not incredibly vast. It has nothing to do with negative equatity, if you want to keep you home, I would take on a 2nd job for a period and cut out every luxury, and live incredibly frugly (sp?). If you want to fight and not give up, I am sure you will suceed.

Either way, this will be a learning curve for you, and I wish you all the best.

semanticist

Barny1979 wrote: »

Why did you go for a fixed rate at 7.49%, I assume that was as good as you could get?

Interest rates were higher before the last recession. That's pretty normal - one of the ways governments deal with financial problems is to lower the interest rates.

Our fixed rate, from September 2007, is 6.9%. Dropping to SVR would mean significant savings for us too.

It's extremely unlikely that the SVR would hit 6.9% any time soon - raising interest rates would, according to the standard thinking, tip us back into recession. (Or slow growth, if we had any.)

So it goes, though. This is the main risk of a fixed-rate mortgage - it shields you from rate rises, but also prevents you from benefitting if the rates fall. If the housing bubble hadn't burst interest rates would likely have gone up and we'd be glad for our fixed rate instead of cursing it.

vinny1684

Hi all,

I have a 5 year fixed mortgage (5.95%) ending in January 2012,

This is my first mortgage so I am new to it all and I think I know what will happen when the time comes, but not sure!

I am presuming that I will go on the standard variable rate which I think is about 4.7 or something like that.

At the time of buying my house, it was 80k and basically I think im now in negative equity.

Oh and also when I get the letters from NRAM im sure it says I owe nearly what I started at!

Any advice what I should do? should I just stay on the SV rate? (if thats whats going to happen!)

niccatw

If you are with NRAM and you are in negative equity, then the chances are will have to stay with NRAM on their SVR, especially as you say you owe nearly as much as you did when you took the mortgage out.

I'm in the same boat, only I came off my fixed rate a while back. Can you afford to keep your payments the same as they are just now on the fixed rate? That's what I have done in an attempt to overpay and perhaps be in a position to jump ship sooner rather than later.

carlw

Hi,

I currently have a Northern Rock Together mortgage. Im in the process of remortgaging and leaving NRAM. It is all going through now, and will be completed in the next few weeks.

I was on a 3 year fixed from dec 2006 so have been on the SVR for a while and have managed to pay my mortgage down so i can get a 85% ltv mortgage else where.

Does anybody know the terms surrounding the mortgage exit fee of £250 (not early repayment fee). The key facts states that this fee is £250 but if there is anyway for me to reduce or avoid this then i am obviously keen to do so. For example is it payable when the secured part of the loan is closed, or do i have to close the secured and unsecured part for it to be incured. If the later was the case, i could leave a small balance on the unsecured loan of £1-£10 to avoid the charge.

Thanks

Carl

want2bmortgage3

Hi everyone. My deal with NR ended almost a year ago and I have been paying 4.79% (their SVR) since.
I have looked into a re-mortgage but was told due to my income and other debts I had no chance of a new deal. However, in the last 6 months I have paid back all my other debts and might be able to get a deal now. Would you advise fixing for 2 years? I have seen rates as low as 2.99% available. My details are it will be a 5x income and LTV is 66%. Thanks guys.

zipman23

I was in my local NR branch last week and they told me that now Virgin Money are taking over there will be some very competitive mortgages on offer! I'm currently with NRAM on SVR so I don't think I'll be able to get a better deal as I think we owe about 96% but got an appt booked anyway!