Northern Rock End of Mortgaged Deal (Merged Threads)

MarkyMarkD

Skintflint Absolutely. NR's main error was in trying to run things too close to the wire - needing to fund mortgages as soon as they'd advanced the money rather than pre-funding them.

missymouse

Hi i am new here.

I have read with great interest this post. Alas we are with N/R on a good deal of 4.89 until July 1 08. Most of it is secured but we borrowed an extra 20K for an extension and owe about 87K. Our house is worth alot more on paper. We have been overpaying each month for about 2 years' and were hoping to continue doing so.

We were hoping not to move from NR but it looks like we will have to. People have recommended London and County to me. I am thinking of a 5 year deal. Do you think we will be able to get anything. i am trying not to worry. I have never experienced this before with mortgages.

We could stay on the standard variable but it would be madness i think

jamesd

Whether you can get another deal depends on the mortgage payment affordability calculation and loan to value. From your description it sounds likely that you'll be fine. You can usefully start looking for a new deal between now and a couple of months from now. Offers are generally valid for 6 months and at the moment the trend is for new offers to be getting worse than withdrawn offers. Many decent offers are also getting withdrawn quickly when lots of people go for them.

L&C are one of the brokers you can try. Also worth trying a local one. Be sure to let the local one know that you're comparing with L&C, just in case they don't want the business if they have a chance of doing the work but not getting paid.

No harm to ask NR what they will offer you as well. They might come up with a surprise. Not really likely though.

zipman23

Sarah-Jaynef wrote: »

I have just had a call from my bank saying I should have/ will be getting a letter from Northern Rock saying that we should be looking to move our mortgage with them to someone else? has anyone received one of these letters? Is this what we should be doing.
thanks
SJ

I'm a postman and I've been delivering "quite a few" of these Northern Rock letters. Obviously I don't know what they say inside though. My sister works for Barclays and she's been told that Northern Rock are telling their customers they won't be offering them a competitive deal when it comes to renew which is understandable so are advising them to look elsewhere.

Then again, my girlfriends parents got the NR letter - but I haven't seen it - but they don't have a mortgage as far as I know as I'm sure they rent. Maybe its about loans aswell? Not that I would know if they had one of those either though.

My mortgage with the NR ends Jan '09 so I've got plenty time to keep my eye on things!

Loz1984

The letters just state that they are downsizing so will not be able to offer competitive rates at the end of current deals.

Can someone clarify what happens at the end of a fixed term? Do we simply revert to the NR SVR? Does anyone know what the SVR is at the moment?

Thanks,
Laura

lotto-dreamer

Loz1984 wrote: »

The letters just state that they are downsizing so will not be able to offer competitive rates at the end of current deals.

Can someone clarify what happens at the end of a fixed term? Do we simply revert to the NR SVR? Does anyone know what the SVR is at the moment?

Thanks,
Laura

NR's SVR appears to be 6.74% at the moment (received letter today re my mortgage)

Also received another letter today from NR saying that they will not be able to offer mortgage customers a "competitive new deal" when their current rate comes to an end. No hint of what it will be though.

In spite of everything - NR are very quick and efficient to deal with and always very pleasant to speak to on the phone! Customer service has always been good.

luckyfool

neverdespairgirl wrote: »

I'm sure you did have to have a good credit rating, but nevertheless, more than 100% LTV seems like sub-prime to me.

In any event, NR definintely did sub-prime. I remember seeing a link on their website for brokers to click on to arrange mortgages for sub-prime borrowers - in September 2007!

Northern Rock did not actually lend on Sub-Prime mortgages. They rebranded and processed sub-prime mortgages which were funded by SPML (Lehman Brothers). Any of these mortgages were owned and serviced by SPML.

luckyfool

wyman100 wrote: »

From the information you have prodivided I am sure we can help you raise up to 85%
Please click below to speak to one of our qualified advisors:-

http://www.fairman-financial.co.uk

You're not allowed to advertise your services on here.

Also, remortgaging to a lender willing to accept the ccj's is unlikely to make any sense at all unless you are needing to raise money.

The SVR from Northern Rock may well actually be better than what you would get elsewhere.

lotto-dreamer

Found this

"If they have to stay put then they will automatically start paying at the Rock's current standard variable rate, which is 7.59%....."

from:

http://news.bbc.co.uk/1/hi/business/7322427.stm

kingkano

Not sure where 6.74 came from - that'd be a blinkin half decent rate tho!!

Their current rates are -
Loyalty Rate of 7.34% pa variable (had mortgage for 7yrs with NR)
Standard Variable Rate of 7.59% pa variable