Northern Rock End of Mortgaged Deal (Merged Threads)

Loz1984

Thanks for the help.

7.5 ish sounds more like it! I thought 6. something was too good to be true ! Ah well!

What is the SVR based on? Is it likely to move drastically in the next couple of years or do people think it will stay roughly where it is? My fixed rate doesn't end until Nov 2009 so a little while yet!

kingkano

It's loosely based on the BOE rate. In reality it's based on the money market rates ie what the bank can borrow the money at, plus a random number they decide they want to make on top.

SO even though the BOE rate is dropping, NR is probably having a hard time getting cash due to the credit crunch, and also they want their SVR to be as less appealing as possible to get people who can to switch.

I'm not sure it will go up unless the BOE rate goes up. But then I can't see it going down much either. Even when the BOE rate does! Budget fopr 8% and you should be OK.

riddlesticks

Hi all,

I know you have been answering peoples queries and Im probably going to ask the same questions but I just cant get my head around it so if anyone could help I would really appreciate it.

Our situation is - we got a 100% repayment mortgage fixed for three years which is due to end in October. Our mortgage was for £88000 - £83600 was actual mortgage and £4400 was a loan. The house prices here have gone up very slowly but they seem to sell quickly. Two have been up for sale in the last six month and have sold within weeks. A property up the road has recently sold and it is basically the same as ours. It was up for £99950 but obviously I am not sure what the actual selling price was (will keep checking that website that tells you the actual price). Our mortgage is just under three times our joint salaries. I only work 12 hours/ week for rubbish pay (its a flexible job and works around my kids) at the mo and am willing to go back to office type job for a lot more hours and a lot more money if needed.

Now we are not overstretched and if we had to pay for example £100-£150 (maybe more) per month we could survive although things would be very tight. We do have debts also. A big loan (also with northern rock) which has another 4 and a half years left and a big ish credit card which we are paying off as much as poss.

The debts I have are mostly down to my partner who was really up to his neck in debt before we met. I have managed to sort them out and get him to live to his means. He was so dreadful with money and was a constant late payer but since I took over I managed to sort this. I have however made two big boo-boos recently. We only switched our debt to the above CC six months ago and the first month I set it up a standing order to come out of our acc. I set it up to come out 5 days later which I thought was what they meant when the said you had to give 5 days notice but this was incorrect I had to set it up to come out on that day and allow five days to clear (doh!). Also made a direct payment the other day but got the wrong day and the money should have been in on Sunday but it went in the following day Monday. I am so annoyed with myself because we had the money its just down to me being so stupid (but wont make that mistake again). Anyway other than that we have never ever missed a payment on anything.

Can someone please advise me on what to do>? I hope Ive give enough info for you to be able to judge our situation. We where considering consolidating the big loan and CC and try pay it off over 4 years. Or should we just leave it as it is. Should we also consider adding the unsecured loan off the mortgage and pay all them off together which should leave us in a better situation? Do you think we have any chance of being able to switch mortgage to another company or do you think we might be stuck?

Thanks in advance and apologies for the essay.

AMxx

Sammz

Wondered if anyone could help me. I am reading and reading but still not convinced I know what's going on

I took out a £55k (some was unsecured loan) 100% mortgage with NR in Nov 05 for 3 years at a rate of 6.29%. As of 29 Feb I have £49,486 on the mortgage and £3575 on the loan. The ERC date for the mortgage is 1 Jan 09. Does this mean I have to pay 1 month at the SVR? And could someone tell me what my payments would be on the SVR?

I should be ok to get a new mortgage, shouldn't I? Maybe even on a better deal? I have no debts but not much savings (will work at changing that though!) and a good credit history.

Property prices are dropping a bit here. My flat would've sold for £125k late last year but there's been one on the market for a month or so now. Started at offers over £99k and has dropped to offers over £89k.

I know it's a while until I can remortgage but I'd like to make sure I know what I'm doing and when! Think I've included all the info needed

MarkyMarkD

The "3 years" probably isn't actually 3 years but until 1 Jan 2009.

Based on your low LTV, you should have no problem remortgaging the whole lot as long as your income is sufficient.

riddelsticks Pay your credit card minimum payment by DD. Then you will never get penalised for not paying. Pay any extra you want to pay by other means.

Sammz

MarkyMarkD wrote: »

The "3 years" probably isn't actually 3 years but until 1 Jan 2009.

Based on your low LTV, you should have no problem remortgaging the whole lot as long as your income is sufficient.

Phew! Thanks for putting my mind at rest. My income is sufficient. So if it's January I should start looking around September/October? Be nice if prices had dropped enough for me to afford a two bedroom place

littlewing_uk

Hi all - this is my first post and hopefully someone will be able to offer me a little advice.
I have a 125% mortgage with NR - i think it's fixed at about 6.8% give or take until Sept 2009. The secured amount is 118k and the unsecured loan at the same rate is about 30k.
I had every intention of staying with them and re-mortgaging to a fixed for another few years, but now they have withdrawn their 125% as everyone knows.
My house has probably increased in value by about 5k if that.
So, when it comes to the end of the period, i am a bit stuck. If i stay with them my rate willl shoot up to their variable along with the rate of the unsecured loan. If i move my mortgage to someone else, my unsecured loan shoots to approx 15% APR (i checked the small print in my contract).
Surely, their move to stop their mortgage offers has restricted my movements somewhat, and i feel like i am being held to ransom for quite a high price. There is no way i can afford 30k loan at 15%, but no one else will give me that along with 100% mortgage at about 118k. So all in all, am i stuck?
Any suggestions or commiserations??

Lux_K

Hi wonder if anyone can advise, I'm coming to the end of my 4.75% fixed with NR in Nov 2008. I've checked Moneysupermarket recently and there are a few deals I'm interested in, heard Martin on the Jeremy Vine show today talking about paying to a deal available now for later in the year was in the car and had to leave so I missed most of the detail does anyone know how this works?

Thx

riddlesticks

littlewing_uk wrote: »

Hi all - this is my first post and hopefully someone will be able to offer me a little advice.
I have a 125% mortgage with NR - i think it's fixed at about 6.8% give or take until Sept 2009. The secured amount is 118k and the unsecured loan at the same rate is about 30k.
I had every intention of staying with them and re-mortgaging to a fixed for another few years, but now they have withdrawn their 125% as everyone knows.
My house has probably increased in value by about 5k if that.
So, when it comes to the end of the period, i am a bit stuck. If i stay with them my rate willl shoot up to their variable along with the rate of the unsecured loan. If i move my mortgage to someone else, my unsecured loan shoots to approx 15% APR (i checked the small print in my contract).
Surely, their move to stop their mortgage offers has restricted my movements somewhat, and i feel like i am being held to ransom for quite a high price. There is no way i can afford 30k loan at 15%, but no one else will give me that along with 100% mortgage at about 118k. So all in all, am i stuck?
Any suggestions or commiserations??

Sorry I cant help but just wanted to send hugs. We only got 100% I think our house is now at 85% LTV so I think we might be alright but its so annoying. Just wondering though how you managed to get 125% mortgage. I didnt think they even existed.

MarkyMarkD

Sammz, Lux K Most mortgage offers are valid for 6 months, so it's possible to apply for a remortgage 6 months before you intend to actually switch lenders. The benefit of doing this in the current climate is that you know you are sorted and don't have to worry about lenders withdrawing products. But if you are opting for a fixed rate, it may not be a good idea as most lenders' fixed rates are fixed to a certain date, not for the nominal "2 years" or "5 years".

What I mean by this is that if you apply now for a 2 year fixed, it is more likely to be a fix to 31 May 2010. So if you complete on the mortgage by 31 May 2008, you'd get the 2 years. If you don't complete until November, you'll only get 18 months on the fixed rate.

There are ways around this - like many lenders will let you change product, after the offer has been issued - but often it will cost to do this.

IMHO if you want to buy 6 months in advance, either you want to choose a tracker or you want to choose a lender where 2 years means 2 years - the most obvious of which is Nationwide.

riddlesticks NR, and about 5 other lenders, offered 95% secured and up to 30% unsecured, totalling up to 125%. (Abbey offered the whole lot secured, but they were an exception).