Northern Rock End of Mortgaged Deal (Merged Threads)

Sammz

I'll keep an eye on things and see what happens.

Um, stupid question time - who do I go to to remortgage? I assume I don't have to go back to the person who got me my first mortgage. Should I ask around for recommendations? And is it best to save to pay the fees upfront? I'm in Scotland, if that makes a difference.

lotto-dreamer

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I had every intention of staying with them and re-mortgaging to a fixed for another few years, but now they have withdrawn their 125% as everyone knows.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??

If the SVR is very high and you have no choice but to stay with NR perhaps you could go interest only for a while?

All it takes is a phone call to NR - they send you a form, ask for £75, and the changeover from repayment to interest only will be done very quickly.

It could help you as a temporary measure - not ideal as your outstanding balance won't shrink -but it might ease your situation until you can find another mortgage.

Good luck!

aah

UK007BullDog wrote: »

QUOTE:

A spokesman for NR says: "we said we were taking prudent steps to reign back our lending.
.....

It really would help if they could spell...

aah

Rachman wrote: »

Writing to NRK is a waste of time. Your local MP is better - (SHE or) he owns it now.quote]

fed up of being invisible

a.

sdooley

To littlewing, the borrower on the NR 125% mortgage, very sorry to hear about your worries. However you have a little time to plan.

One idea would be to save or overpay as much as you can before September 2009 - if £8,000 were possible, say, you might then look to borrow £28,000 unsecured next summer - if you can get a rate lower than 15% - to repay the loan part (assuming you'd have paid £2,000 of the loan anyway).

Then maybe the mortgage part will have gone down to £114,000 of its own accord, subtract the £8,000 you save and you are in 90-95% mortgage territory - giving you a good chance of getting a better rate.

Of course the markets could get even worse by then, or Northern Rock's offers might get better, but if you can put aside even £4,000 over a year, it could make a huge difference.

p.s. Welcome to Money Saving Expert and hope you get a good result from the other money saving on the site to help you solve this.

aah

Hi there everyone, sorry for spurious posts above.

Now I know it is really cheeky to ask for help, but I am a NR mortgage holder too, actually I have two mortgages, for two residences, one with NR and the other with Halifax. I don't have a fancy weekend retreat, rather I have a job - and a flat -in the midlands (couldn't get a decent job in NE after old one went ) and my family home on Tyneside.

Like many Northeasterners, our family home is mortgaged with NR. The mortgage, taken out in 2000 for 20 years, is currently coming to the end of a 3 year fix at 4.69, now with 12 years left. I emphatically do not want to extend this term. This debt is around £68k. Added to this mortgage is another 20 year secured loan, on SVR, for £25k, taken out in 2006. I guess the value of this is now about £24k.

Our second mortgage, for the midlands flat for work, is with Halifax. The flat is value around 85k and the mortgage about 55k. It is 4.39% (gulp!)

Our combined expenditure on both mortgages and secured loan, is £1125 monthly. I can see deals on L&C that would mean the combined new loans could be as little as £1216 but I am not sure if we would be eligible.

What I would like to do is take out another mortgage when our current NR deal comes to an end, at a low fee, fixed rate, for the reemaining 11.5 years, on £72k. The LTV is around 32% and we have never defaulted. On the other mortgage, I would like to refinance to take the secured loan into account and add the secured loan and mortgage together for the remaining 23 years, meaning a £73k mortgage on an £85k value flat.

An additional problem may be that we are both over 50, with fewer remaining working years (but with reasonable pension provision) than many lenders would like.

Is this over complicated? I am so sorry if it is, but if not, your help would be greatly valued,

many many thanks
Anne.

MarkyMarkD

Hi Anne.

You don't say when the 4.39% rate on the flat ends. Unless it's coterminous with the end of the NR fixed rate, you are going to have a timing problem. If the time gap is small, you might have to pay SVR on one of the two for that short term, so that you can then rearrange things more easily. (Update: following info from Anne on another thread There is only 2 months between your end dates, so you should definitely just live with paying SVR for 2 months on one part of your debt assuming that ERCs apply within the fixed rate periods).

I don't particularly see why you want to do it the way you suggest.

My perception of your figures is:

Total debt £145k.
House value £225k (£72k / 32% LTV)
Flat value £85k.

Why wouldn't you simply remortgage the house for £145k, meaning a single 64% LTV loan (which will get you the best rates from most lenders) and leave the flat unmortgaged?

For a £145k loan, it would be daft to opt for low fee, as the amount will mean that a middle-ish fee will normally get you the best overall value.

By having two mortgages on two properties, you are doubling the amount of cost involved IMHO.

I know that you want different terms on the two parts of your debt. But there's no point doing that. You can set the term on the aggregated loan to somewhere in the middle of the 11.5 and 23 years you mention - say 18 years - and achieve pretty much the same result. A lot of lenders will be happy with a redemption age of c.70 IMHO.

Mogminnie

Advice would be greatly appreciated.
Have a NR Mortgage due to exprie 1st August.
House value around 250000. Mortgage outstanding 200000. Joint income 61000. At the moment we have a reasonable credit rating no defaults or CCJs. However recently (March) entered into a dmp with payplan to pay approx 71000 of debt. Current mortgage payment 1300. Do I have any options for remortgaging now when my credit rating is ok? Would be easier on DMP if can get the best mortgage deal possible. Don't want to have to offer lower payments to dmp in six months time would prefer to be able to offer more as wage goes up each September.

aah

Becles wrote: »

.........he refuses to go on the deeds/mortgage........quote]

and I take it you charge him rent?

luckyfool

Mogminnie wrote: »

Advice would be greatly appreciated.
Have a NR Mortgage due to exprie 1st August.
House value around 250000. Mortgage outstanding 200000. Joint income 61000. At the moment we have a reasonable credit rating no defaults or CCJs. However recently (March) entered into a dmp with payplan to pay approx 71000 of debt. Current mortgage payment 1300. Do I have any options for remortgaging now when my credit rating is ok? Would be easier on DMP if can get the best mortgage deal possible. Don't want to have to offer lower payments to dmp in six months time would prefer to be able to offer more as wage goes up each September.

Depending on your income, and whether you have fallen behind yet before the DMP was agreed you might be able to sort out a remortgage now. The concern though for any lender would be that they will be assessing your full contractual payments for the £71,000, so its unlikely that they would view a new mortgage as being affordable in conjunction with the £71k in the background. And presumably if your salaries were high enough to support the mortgage and all that unsecured credit then you wouldn't have needed to go into the DMP in the first place.

Bottom line, it really depends on your circumstances. You should really speak to a good broker and run through your full circumstances. Alternatively you could try whoever you bank with, though this would be a waste of time if any of the debt in the DMP was with them.