Northern Rock End of Mortgaged Deal (Merged Threads)

dunstonh

Sandler has already said that it not be run as a closed book and run down. It will be restructured and almost certainly downscaled but the intention is to sell it as a going concern.

To say they dont want new customers is plain daft. That is not the case. However, they are less likely to take on unprofitable business and buy market share which is what they were doing before.

seraphina

Sorry to derail your thread, OP...

NRK will want new customers - but only savings customers. It should have few problems getting these if it can offer attractive rates (6% plus) as it's effectively backed by the government.

However I can't see them being anything other than desperate to get rid of their mortgage business - given that they're renowned for their 100+ products, I suspect that their loan book is highly susceptible to a fall in houseprices. The more borrowers it can get shot of, the better.

johnycoldears

chappers wrote: »

Agree with MortgageMamma i think the next few months will see NR becoming a bit more competitive again, in order to attract a few more customers.

Fraid not.

NR's brief is to offload as much of their mortgage debt as posiible. They are going to deliberately encourage existing borrowers at the end of their term to seek new deals elsewhere. This will be done, at least partly, by offering high, uncompetitive rates.

They are trying to encourage new savers and reduce their liabilities - it is the only way to get them out of public ownership.

WTF?_2

seraphina wrote: »

Sorry to derail your thread, OP...

NRK will want new customers - but only savings customers. It should have few problems getting these if it can offer attractive rates (6% plus) as it's effectively backed by the government.

However I can't see them being anything other than desperate to get rid of their mortgage business - given that they're renowned for their 100+ products, I suspect that their loan book is highly susceptible to a fall in houseprices. The more borrowers it can get shot of, the better.

Unfortunately, their hands are tied over a lot of their mortgage book as it's locked up in an offshore 'Charitable Fund' called Granite. This has long term debt commitments (up to 50 years) to some of the major players in global finance and requires a certain amount of active mortgages to 'feed' it.

Keep your eyes out for this in the press ... I think it's going to emerge as a massive scandal in the coming months.

lynnexxxo

I don't really understand why NR would want to get rid of all the 'good' customers with low LTV ratios and less chance of defaulting. Doesn't make sense to me???

mircea

Hi
Thank you for all the 'comments' none of which so far have really answered my question or offered any advice. If anyone out there could offer some advice or information which would be useful rather than arguing the 'agenda which NR has' I would really appreciate it!!!

dunstonh

mircea wrote: »

Hi
Thank you for all the 'comments' none of which so far have really answered my question or offered any advice. If anyone out there could offer some advice or information which would be useful rather than arguing the 'agenda which NR has' I would really appreciate it!!!

You are too far away to decide what to do now. A lot can happen between now and April when you should start looking at the deals.

Remember that monthly payments are just part of the cost. Remortgaging may end up more expensive than staying with the same lender once all costs are considered.

Rover

Re advice, see below.

MortgageMamma wrote: »

Its difficult to say what is best without knowing the ins and outs of your finances but you have ages yet, your deal doesnt go up until june this year, sit and watch what happens with NR and the market as a whole until end of March

MM

Before your deal is up, the BoE may have reduced base 0.25%. Unfortunately banks are not obliged to pass them on verbatim.
I am presuming, as you are interest only, you will not be an attractive customer for new deals as you will have little equity? Short to mid term, the outlook doesn't look good for the housing market and remortage rates etc.
There are ways around the LTV threshold for new deals via unsecured loans to reduce remortgage amount. See the other threads.

iwassomeoneelse

mircea wrote: »

I am also worried about our credit rating, I am currently reducing my overdraft by £100 a month so by September i will have a £300 overdraft limit, we have no credit cards any more as we paid them all off. A loan which finishes in July and one which finishes in October next year, we have never missed a payment on any of them.

Do you think we should shop around for a better deal and if so are Charcol worth going to? Other option is we sell the house, pay £16k off the unsecured part with the profit from the house sale, move into rented and wait for the market to settle?

Any ideas anyone?

Thanks.

From what you've said above I can see no reason to worry about your credit rating, but you can check this (for free via Quidco, I think)

I wouldn't necessarily say you're too early to look, as First Direct for example will hold funds for six months, and people are finding them a bit slow at the moment as they're very busy, so I'd start to look. Charcol may be worth talking to, you don't have to take their advice after all. You can do most lenders directly over the internet.

As for selling and renting, that's a different type of decision altogther, a much more personal one. You could end up with the attitude of a forced seller and take a lot less than you could get - that's presuming you can complete a sale by 1-6-08...

Conrad

Its impossible to give pertinent advice given we have no idea of the exact state of your credit rating.

In summary 100% lenders will only accept very clean credit profiles.

Would 95% be ok?

Also the new lender will want N Rock not to have in place a charge that could in any way affect the new lenders ability to repossess sucesfully. I have heard sometimes this can be a sticking point.

Charcoal used to charge a 1% fee, so best to check the fee level first.