Northern Rock End of Mortgaged Deal (Merged Threads)

Mr_____Bond_2

mircea wrote: »

Hi
Received our letter today from NR saying our mortgage repayments on 1.6.08 will go up to £1048 on our Interest only together mortgage! our current payment is £798.

Ideally we would like to get back onto repayment but no way can afford it with NR! However, if we move our mortgage but leave the 'together part' with NR we will have to increase our payments on the usecured part as we are no longer with NR, is any of this making sense?

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.

It is now possible to loo at your own credit report on the internet for free so if you do this it may eliminate any concerns you may have, or at worst you will have a clearer understanding of what the lenders see. Experian is another site you could use.

It sounds like you have managed your finances as the lenders are more concerend that you keep up repayments which you appear to be doing.

It is definately worth shopping around for a better deal. Charcol or any other independent broker can give advice and then you will be in a more educated position to make the right decisions.

Selling in renting is a question a lot of people have asked lately so would depend on a lot of other factors in terms of time scale and objectives you have for doing this. If you look at property as an investment as well as a home it has been said you should look at property over the medium to long term, but there will be winners (as well as losers) gambling on the property downturn, as there also is on any property upturn.

Good luck with your decisions.

thfccambs

Mr_____Bond wrote: »

It is now possible to loo at your own credit report on the internet for free

Do you have a link please?

MarkyMarkD

sappho wrote: »

Sorry to hear that Tobytoes, I too am 57 years old with a Northern Rock mortgage.

Anyone heard if NR will be passing on the recent 0.25% rate cut to its poor customers?

Sappho

No, just 0.10%. Which is rather shocking given that the government is banging on at mortgage lenders to "pass on" the whole 0.25% to their borrowers.

ger_ryan22

Hi good folks, just been reading the posts here and I feel so sorry for all us fools who got roped in to a deal with NR! It's disgraceful what's gone on. We bought our house last October through NR, the house was on the market for 130k, we got a mortgage for the house for 119k with an 18k unsecured loan for a deposit and credit card payments. We're in a fixed 2yr until Oct 09' @ 7.15% which means we're paying 760 off the mortgage each month in interest and equity and 120 off the unsecured loan. Before I start to lose the will to live altogether, how bad are things for us and what advice could you give us? I too got one of those letters from NR basically saying "get the hell out"! I know we've got a year and a half left but I was wondering what we could do now and also how much could our payments rise each month when our deal runs out should the current state of NR continues as we're stretched even now to be paying what we're paying!

Any help is much appreciated

Thanks in advance!

sappho_2

MarkyMarkD wrote: »

No, just 0.10%. Which is rather shocking given that the government is banging on at mortgage lenders to "pass on" the whole 0.25% to their borrowers.

Is there anything we can do to force government to pass on full cut? Hopefully someone somewhere will expose this hypocrisy on the govt's part?

MarkyMarkD

I think it would be a good thing to get your MP onto, assuming your MP isn't a Labour one (or they are, but a rebellious sort)!

freddy08

I've been reading through much of this thread & its good to compare & take advice from others in the Northern Rock together situation.

My Girlfriend & I took a joint mortgage out last year for £210,500

Secured - £180,500
Unsecured - £30,000

We have 6.49% fixed until 2012 so at least time is on our side, at a push I can save £15-20k between now & then so hopefully that will give us more options when it comes to re-mortgaging.

Current house value is £195-200k. I'm hoping the market will at least re-cover to current levels by then but it seems we need to be prepared for the worst!

Any advice would be gratefully taken on board.

Wiluwrite

Our NR fixed rate ends on 1st July so have spent 2 days reasearching new deals. NR deals are pants no chance of staying with them. Rang L & G they got back 2 me this aft with a deal but have found HSBC are doing Rate Matcher to match your previous deal. Hope can get sumthing sorted soon. Which ever way lots of charges are around £1000. Nice to no we not alone in this mortgage mess!!!

sappho_2

MarkyMarkD wrote: »

I think it would be a good thing to get your MP onto, assuming your MP isn't a Labour one (or they are, but a rebellious sort)!

I've written to my MP today to highlight Gordon Brown's hypocrisy, asking banks and building societies to pass on bank rate cuts to those of us with a mortgage in full. Why has Northern Rock only passed on a cut of 0.10% this time, and NEVER passed on any of the other base rate cuts in full?

Incidentally, my MP is a Tory.. Will update this forum when I receive a reply. In the meantime all of you, write to your MP!

andy_ward

I totally agree, its the poor old northern rock customers who are having to pay the price for the banks mis management, as for good old Gordon he has proved yet again he cannot be trusted. Northern Rocks standard variable rate is now 0.50% higher than most others and we all know he could instruct his puppet at the rock to lower rates in line with the BOE.