Northern Rock End of Mortgaged Deal (Merged Threads)

payless

I know mentioned elsewhere0- but thought worth adding to this thread

Lloyds to take on old NR customers at end of deal

http://news.bbc.co.uk/1/hi/business/7437100.stm

MarkyMarkD

That's an interesting development. But the terms are rather vague.

and will have the standard application fee waived.

could mean anything, or nothing. LTSB isn't a charity, and I can't see it offering products to ex-NR borrowers cheaper than to anyone else. Why on earth should they be interested in doing so?

luckyfool

Mary_Hartnell wrote: »

The liquidator could have been within his rights to demand the full mortgage amount back at the end of the month - where do you think the money comes from:
Widows orphans & trustees?

No he couldn't. There would not have been anything in the mortgage contracts to say they were repayable on demand. The mortgages would have been assetts owned by Northern Rock which an administrator could have realised by selling on to another Bank of Building Society, who would take on the rights and obligations of Northern Rock under the mortgage contract.

Mary_Hartnell

luckyfool wrote: »

No he couldn't. There would not have been anything in the mortgage contracts to say they were repayable on demand. The mortgages would have been assetts owned by Northern Rock which an administrator could have realised by selling on to another Bank of Building Society, who would take on the rights and obligations of Northern Rock under the mortgage contract.

If there is no Northern Rock, who are you going to sue for breach of contract?

Nobody has a God given right to borrow someone else's money!

Only yesterday the European commission called for the faster close down of Northern Rock's mortgage book.

The reason we are in this mess is that nobody will take on Sub-prime mortgages and soon that is all that NR will have left.

Mary_Hartnell

Another bunch of sub prime borrowers get the message to re mortgage at Bradford & Bingley.
http://news.bbc.co.uk/1/hi/business/7439469.stm

kingkano

Mary_Hartnell wrote: »

If there is no Northern Rock, who are you going to sue for breach of contract?

Nobody has a God given right to borrow someone else's money!

Only yesterday the European commission called for the faster close down of Northern Rock's mortgage book.

The reason we are in this mess is that nobody will take on Sub-prime mortgages and soon that is all that NR will have left.

Nobody said they did. The money is already borrowed.

If there is no Northern Rock who is going to demand the money/repossess my house? THat's the same person I'd sue. I wouldn't need to sue though. They'd take me to court to repo or whatever, the judge would laugh them out because they won't have any breach of terms by me to justify it.

If they could demand the debt be cleared in full, don't you think they would by now? To clear down the mortgage book quicker? I'd have thought so to be honest.....

BTW sub-prime is definitely NOT all they'll have left. NR did offer very competitive long term fixes. 5, 10 and 15yrs. Especially if you had good equity. Along with the extremely flexible features of their mortgages people liked. This means there is alot of PRIME 100% good business in there on these long term fixes. People who CAN'T leave because of the redemption charges Maybe alot of this is probably packaged off to their arm company?? (I don't understand this bit so much)

Mary_Hartnell

Well, I've not got a mortgage, but I hope that as long as you can keep paying the increasing interest you are right.

I'm no banker and I'm no expert and my attempts to search on this site did not yield much. Funny you would think there was a banker out there who could comment.

For what it is worth, this is what I found:

http://forums.moneysavingexpert.com/showthread.html?p=9499897&highlight=demand#post9499897

http://forums.moneysavingexpert.com/showthread.html?p=6279742&highlight=repayable#post6279742



Fixed rate mortgages were available from insurance companies in the 1950's, but if the insurance company went bust those terms & conditions went with it. The market always levels out, no matter how much the politicians try to interfere.

singingrep

Hi

I am tring to find the best deal as I have had a northern rock together deal and has end earlier this year. I owe 106'000 with 25k on personal loan side and my property is worth roughly about 100'000 - 110'000 acording to what is availible in our area on various estate agents windows for simmiler propertys. I was wondering as I am currently paying interest at around 7% would it be best to stay with them or see if I can get a personnel loan for the 25k and remortgage with anouther lender does anyone know if this is possible or any advice would be welcome as me and the wife have just had twins and any extra savings would come in handy. I have also got a credit card with £3'000 and my wife has a personel loan for 7,500kpa I have sorted the credit card onto a long term low rate and the personnel loan is only a few months old. We do not have any savings to offset and I earn around 30kpa we are paying £1000 a month as have always beleived in over paying to get the amount down asap. I rearlise we are not in a very good position and want to do somthing about it to ease our minds and pockets. Any help would be greatly appreciated.

luckyfool

singingrep wrote: »

Hi

I am tring to find the best deal as I have had a northern rock together deal and has end earlier this year. I owe 106'000 with 25k on personal loan side and my property is worth roughly about 100'000 - 110'000 acording to what is availible in our area on various estate agents windows for simmiler propertys. I was wondering as I am currently paying interest at around 7% would it be best to stay with them or see if I can get a personnel loan for the 25k and remortgage with anouther lender does anyone know if this is possible or any advice would be welcome as me and the wife have just had twins and any extra savings would come in handy. I have also got a credit card with £3'000 and my wife has a personel loan for 7,500kpa I have sorted the credit card onto a long term low rate and the personnel loan is only a few months old. We do not have any savings to offset and I earn around 30kpa we are paying £1000 a month as have always beleived in over paying to get the amount down asap. I rearlise we are not in a very good position and want to do somthing about it to ease our minds and pockets. Any help would be greatly appreciated.

If your 25k loan is on top of a secured mortgage of £106,000, and your estimate of your properties value is accurate, then I think you are going to be best off sticking where you are for the time being on their Variable Rate. I don't see a secured mortgage being available that will allow you to switch, especially given the affordability issues there would be with your unsecured credit in the background.

You could seek some advice from the CCCS on your options for the unsecured credit if you are struggling to meet your payments.

Luckyfool.

Freemantel

I've read all of this thread and am still a bit confused about how my situation will be affected. Currently I have a £75k Together Mortgage with NR which is made up of a £58k mortgage and a 17k personal loan. The purchase price of my flat was £60k. As I am in Scotland, the price of my flat has continued to rise and one very similar in my streeet sold for £75k last week. My question is, when I am looking to remortgage (Jan 09), what can I expect? Could I remortgage with another lender to get £75k (or possible more) and use the extra money (75 - 58) to pay the unsecured part of the loan? Or will a lender not allow that and only give me a mortgage to pay off the £58k currently outstanding meaning I will need to get another personal loan from somewhere. Sorry for all the questions but I'm so confused!

Thanks in advance