Northern Rock End of Mortgaged Deal (Merged Threads)

padee

NR 2gether rate ends 1/11. I have around 73k outstanding (60k plus 13k loan).

Valuation came out at 80k so I can borrow 72k (90%) with Nationwide so relieved that I'm getting rid of the 2gether loan.

I may have had to keep some of 2gether loan if valuation had been 75k for example and my mthly payments would have gone up at least £100

Phew

pinknico

Our fixed deal with NR is up in 09/09 and as I wont be going back to work until 2010 is it worth changing to inteest only until we are in a better financial situation? We do have some lump sums coming to us over the next 3 years which could be used.

Crokeria

zipman23 wrote: »

SVR is currently 7.49% (I know its been mentioned before)

If you have an unsecured loan aswell (like me), I was told that the interest rate will go up to 15%. If we were in the position where we had to stay with NR, it would cost us an extra £320 a month! Nasty!

I'm unclear about this. I thought when my deal is up next summer I would revert to SVR for both mortgage and the unsecured loan (the Together bit). I thought they added 5% to the SVR only if you leave NR and don't repay the loan?

zipman23

Give them a ring to confirm it. Just repeating what they told me over the phone. Very scary.


Not sure if this is gonna be classed as a stupid question or not but regarding the 'HWC' thing. Is it our fault that NR have gone tits up and are practically forcing people to go elsewhere thus having to pay this money back?

Mary_Hartnell

I think the whole country is a victim of the Northern Wreck crisis.
We are all suffering from the "invisible hand" as the terms of trade are moving against us and we all have to get poorer.
http://en.wikipedia.org/wiki/Invisible_hand

If there has been stupidity involved, then directors of banks who took on debt not backed by security, here in UK and in USA, and a government which dithered for months, were the most stupid.
The government by insisting that N.R. pays back in a year, thus closing down 20% of housing finance, is probably making the situation worse than it needs to be.

MarkyMarkD

Crokeria

You are quite right that the 5% extra is only applied to the unsecured loan, if you redeem the mortgage.

zipman

It's not your "fault" but equally well, you've had the benefit of the HWC and all you're being asked to do is to pay it back. It's not a penalty as such.

Crokeria

Thanks Marky, thank goodness. Nothing like thinking you are going to have to pay 15% for 7.49% to seem like good value! LOL

zipman23

MarkyMarkD wrote: »

Crokeria

You are quite right that the 5% extra is only applied to the unsecured loan, if you redeem the mortgage.

zipman

It's not your "fault" but equally well, you've had the benefit of the HWC and all you're being asked to do is to pay it back. It's not a penalty as such.

So come January 1st when our fixed rate ends, we'll revert to 7.49% for both mortgage and loan unless we find something else? Is that right?

As for the HWC, I wasn't moaning although it probably came across that way. We were knocked back by Nationwide because of something which is on my gf's credit report. Trying to sort that out first before continuing with the mortgage hunt. Happy days eh!

by-jc

Now here is a challenge for MSE.com...

I took out a mortgage with NR over 5 years ago. I borrowed some more over time and now mortgage is £150k. Payments have increased from £700 to just short of £1000 per month. I have spoken with NR to get help but the advisors on the phone say there is nothing they can do and advise getting a deal elsewhere.

Problem is, I have another mortgage with C&G of £135k and that is £900 ish per month.

Then a third mortgage with Mortgage Express of £225k @ £1250 per month

Plus a loan that costs £500 per month.

I kep all mortgage payments up to date until last year when I missed two months with Mortgage Express (Not totally my fault but they take NO part of the blame...!!!!) C&G are up to date.. However, I have struggled to pay my NR mortgage for two months. I paid some in July but nothing in August.

I know that I am bordering on the brink of having the house taken from me and I do NOT know what else I can do.

Becuase the mortgages have increase so much, I missed out with NR. that has had a bearing on getting another mortgage because the missed payments show up whilst carrying out credit checks.

So the problem is: - I can't afford to pay, I can't get a new deal because I've missed payments, i can't stay with NR becasue they are too expensive, I can't sell properties becasue I will lose money and so I am STUCK STUCK STUCK...

Why can't the lenders understand that ever 1 customer they lose, that it increases the loss to the company. If they could just freeze the rates, payments or whatever else, then this would surely slow down repossessions and stop the lenders losing more money..

Why can't they just help.....

I saved my little hiney off to buy these places instead of a pension fund. But now all that hard work will be in vein.

Can someone offer any help or advice.

Many many thanks.....

Ps - Sorry if I'm in the wrong forum. I've looked everywhere but can't seem to find what I'm looking for.

The-Mortgage-Broker

Becles wrote: »

I'm currently on a 5.99% capped rate with Northern Rock, due to expire in Jan 2009.

I know they don't want the mortgage business right now as their rates are incredibly uncompetative. What will happen now that the bank has been nationalised?

I was single and working full time when I took the mortgage out, so the loan and the house deeds are in my sole name. I've since married and had a baby, and I'm only working a few hours a week now so I don't have the income multiples to move elsewhere. Husband doesn't want to be on the mortgage. House is my asset from before we met, so he refuses to go on the deeds/mortgage.

I am worried what will happen when my rate runs out in January? Can anyone put my mind at rest?

Hello, the best advice is to speak with an independant mortgage broker, he will reveiw your situation and advise you on the best course of action. Although you are only working part time you can use all sources of income (child benefit, tax credits etc) when applying for a mortgage. If you need further info please drop me a line.