Northern Rock End of Mortgaged Deal (Merged Threads)

Mary_Hartnell

I pass on this bit of info that arrived in my in basket, make of it what you will:

[FONT=Trebuchet MS,Verdana,Helvetica,sans-serif][FONT=Trebuchet MS,Verdana,Helvetica,sans-serif]Journalist Matt Precey works for BBC Look East, the regional tv news programme on BBC1. He is researching how the Northern Rock crisis is affecting people in [the east of England] for a week of special reports into the so-called credit crunch. To that end he is keen on hearing from any Northern Rock shareholders in the east who have been left particularly badly exposed by the fall in the value of the bank's stock and subsequent suspension of shares. ........ He is also very keen on contacting any Northern Rock mortgage holders who may have encountered difficulties in the past 12 months or have seen their repayments balloon. If that applies to you or anyone you know, again he would be keen to speak to you. If you're happy to share your story with Look East's viewers, then please email him at - [EMAIL="matt.precey@bbc.co.uk"]matt.precey@bbc.co.uk[/EMAIL] and include a phone number in your email.[/FONT][/FONT].

princess_loki

afternoon all

just wondering if i can ask you guys a few questions...

firstly i have been thrown into panic mode as i thought my fixed rate finised in march 09 but have just found out that it ends 1st dec 08...:eek: this is apparently because it is when the deal was offered so fair enough...

so basically mortgage will go up by around £150 a month if i stick with nr and go on svr.

spoke to nr and understand that if i want another fixed rate then i can only get this through lloyds tsb / c&g. even though it is sort of a direct transfer from nr to tsb it is effectively a new mortgage and i am guessing i will be credit scored???

so i wanted to go for the 5 year fixed rate of 5.79% until dec 2013.

BUT i have one major problem... when i took out the mortgage (all in my name) i was on £20k - now due to health problems i am effectively living off my partners earnings.

my oh will not be able to apply for a mortgage as he has ccj's and other major debts (which we are slowly clearing).

so does this mean i am effectively stuck with nr and going on svr so that i do not have to declare income?

as a rough idea the house is worth around £120,000 and outstanding mortgage is £79,550. i currently have a repayment mortgage and no debts other than about £1000 credit card. i have never made late payment on anything and until i had to leave work i had a super super credit score.

any advice would be greatly appreciated

many thanks,
loki

madasarog

My wife and I have just come out of an interest only NR deal at 4.99% and are now on their standard variable rate (SVR) of 7.49%. Gulp! At the end of the period they sent us a letter saying that we were coming to the end of the deal and that we would be going on to their SVR. I checked their website and, as an existing customer, we would not be offered any new deals. So we were stuck with either moving on or staying with the higher payment. Fortunately, we had some inherited savings and have decided to make an overpayment (part of the terms of the mortgage) and bring our repayments down to about what they were before. The upside of this is that at 7.49% our overpayment is worth more than getting the interest (6%) on the savings and just about cancels out the difference in the monthly mortgage repayment. Also as we already had the mortgage we did not have to pay any remortgage/valuation etc costs. However, the indications are that the Bank of England (BoE) might (?) be considering a reduction in bank rate over the coming months given the parlous state of the country and therefore we shall be looking at tracker mortgages where the rate is bank rate plus a percentage. Hope this is of help.

MarkyMarkD

Unless your mortgage is very small, or is over 90% LTV, it's hard to believe that you couldn't save a fair amount by remortgaging away from NR. 7.49% is a very high rate to be paying at the moment when (for example) you can get a 5.69% tracker from Woolwich for just £995 fee.

RuttL

I have just joined this site as it was recommended to me, firstly I have to say it is good to hear that other NR customers are having the same difficulties as myself!

Anyway looking for any advice I can get! :eek:

We (nyself and my partner) have a mortgage with NR which we have held for just over 3 years. It was a fixed rate mortgage but this has since expired and we are now on a SVR. Our mortgage payments have rose from £1000 to just under £1300!!!

Although we can afford to make our monthly payments we are at our limit financly. We have contacted Mortgage Advisers but are unable to get a new mortgage either due to another despoit being needed (which we don't have!) or they now think we don't earn either money (we have been told that we are short by £1000!). Although to a point I can understand this, it is very frustrating as we are clearly paying our mortgage every month which is more than new deals! :mad:

Any advice etc is very welcome!

Thanks in advance!

MarkyMarkD

I don't want to sound like I'm saying "I told you so", but taking out a 25 (or whatever) year mortgage is a 25 (or whatever) year commitment.

Whilst it is a risk taking a long-term fixed rate - losing out if rates go down , it is also a risk to take a short-term fixed rate - losing out if rates go up or otherwise unable to remortgage at the end of the short-term fixed rate.

Those who opted for 2 or 3-year fixed rate products with NR, and who are now finding it difficult - or in some cases impossible - to meet their payments at SVR are exactly the reason why people should consider the whole 25 years and not just the 2 or 3 years that they can afford.

If the NR collapse achieves nothing else, then perhaps it will dissuade new mortgage borrowers from automatically opting for the shortest possible (but maybe cheapest in the very short term) product, in favour of deals which are better value over their entire lifetime?

nomadicwesti

Hi
our mortgage 2 yr fixed deal with NR runs out Dec 2008
though The mortgge didn't actually start until Feb when we bought the house so should it not end at date of money paid as opposed to date of loan arranged?

Also, we borrowed 95% LTV we reckon as the valyue has actually went up in Scotland and our area since we bought and we've done a lot of ork to the house which was in a bad state of repair
thus we reckon we need around a 85% LTV

we were starting to get quite confident the turmoil on the LIMOR was coming to an end and we would get a competitive rate and didn't prebook a deal.

Now with the events of this week we are wondering if that was wise

Do any of you hav any thoughts on this
should we try to book a deal soon or should we hold off until closer to the time in teh hope that rates will fall before we switch onto NR's rediculous 7.5%

Alos, ould it be best working through a broker or do it ourselves we've heard that the best deals are now only available direct to customers. Is this true or would a broker be the best bet to get a good deal

Your thoughts would be very welcome

Thanks,
B

MarkyMarkD

Regarding your first point, NO. Fixed rate mortgages with most lenders run to a stated end date, irrespective of how quickly or slowly you complete your mortgage after the offer was issued. (Nationwide are the main exception to this rule).

Regarding your second point, it's great that you've managed to reduce the LTV by improving the property and by buying in the right area.

If you intend to get a new fix, the LIBOR volatility is a red herring. Martin's suggestion is that you get a rate now, and you can always ditch and switch if there is a big reduction in rates before your existing product runs out.

I'd get an offer under your belt whilst your value is looking good.

mick_1967

Situation; The mortgage is £71k and the unsecured loan is £8.5k. Both have the same rate 6.19% until it ends soon when we go onto the 7.49% SRV. Is it possible to overpay on the loan ONLY as its £176 in interest per month?? Any help appreciated?

I note that if we change lender they will add another 8% to the unsecured loan. I'd imagine it would be possible to add this load to a future mortgage assuming we have the neccesary deposit etc?

*jobags*

Opps - meant to press reply and thanked you instead!

I have a NR Together and you can write to them telling them where you want the overpayment to go - in my case it took them about 8 weeks to activate this request - all the OP's I made in the interim were split between the Repayment, interest only and loan elements.

Yes - you can roll the whole lot up into one mortgage when you remortgage - at least, having read my T and C's that's my understanding

Jo