Northern Rock End of Mortgaged Deal (Merged Threads)

MarkyMarkD

Yes, if you stay with NR then you could switch to interest only if you were desperate to cut your monthly payments.

Based on £141k outstanding and £175k of value, you are on around 81% LTV, so you can afford for prices to fall by around 10% before you go over 90% LTV. At that stage, remortgaging will get particularly difficult.

Unfortunately, the chances of a 10% fall by September 2009 are particularly great.

I would strongly suggest applying for a remortgage in March 2009, getting an offer which is valid for 6 months, and then remortage in September 2009 when your existing product expires. You may find the valuation in March 2009 is sufficiently high to get you the mortgage you need. Bear in mind, though, that if you opt for a fixed rate product with almost all lenders, you'll lose 6 months of the term if you do this. (Nationwide are the main exception to the rule). It may be worth opting for a tracker/discount instead because you will then normally get the full tracker/discounted term.

Mary_Hartnell

MarkyMarkD wrote: »

Kate/Fullspizz I really don't understand why NR are writing new business at competitive rates, but refusing to allow any existing borrowers to switch. If their aim is to make the most money possible out of those who cannot switch - because of high LTVs or poor credit rating - then that's one thing, but letting high quality customers walk rather than offering anything even half decent is ridiculous.

Surely NR is facing very tough terms on its massive loan from us tax payers, so every mortgagor who "walks" is big chunk of capital that NR can use to pay off its taxpayers loan?

When NR has been whittled down to those who cannot leave and the government is seen to be repossessing the homes of these people, I'm not sure what will happen.

Debs12

They will be repossessed simple as that alongside the B&B ones too...
I dont want to look on the downside but as a NR customer whose deal is ending next year and as prices fall....my LTV ratio will go up and up...

I am juat hoping that by next summer something will have happened and the banks start lending to each other including us...

BigC+WeeS

On the back of all the current "NR won't help current customers" - we just had a curious letter from them this morning.... our deal finishes at the end of the year as well, and they've actually suggested I call them to see if they can offer me something. No idea if they'll actually do so given our current circumstances though - our current mortgage payment is £1059, going up to £1242 on the SVR, there will be around £156,000 outstanding by the New Year and another 20 years to go.

I'd be happy if we could settle somewhere in the middle. But.... and it 's a big but.... we're on a DMP via Payplan, owing NR roughly £33000 (on a £25K unsecured personal loan), £7800 to Barclaycard, £9000 to First Direct (personal loan), and another £1500 to FD on our old overdraft. We also have a secured loan with Picture (which we know is bad!!!) of £25000, which we've been paying 3 years this month, and still owe £31000.

We're coping at the moment - our DMP is £113 a month (take around 40 years to clear :rolleyes: ) but with the mortgage increase my wife will have to take on a second job, with crap hours to cope with it.

Payplan say they can't fix us up with a new mortgage through their own setup. So, I'm going to call NR in the morning when I get home from work to see what they have to say.... wish me luck, and I'll post back here when I have some answers!

Debs12

Good Luck!!!

BigC+WeeS

Debs12 wrote: »

Good Luck!!!

Thanks Debs, I have a funny feeling I might need a lot of that!

neverdespairgirl

knighty76 wrote: »

When I said £12k profit, I was referring to that portion of my repayments which has been interest, since only around 2 or 3k has come off my outstanding loan amount. Isn't this profit for NR?

No. That would only be profit for them if the money was free for them to lend out. In reality, they borrow it either from savers (who they pay interest to) or from other lenders (ditto).

neverdespairgirl

Doublespresso wrote: »

They are practically encouraging people to default by forcing them to pay the SVR at 7.49%

They aren't encouraging people to default, the SVR isn't that high.

People aren't forced onto the SVR either, they can, like anyone else, seek a remortgage somewhere else.

neverdespairgirl

Debs12 wrote: »

How do we start the pressure group perhaps us and the B&B people can get together..maybe we start with a petition?

Can we complain to the FSA?

A petition for what?

Gmanrock

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?

Your like me, exactly....mine runs out Dec 1st.
Trouble is, I was conned by the mortgage advisor. It turns out that I asked for a 100% mortgage in Jan 06 and in fact got a 90% mortgage and a whackin' great big loan for the 10%........I'm now financially ******.

G-manrock