Northern Rock End of Mortgaged Deal (Merged Threads)

juliesg

BigC+WeeS wrote: »

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!

love to know how u get on good luck

Debs12

neverdespairgirl vbmenu_register("postmenu_14633219", true);

I had to look back for my full post about a petition maybe I have calmed down like the markets as the week goes on.
Bascically the Absurd state of affiars that NR will not offer current customer a deal but will new customers. This is as many on this board is saying absurd.

I have loan to value just now 83%. I am concerned that as prices fall so does my LTV rate. Advice to non Northern Rock would do not worry stay with your current provider (who are less likely to get a valuation - this may be just my opinon). My fixed rate deal runs out next year. 7.5% worries me and I could pay this but very few luxieries in my life but I also realise this may go up to 15% like last crash! Hence my concern. I may then no even have LTV ratio. I cannot use the market to help me. I also think the Government should be trying to get NR into a state where it can be a viable business to be sold - Lloyds TSB were after it before, Virgin. I pay my mortgage ever month, I do consider my house a good investment in the long term , therfore I am good asset to have on Northern Rock books.

However what is clear is that the business plan is to try and get good assets like me to move banks. I may not be able to do this - other market conditions , what I consider a temporay drop in prices ( I do not know how temporary but there is still a short supply of houses so demand and supply tells us that prices should rise).

I am saving as much as I can right now to ceate a cushion to try and get me offer the situion that I fear may arise. However what is absurd depite my good status with the NR is them taking on new business at much better rates than me? How is this is the NR business plan? Try and get good assets to leave, replace them with customer with no track record!!! Brill !!

No. 10 does petitons:
http://petitions.number10.gov.uk/

If I create on on this absurd business practice of this governements run bank. Who would be up for signing it?

luckyfool

Gmanrock wrote: »

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

Please explain how you are financially ****** any more than you would be if you had taken a true 100% mortgage? How has the fact that it is split 90-10 secured unsecured actually disadvantaged you? The unsecured loan is on a repayment term the same as your secured portion up to 25 years. Most other lenders would treat it as a like for like remortgage if you had the equity to remortgage and pay off the full Northern Rock product. I'm not seeing the specific problem you have now that you wouldn't have with a straight 100% deal?

Incidentally any illustration provided to you and mortgage offer would have fully itemised the structure of the deal, though your advisor should have explained it to you more fully.

MarkyMarkD

Debs Number 10 petitions are a complete waste of time. Nothing has ever changed because of one of them.

So, no, I won't sign one.

Gorgeous_George

neverdespairgirl wrote: »

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.

Sometimes, it is difficult for people with solid finances to understand the perils of those on lower salaries.

People were 'collectively encouraged' to borrow 100%+ to buy a home. Often a small 2 bedroom shoe-box.

Idiots on forums like this and HPC told them that renting privately was paying a greedy LL's mortgage and that renting was dead money. Renting privately may not permit you to have a dog, cat or other pet. Maybe you wouldn't be allowed to redecortate your home. Most of these people work damned hard to earn £20K in the good times.

There was no option for them to rent from the council or housing association.

Now that NR has gone belly up, they (NR aka the Government) are actively encouraging people to move their mortgages elsewhere and the 7.49% SVR is part of that encouragement. Of course, as prices fall, most of those with 100%+ mortgage debts cannot move. Nobody wants them. So, they are stuck on an SVR of 7.49%.

£130K at 7.49% over 22 years is £1006.05

£130K at 5.74% (my tracker rate) is £868.14 over the same period.

So, those who can least afford it have to pay £138 per month more than those who, by chance, are better off. That is £32 per week from a salary of £20K.

That's the real world and is why I firmly believe that the Government should 'encourage' the banks (who are being bailed out with our money) to limit remortgage deals to BofE Base Rate + 1% for those people that the banks 'encouraged' to take on these hideous LTVs.

GG

BigC+WeeS

BigC+WeeS wrote: »

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!

Right, here's where we're at at the moment. Spoke to NR just now, and they're offering to switch us to C&G, 2 or 5 year fixed at 6.35% with a fee of £995. Bearing in mind this is before they do any credit checks.... so we may be offered something a lot different, maybe nothing at all. They're sending the quotes out to me by post to have a look at anyway and we'll take it from there. The monthly payment would be £1395 on the 2 yr deal and £1384, on the 5yr. Compared to current total of £1334 combining NR and Picture, and a possible combined total of £1517 if we're stuck on the SVR, that would be very good and help keep us afloat. I just hope they'll see fit to help us out after a credit check though....

Debs12

BigC+WeeS

I am glad you are being offered something. That is good news.

What is you LTV rate is it below? 80%. Ours is not and of course depending on valuation is decreasing all the time?Looking at C&G/NR deal that you can see it seems to be for those on less than 80%...

Debs

However what makes it unfair is we have very little debt. Secured or unsecured.

Debs
THe

BigC+WeeS

Debs12 wrote: »

BigC+WeeS

I am glad you are being offered something. That is good news.

What is you LTV rate is it below? 80%.

Thanks Debs,

At a rough guess our house is worth in the region of £210000, maybe a bit more, so we're looking at nearer 85-90% LTV.... which could go against us as well. I'd say I'm hoping but not hopeful, if that makes sense.

Dan:_4

BigC+WeeS wrote: »

Right, here's where we're at at the moment. Spoke to NR just now, and they're offering to switch us to C&G, 2 or 5 year fixed at 6.35% with a fee of £995. Bearing in mind this is before they do any credit checks.... so we may be offered something a lot different, maybe nothing at all. They're sending the quotes out to me by post to have a look at anyway and we'll take it from there. The monthly payment would be £1395 on the 2 yr deal and £1384, on the 5yr. Compared to current total of £1334 combining NR and Picture, and a possible combined total of £1517 if we're stuck on the SVR, that would be very good and help keep us afloat. I just hope they'll see fit to help us out after a credit check though....

Thats very interesting. C&G administer and manage mortgages on behalf of LloydsTSB, who have entered into an agreement with NR to take on mortgages at the end of the fixed rates.

I hope it all goes well for you. Post back and let us know how you get on.

zipman23

We got our letter from NR the other day telling us that our repayments would be going up by £130/month come January. I posted a while back saying it would be going up about £330 but I'm pleased to say I got that completely wrong. Balls-ed my calculations right up.

As we need a LTV higher than 90%, it is actually cheaper staying on the SVR for now than it is to remortgage. I think. Of course, that obviously depends on their rate staying the same. What factors affect the SVR? Is it likely to increase?

We've got a broker coming to our house tomorrow afternoon so we'll see what he has to say and we'll take it from there.