Northern Rock End of Mortgaged Deal (Merged Threads)

angel6_2

yes thanks andy im fully aware of the risks of mortgages having had 4 houses in my life on my own, however nobody predicted this and being self employed they have taken away all the mortgages that previous to this crash I would have been able to get with not a problem, so would not have found myself in this situation, northern rock have deals for new customers but its !!!! off to the existings one, if they would give me a deal which they clearly have for new customers I wouldnt have a problem. I have budgted for a rise in my mortgage but not the the rates they want to have, so unfortunatley find myself struggling and having now being forced to sell my house.

But thanks for the constructive pieces of help I appreciate that.
Angelx

_Andy_

angel6 wrote: »

yes thanks andy im fully aware of the risks of mortgages having had 4 houses in my life on my own, however nobody predicted this and being self employed they have taken away all the mortgages that previous to this crash I would have been able to get with not a problem, so would not have found myself in this situation, northern rock have deals for new customers but its !!!! off to the existings one, if they would give me a deal which they clearly have for new customers I wouldnt have a problem. I have budgted for a rise in my mortgage but not the the rates they want to have, so unfortunatley find myself struggling and having now being forced to sell my house.

But thanks for the constructive pieces of help I appreciate that.
Angelx

Angel - have you had a chat with any brokers at all?
How long have you been SE? Any proof of income?

MarkyMarkD

Andy's central point is (I believe) that nobody should have taken out a mortgage if they couldn't afford the "revert" rate. It was foolish to assume that it would always be possible to remortgage or switch product every 2 years or whatever.

If you could afford your 3.99% but not the present 7.59% (or whatever NR's SVR is now) then you really shouldn't have bought.

And given what house prices have done, would that really have been such a bad thing?

stephensdan

Hello people. My first post here.

I've been reading through this thread and have been finding it very informative and helpful.

Like a lot of you, I'm after some advice

My fixed rate deal comes to an end with Northern Rock on the 1st of February, 2009

(This is my first mortgage/house)

In total, my outstanding balance (from my July 08's statement) is 103,411.78. This is made up in part with a 19,233 unsecured loan and 84,173 mortgage.

My home was valued in April at 110,000 which was optimistic then, now realistically the value will be lower and it will probably sell for around 90 to 100,000. So at the moment, I'm not going to benefit from selling it (and no one appears to be buying in my area regardless)

My current interest rate is 5.89%

Given the above, I believe that if my rate goes to Northern Rocks current 7.34% in February, I'll be looking at paying around an extra £100 a month. This won't be easy for me but fortunately, me and my partner should be able to manage (it will mean cutting down on going out on a weekend and getting take outs!, so a bit of a lifestyle change)

The Rock have already sent me 'that' letter, saying they aren't going to be able to offer me another deal.

Basically, I'm just trying to work out what's best to do and get a clear idea of my options.

• Is it worth me riding it out in the hope that Northern Rock will start passing on rate cuts so come February my payments won't be to high? Or is this just completely unlikely to happen?
  
• What do you think my chances are of getting a remortgage? I worry that no one will be interested because I have no equity and even if they were, the fees may not be something I could manage.
• Lastly, - 'interest only'. It would be a last resort but if I took that option, how badly would it effect me? would it be reasonable to think I could do that for a few months until the rates look brighter for me and then switch back?
  

Before the Rock was nationalised, I actually had a decision in principle with them for the best part of 140,000 - if I had sold my house I would of gone all out and been in a worse situation now, so looking on the bright side, I'm glad I'm not faceing a monthly increase that's too unmanageable. But I'd be lying if I said I wasn't worried. I'm confident I can manage the mortgage payments but I'm not sure how best to do it....and I like being able to go out for a couple of beers on a weekend

Tomorrow I'm going to try and contact some brokers and possibly even call NE themselves, just for the sake of trying. I'll update if it's of interest.

Thanks for reading and I appreciate any of your views!

...I actually feel a bit better now I've written it all down!

allisonj

stephensdan wrote: »

Hello people. My first post here.

I've been reading through this thread and have been finding it very informative and helpful.

Like a lot of you, I'm after some advice

My fixed rate deal comes to an end with Northern Rock on the 1st of February, 2009

(This is my first mortgage/house)

In total, my outstanding balance (from my July 08's statement) is 103,411.78. This is made up in part with a 19,233 unsecured loan and 84,173 mortgage.

My home was valued in April at 110,000 which was optimistic then, now realistically the value will be lower and it will probably sell for around 90 to 100,000. So at the moment, I'm not going to benefit from selling it (and no one appears to be buying in my area regardless)

My current interest rate is 5.89%

Given the above, I believe that if my rate goes to Northern Rocks current 7.34% in February, I'll be looking at paying around an extra £100 a month. This won't be easy for me but fortunately, me and my partner should be able to manage (it will mean cutting down on going out on a weekend and getting take outs!, so a bit of a lifestyle change)

The Rock have already sent me 'that' letter, saying they aren't going to be able to offer me another deal.

Basically, I'm just trying to work out what's best to do and get a clear idea of my options.

• Is it worth me riding it out in the hope that Northern Rock will start passing on rate cuts so come February my payments won't be to high? Or is this just completely unlikely to happen?
• What do you think my chances are of getting a remortgage? I worry that no one will be interested because I have no equity and even if they were, the fees may not be something I could manage.
• Lastly, - 'interest only'. It would be a last resort but if I took that option, how badly would it effect me? would it be reasonable to think I could do that for a few months until the rates look brighter for me and then switch back?

Before the Rock was nationalised, I actually had a decision in principle with them for the best part of 140,000 - if I had sold my house I would of gone all out and been in a worse situation now, so looking on the bright side, I'm glad I'm not faceing a monthly increase that's too unmanageable. But I'd be lying if I said I wasn't worried. I'm confident I can manage the mortgage payments but I'm not sure how best to do it....and I like being able to go out for a couple of beers on a weekend

Tomorrow I'm going to try and contact some brokers and possibly even call NE themselves, just for the sake of trying. I'll update if it's of interest.

Thanks for reading and I appreciate any of your views!

...I actually feel a bit better now I've written it all down!

I too am in the same position with northern rock and just received a letter to say that our rate would go up to 7.% our current APR is 7% anyway and our outstanding balance is 81,500 and the last house to sell round our area was 86,000 2 months ago. This will happen on 1 February 2009.
Our financial adviser is coming back to us on the 20th November with our options but im really worried with recession looming.

We are capital repayments as well so would interest only be an issue if we changed to them?

aah

We have around 40% LTV and have (at the beginning of October) just finished a 3 year deal with NR.

Its a 67k mortgage and 23k secured loan. Mortgage has 11 years to run, loan 18 years (only the mortgage was on the 3 year deal). Together the payments are £907 on the SVR which we are on now - as the help with costs tie-in doesnt finish until 6 months after the fixed rate deal.

NR write to me several times a month now telling me how much better of I would be moving to C&G, but when I phone to find out about it - they want their 1k help with costs, and CG was another 1k arrangement fee, they want £250 ending the mortgage money. Grab grab grab.

I know this is what I signed up to and until I am free from the help with costs tie in I will stick with it. I just wish NR would save all our money by stopping writing to me - its a waste of staff time, resources and postage.

And I wont be taking the lousy CG deal at that rate - its easy enough to find something MUCH better. I'm going to be paying less with a +0.99 tracker and also bringing the secured loan term down to the same number of years as the mortgage - eventually! (its booked...)

vegankris

I'm in a similar boat, my fixed rate with them ends early 2010, with another 20 years to run. Depending what the financial situation is by then I'll see what i can do... I bought the house alone after splitting with a co-owner, and they were the ONLY bank who were able to even offer me a mortgage at all to keep my house given my lone income, so I may not even be able to remortgage. I'm trying not to think about it too much and get stressed because there's nothing I can do until nearer the time.

ger_ryan22

Hi everyone, great thread by the way. If a little scary at times
Just wondering, our deal with NR runs out Oct 09, we've something like 118000 mortgage + 18000 unsecured loan at the moment on a rate of 7.15%. When our deal ends with NR will we simply be reverted to the SVR of, currently, 7.35% and nothing else with happen? At the moment we pay £880 in total each month which we can handle, are we expected to see a small rise in that when we revert to the SVR or is there something else I should be worried about? We'll definitely look around for another mortgage nearer the time but just in case. Thanks for reading, your advice is greatly appreciated.

stephensdan

^^^Hi Ryan22, I'm sure someone will correct me if I'm wrong but as far as I'm aware, yes - you'll just pay Northern Rocks standard variable rate as long as you are still on their books. How much you pay will depend on what their rate is at the time, which is pretty much a guessing game, it could be higher or lower so you may save each month compared to what you pay now or you may find your payments going up slightly.

Given that you have a year left (almost) and you are manageing at the moment, I wouldn't worry about it for now. Just check out some other deals close to the time by seeking advice from a finance / mortgage advisor (there's plenty of info about that on this site)

with regards to my situation (posted above a few posts) I'm currently trying to get advice from an advisor, I've left a few voicemails on numbers that have been passed to me and my local estate agent is trying to get an appointment set up with one of their people.

stephensdan

Well it's looking at £105 extra a month for me on my mortgage.

Problem is, if I leave my unsecured loan and only transfer the mortgage part, the rate of the loan goes from what would be 7.34% to 12.34% (they add 5% on!) so it will go from it's current £109 to £199 per month.

I guess I could look in to shifting the unsecured part elsewhere and remortgageing the mortgage to see how that works out but at the moment it looks like the best option is to leave it all how it is and pay the extra £105 a month - it's just worrying incase the rates go even higher.

Interesting!