Northern Rock End of Mortgaged Deal (Merged Threads)

mircea

Think I have just worked out (correct me if I am wrong) that wanting to borrow 132500 when our combined earnings are 57500 is 2.3 x our combined salary, is that a high income multiple? I have really no idea (sorry)

ukwoody

Hi all, really must set my partner (Wanda who is an independent mortage advisor) up under her own login! ;lol

Sorry if this has already been mentioned, couldn't find any ref to it.

Wanda been advised by her principle that he has today seen a letter from Northern Rock to customers saying their rates are due to expire shortly and please sign this letter to get your redemption statement so you may take your mortage elsewhere!
This was to a low risk cust with a 114k mortgage on a 160k property.

woody

Dan_Collins_2

I think we will see this until they either flog it or have rebuilt it.

Gorgeous_George

I cannot see other lenders falling over themselves to pick up NR's customers.

Maybe NR will be stuck with their customer-base.

GG

Smi1er

What percentage is the loan value to the realworld property value?

I've had loans previously that broke the loan rules but the mortgage Co were flexible because I owned a certain amount of equity. I also know other couples who remortgaged when inbetween jobs because they had good equity.

UK007BullDog

Oh yes they sure are, there are thousands coming of NR each month and the other lenders are licking their lips for the fodder.......

poppy10_2

Do you have any equity in the home?

poppy10_2

mircea wrote: »

Think I have just worked out (correct me if I am wrong) that wanting to borrow 132500 when our combined earnings are 57500 is 2.3 x our combined salary, is that a high income multiple? I have really no idea (sorry)

No, that's actually a very good income multiple.

HelpWhereIcan

Second time today this has come up http://forums.moneysavingexpert.com/showthread.html?t=754125 and I am still shocked that everyone wants to potificate about what should/will happen to NR without addressing the OP.

I would investigate a 90 % or 95% remortgage for debt consol with a personal loan for up to 25k for the rest to take over the NR unsecured part.

Leaving the unsecured with them could be madness as the rate they would put it to is something 13.5% which you can better in the market. But obviously your affordability will come into it and you will always have that option if you need to. The loan is unsecured so NR do not register a charge for it at all. The only advantage of leaving it with them will be to get a lower payment by having a long term (plus you can overpay whenever you like).

Tesco will do a personal loan for up to 10 years which will keep the payments down. http://www.tescofinance.com/personal...anRepayment.do

Mortgage lenders who will do 95% for debt consol are not too numerous, but you should still have a few like C&G, Chelsea, First Active, Halifax plus a few others.

You will have to do the figures yourself, but by playing with the combination of secured and unsecured and possibly even the term, you should be able to get something affordable.

jamesd

If he continues to refuse to be on the mortgage, what will happen is one of these things:

• You and he pay the higher SVR interest rate.
• Or the house is repossessed for arrears in mid to late 2009.
• Or around September this year you will start to talk to estate agents and put the house up for sale before it's repossessed.
• Or you ask Northern Rock to extent the mortgage term to keep your payments the same, and they might agree.
• Or Northern Rock might ignore their own lending rules. This seems fairly unlikely when they will be criticised very heavily in the press any time they are found to have offered a mortgage at higher than usual income multiples.

Any of those is possible, up to you and he to discuss which option you want to take.

If he's worried about your financial security there's some benefit in you clearly having arranged the original mortgage and being able to prove that you made every mortgage payment yourself. That may provide you with some protection from debt recovery companies or if he becomes bankrupt.