Northern Rock End of Mortgaged Deal (Merged Threads)

angel6_2

Hiya everyone,

Well spoke to NR and im changing to interest only for the time being, yes its costing me £75.00 but i means my monthly mortgage payment only goes up by £227 a month instead of £350 a month.

I have spoken to 2 mortgage brokers and because of the lack of mortgages out there I cant re-mortgage as I need 81% LTV and can only self cert up to 75% so unless I can spring 11K from somewhere LOL then I stick where I am and pray they start reducing the interest rate and pass it onto the customers.

Not sure how the heck we are going to manage but will just have to tighten our belts for the next few months, the kids have been told there wont be any big presents this year but I will make damn sure they have a good christmas all the same.

I have also put the house on the market but according to the estate agent he doesnt think it will sell at the price I need (which incidently is less than I paid for it already), but im damned if I am going to give it away, so fingers crossed things start to change for the better for everyone.

Angelx

stephensdan

Angel, I genuinely am sorry to hear how rubbish your situation is at this time.

If it's any consolation, it's got to work out for you over time because when things are getting that bad there's only one other way it can go and the bottom line is that there's a solution to every problem in some form. I think the rates will change as I've mentioned earlier which should make it less stressful for you and then as long as you are keeping in touch with your advisers and are abreast of what's going on you will hopefully be able get a better mortgage deal in time.

I've noticed the ignorant comment posted by another board member with regards to your situation. It amazes me that some people are quick to make assumptions that people like yourself MUST have borrowed recklessly beyond their means without thinking about it and deserve what they get.

I'm sure none of us 'planned' for the credit crunch and the resulting lack of new mortgage deals but that doesn't mean we are to blame for it. You wouldn't be getting your finances in order like you are now if you were irresponsible with money and a lot of us have 'good' debt that's been used wisely to get by - if we didn't, me and my friends wouldn't of been able to afford our education, it's a fact of life that sometimes circumstances change after big decisions, you cannot help that. But if we didn't take the risk then where would we be? I'd be in rented accommodation with no hope in hell of getting on the property ladder now and I would have a load of debt still from uni. You don't appear in the slightest to have purposefully put yourself in to a bad situation (along with millions of others around the world) and you don't deserve to have someone suggest that you are to blame (especially when they know very little about your situation anyway, it was your first post here!)

Anyway, forgive me for my rant. You're not alone, you'll pull through and by the sounds of your character, your kids are in for a great Christmas with such a cool and determined parent! Don't let them get you down!

All the best!

IcklePickle_2

Stephensdan, thanks again for all those links - I will check them out tomorrow.

I agree with your point about some posters on this thread. Some people are incredibly unsympathetic. On the DFW board there is an official warning telling them not to be judgemental about peoples' financial problems.. perhaps something similar should be on this thread?

People are worried enough without being put through reading sarcastic and ill-informed opinion from sanctimonius people. :mad:

Yawn.. I'm probably cranky from tiredness, waiting up to see the US election results.. wishing they would hurry up!! lol
x

stephensdan

Fingers crossed for today then.

stephensdan

UK interest rates slashed to 3%

The Bank of England has cut interest rates in the UK by one-and-a-half percentage points to 3%, its lowest since 1955, in a shock move

This is a huge cut, more than expected. Surely Northern Rock have got to drop their standard variable rate now.

Lloyds TSB and Cheltenham & Gloucester, says its standard variable rate, currently 6.5%, will never be more than 2% above Bank of England base rate. This means their customers will be very happy with a rate of just 5%!!!

Lets hope the government will start to lead by example now and get Northern Rock's rate sorted out. Over seven percent now is definately criminal.

This decision today could be a really good thing for us.

poppy10_2

Yep, everyone can relax now. Even if you have to go onto the SVR it will still be cheaper than a fix taken out this time last week.

justmarried06

Hi peeps - just a quick question (and hopefully this is the right place to put it!) - I've noticed that a few people have taken payment breaks from their NR mortgages - could anyone tell me

1. How easiy it is to do
and
2. What's the longest period you can take a break for?

DH and I are starting to think about trying for a baby but would need to take a break from the mortgage to do so since SMP is so low

Thanks

JM xx

andyguk

hmmm I can't see them passing on very much. I hit the SVR on Jan 1st so been watching these rate cuts like a hawk. But when the government keep 'begging' the banks to pass on these rate cuts, it's the government bailed out Northern Rock who fail to pass on hardly anything.

What did we see from the last cut? 0.15% out of the 0.5% ?

so what could we realisitically expect from this 1.5% cut? 0.2% ? :rolleyes:

I know they don't HAVE to pass on anything, and I'm sure most won't. After all, when was the last time the banks helped their customers out?

Nonshy

Justmarried - taking a payment holiday/mortgage break is very easy.... if you have made 27 consecutive payments you can take 3 months off. The payments have to have been made in full and in the correct months. It's one payment holiday for 9 payments... so if made 9 consecutive can take one, if made 18 can take 2 payment holidays, 27 consecutive can take 3.

There are special circumstances: having a child... where if made 9 consecuitve payments can take 6 months or if you are having a career break can take 6 months.

Nonshy

The reason rate cuts aren't always passed directly on to customers is because banks don't lend from the BOE. If the LIBOR doesn't reduce they are unlikely to reduce their rates by a significant amount.

I would expect NR to reduce the rate from 7.34% to something like 6.49% and if people are still struggling at that rate then I would say you borrowed beyond your means... I am not having a go and heaping pressure on people but the Government, Banks and the public are all to blame for the state of the economy. People were buying houses like there was no tomorrow... prices rocketing and every home owners cashing in. Very few complained back then.