Northern Rock End of Mortgaged Deal (Merged Threads)

stephensdan

^^^ I apprecaite your point but regardless of being able to manage or not on 7.34% or 6.49% like you sugest, it's still a rubbish deal for the lenders customers.

Nonshy

yeh i totally agree it is a rubbish deal... banks have all the power.

they act in their own self interest and unfortunately they are within their "rights" to do so.

stephensdan

Yeah, this is why I'm hopeing that with such a big cut this time and the pressure from the governement and the fact that other banks have much lower rates and a lot of their own custmers are struggleing so much...this time they will hopefully make the rate more reasonable. I mean 7.34% really is criminal, especially now.

Fingers crossed anyway.

stephensdan

Ok I don't want to start copying and pasteing news stories in to this thread, I know that all who are interested will be up on what's happening anyway. But since the announcement there's been loads posted on news sites and this appears to be really blowing up now, there's quite a fenzy brewing up about rates being passed on.

The Guardian for example are reporting:

Banks and building societies were today put on "red alert" that they must pass on the 1.5% interest rate cut to customers – or face possible parliamentary intervention.

Full story:
http://www.guardian.co.uk/politics/2008/nov/06/economy-interest-rates

The governemnt seem to be putting on the heat for banks to pass these cuts on. Northern Rock, being in public ownership - how can they get away with not passing anything on? It's all getting rather exciteing.

From other news sites, the majority of lenders already appear to have made comments on what they are doing - even if it's as little as "We are reviewing our rates" - but I'm yet to see any statements from Northern Rock.

This doesn't actually affect me to badly, if they stay at 7.34 it's an extra £105 a month come Feb the 1st but It's The Principle, Damn It! and I'm getting really caught up in the whole thing now, The Rock have got to sort this out for its customers. I hope we hear something soon.

ceebeeby

I spoke to NR about half an hour ago - and they said they've yet to decide about passing on the cut (customer services) but will do so in the next day or two ....

scooby2do

stephensdan wrote: »

...........and I'm getting really caught up in the whole thing now, The Rock have got to sort this out for its customers. I hope we hear something soon.

If you speak to ‘anyone’ at Northern Rock they blame trading restrictions imposed by the Government for the fact that they don't pass on the rate cuts and will not offer existing customers new deals when their current one ends, so who should you believe NR or Mr. GB who apparently loses sleep worrying that people might lose their homes!

Nonshy

what difference does it make whether a decision is made today or next week?

won't come into affect until next moneth for variable or tracker customers and will affect people with together products by january.

stephensdan

None...apart from a load of people who are worried about their finances finding out where they stand for the coming months.

allisonj

Well I am shocked about the 1.5% cut but iv got my fingers crossed that northern rock do past it on to customers, I would have thought they would have to either way im still worried about my mortgage running out in feb 09 given I will then be on maternity leave!

andyguk

cheers for the info stephensdan, things may be looking up after all :T

What gets my back up is people coming into this thread and having a go at those who took out large mortgages and who are now struggling with the SVR. I suspect WE ALL SOUGHT FINANCIAL ADVICE before going with these products. I certainly did as I had no clue how mortgages worked before getting this one. EVERYONE I spoke to told me I should buy a house and quit renting, so I went with that in mind to see an financial advisor/broker who in-turn found me the together mortgage.

Now 2 years ago (or even 18 months in my case) did anyone see a credit crunch coming? nope, not me, said the brown owl YES we knew the SVR was at the end of the tunnel, HOWEVER, with a credit crunch nowhere to be seen in our calculations, we all thought that we'd be able to switch to another product from our 'friendly' lender NR, or even switch over to another deal from a different lender when our fixed terms ended.

It's like we're thought of as if we all went into these deals with our eyes closed, which is actually quite offensive to those of us who sought a lot of financial advice and didn't see a credit crunch coming which would pratically put a hold on any remortgage deals..... oh that would be all of us then.

Well here's hoping as much of the rate cut is passed on so we can all use the extra money to overpay our mortgages and bring them down as much as possible :T