Northern Rock End of Mortgaged Deal (Merged Threads)

katchambers

Just wanted to share with those on this board, particularly with the friendly people, and just a reminder, the rules of this board from Martin are that you are not allowed to be rude, so for those telling people it's all our fault, and we should have budgeted, should have know better, please desist as it is really not helpful and is not in the spirit of MSE.

My husband and I took out a together mortgage 3 years ago and we were on a fixed rate of 5.99% we had a £30k loan on top of our £185k mortgage. Back then we both had full time jobs, but since then I have been made redundant and now work for myself but do not earn as much as I did back then. Because we have a 125% mortgage and because we are on a DMP we can't remortgage so are stuck with northern rock, and our mortgage payment goes up £500 this month!!!! Even more shocking to us is we took out the mortgage in february but because our houses was being built we started the paperwork in october and even though our first mortgage payment wasn't until february we were shocked with a letter in september telling us our fixed rate was ending in october! So firstly NR - thanks for the warning, and thanks so much for screwing us out of 4 months of our 3 year fixed rate - no idea how they managed that one but sure it was all in the small print - thanks! So we are in a pickle money wise and have had to take more work on, meaning I don't have weekends off anymore, guess it's all my fault - I should have predicted the credit crunch. Oh well.

Anyway, I am keeping my fingers crossed that northern rock will lower their rates, because we are already on interest only and can't take any payment holidays because we are on a DMP. So all I can hope for is the rate cut, I really hope it is 6.49% or lower because that would help us out so much.

Good luck to everyone stuck in this situation, lets hope we all get through it in one piece, it really is sickening though isn't it?

Kat x

agbs3

I hope the rate cut is passed on as this month my mortgage went from £840 to £1020 as we had a 2 year fixed deal. Unfortuantly i am unable to get another mortgage as apparently dont have enough equity in my house. I took out £149,000 mortgage with a £10,000 deposit and going by sales around my area at the moment i believe my house to be worth £165-170k. I have been told by my mortage advisor that im best off staying put until the early part of next year and hope that things improve.

Realistically does anybody think there will be a decent cut by Northan Rock?

jayoh

I along with many of you are stuck on NR's SVR as due to house price drops we don't have enough LTV to remortgage... so I'm with you guys, an interest drop would be VERY welcome

Who reckons we should start a petition on here if it doesn't?!!

scooby2do

andyguk wrote: »

...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....

Good call! And you’ll find most of the people saying such things have their vast saving in Icelandic banks – a decision they made all on their lonesome. :T

If Gordon Brown wants to prove he is trying to help then use Northern Rock to lead the way with rate reductions – this bank lent irresponsibly and now the consumer is left to pay the price as Northern Rock just turn their back! Reduce the SVR for others to follow, it is mad that their rate is one of the highest! :rotfl:

scooby2do

agbs3 wrote: »

Realistically does anybody think there will be a decent cut by Northan Rock?

I'd guess at 1% tops in Jan '09.

pookie197

Hi
I was wondering if I could ask your advice, I have had a look through your messages and it looks like I may be in a similar situation to you all, and I don't know what to do!

My boyfriend and I got a mortgage with Northern Rock in feb 2007, we got a 100% for 200k, fixed rate for 2 years. its up for renewal in feb 09 (though NR have told us we can either go on variable rate or go else where). The variable would take our already £1100 per month payments up to £1500 per month.

We have gone to a mortage advisor who said, say put and go onto variable (even though we can;t afford it!) because no other lenders will touch us, as we are 100% and in negative equity thanks to the current climate!!

Even if we manage to sell we will still owe £20k because of the dropped house prices in the area!
Can anyone advise what we can do?
Thank

stephensdan

^
In your situatuon it's all about time. If you can buy yourself enough time to get through this, the situation will start getting better. What you don't want to do is make any rash decisions under pressure of which will put you in to a worse situation. For example, even if you were offered a 'new deal' now, as tempting as it would be to take it - you may just be makeing things worse for yourself (as I'm sure your advisor has explained)

The best thing would be to do everything you can to stick with it and pay the extra then try for a new mortgage in a few months time. It might mean staying in and budgeting harder but you'd be better off for it. It may be made easier for you as the rates drop slightly....again, over time.

If you can't manage doing that then another way of buying time would be to go 'interest only' - Northern Rock should allow you to change to an interest only mortgage. It should be a last resort, you'd not be paying your mortgage off but you will keep your outgoings down hopefully long enough to survive the storm, then when things pick up you can start up again. They will charge you £75 to do this.

Another option would be to see if they can offer you a couple of payment holidays in an attempt to buy yourself some more time.

Keep in touch with Northern Rock, be completely open and honest with them about your situation and also keep in touch with your financial advisor incase you can get shifted on to a better deal in the future. And also, keep checking this place and the news! these aren't normal times and you aren't the only person in this situation, I've been hearing some right horror stories lately but the general concise is that if we can ride it out, we will come out at the other end ok.

The alternative is giving up, which to be fair is always an option as well if you don't have it in you...but I'm not having that. Think Obama - Yes we can!!!

andyguk

scooby2do wrote: »

I'd guess at 1% tops in Jan '09.

now that would be a nice belated Christmas present :j

andyguk

this is a good read for those who haven't seen it yet

http://www.bbc.co.uk/blogs/nickrobinson/2008/11/can_the_governm.html

andyguk

well I've just watched GMTV news and a reporter read out a list of banks who have said they are going to pass on the rate cut to customers. Northern Rock was the first she read out.

can anyone confirm this? great news if this turns out to be true