Northern Rock End of Mortgaged Deal (Merged Threads)

Sarah-Jaynef

I have just had a call from my bank saying I should have/ will be getting a letter from Northern Rock saying that we should be looking to move our mortgage with them to someone else? has anyone received one of these letters? Is this what we should be doing.
thanks
SJ

homer_j_3

I think its more specific to customers whose deals are ending shortly.

boredofbeingathome

That was my take on it as well. People who have a fixed rate deal ending soon should move. There is also the problem of penalties for moving if on a fixed rate- so advice would be to organise a deal for when this finishes.

Datasafe_2

Funny thing yesterday. I was walking past Barclays bank and there was a sign outside saying

" Do you have a Northern Rock mortgage?? We could help you!!"

Looks like the other banks are actively looking to pick up business from NR.

Dan_Collins_2

We have had a client call, he got the letter and his fixed rate ends in June.

I think NR will have to reduce the mortgage book for a while, they are taking on investments and offering good rates.

If you have 100% you may be stuffed, I think the FSA need to step in and make sure that 100% lenders are not leaving clients out to dry! TCF etc etc

Kez100

100% won't be left high and dry they will be put on SVR.

SVR will be a reflection of todays market - higher risk (that's exactly what mortgage deals do - reflect the current market)

dunstonh

I would like to know what your bank is doing phoning you to tell you that about another lender. It has nothing to do with your bank and if they are using it as an excuse for marketing, ie. NR are telling you to leave so come see us, then that is a breach of FSA rules.

mircea

HelpWhereIcan wrote: »

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.

Sorry to ask yet another question!!! what do you mean by debt consol? The only debt we will really be left with is the NR unsecured part. We can afford up to £1300 a month for our mortgage and the unsecured loan - should this be possible?

Does anyone know what value a loft conversion, extension and downstairs cloak can add to a house as we have planning permission to do all of this, and hope that we can ride out the house price/mortgage storm and damage limit the price drop through adding value to the house this way.

mircea

Hi
Just wanted to to reply to this, I know I have a really long thread going on elsewhere, but our NR 2yr deal ends in June, we have received a letter telling us what our new SVR payments will be, but not asking us to look elsewhere. So I am assuming that if they think you can pay the SVR they will keep you?

mayjay

our NR Together 125% fix ends in July - any advice what will happen now this mortage is no longer offered?