Northern Rock End of Mortgaged Deal (Merged Threads)

andyguk

well that's another 1% off the BOE rate. Anyone know if NR will pass this on? I know Halifax have said they will pass the full cut.

Also didn't quite get that £3 rise for zipman. Surely any cut in rates would have meant a saving. I'm currently on Together 6.15% fixed until Jan 1st 2009, when it should come down to 5.84%. Now wondering what kind of cut in payments I'm going to see with zipman's rise in mind.

alan_blue

lets hope so hey!!

andy what are you doing with your mort when you finish the term?

andyguk

alan_blue wrote: »

lets hope so hey!!

andy what are you doing with your mort when you finish the term?

well I was actually looking for a new deal about 2 months before the 1.5% cut was announced. I was being quoted 6.69% fixed for 5 years from Alliance and Leicester, but this meant I had to leave the unsecured bit with NR. (got exactly 100% mortgage from NR).

Now I'm so glad I stayed put. Every penny saved will be ploughed back into the house in overpayments, so I intend to keep the repayments exactly as they are at the 6.15% rate. Hopefully that LTV will come down sooner rather then later :T

andyguk

I think we'll be able to track the latest BOE rate cut here

http://news.bbc.co.uk/1/hi/business/7764690.stm#TABLE

alan_blue

andy, sorry to pry and tell me to get lost if you want lol did you take the full 25k loan? i did and i take it you know if you move the mort away the loan jumps up 8% above SVR?

Nonshy

andyguk wrote: »

well that's another 1% off the BOE rate. Anyone know if NR will pass this on? I know Halifax have said they will pass the full cut.

Also didn't quite get that £3 rise for zipman. Surely any cut in rates would have meant a saving. I'm currently on Together 6.15% fixed until Jan 1st 2009, when it should come down to 5.84%. Now wondering what kind of cut in payments I'm going to see with zipman's rise in mind.

Zipman's didn't come down as expected because he added product fee... payments are calculated on the loan given and not the loan plus fees (although you can request that).

So each month zipman will have been paying interest on the fees added and his balance wouldn't have reduced as quickly as expected... slightly higher balance than expected, therefore, payments will/may increase slightly after 0.05% rate reduction

You have also got to be aware of this when you take payment holidays... interest added to balance means when payments recalculated they will/may increase.

zemoney

andyguk wrote: »

well that's another 1% off the BOE rate. Anyone know if NR will pass this on? I know Halifax have said they will pass the full cut.

Also didn't quite get that £3 rise for zipman. Surely any cut in rates would have meant a saving. I'm currently on Together 6.15% fixed until Jan 1st 2009, when it should come down to 5.84%. Now wondering what kind of cut in payments I'm going to see with zipman's rise in mind.

I spoke to NR yesterday as since October I have only received a 0.5% cut on my BTL. They explained that they apply changes (drops or rises) after 2 months and that the 1.5% drop would be forthcoming in Jan 09. They also said that if there was a BOE cut today "as has been widely reported there will be" (their words) then this would be passed on in Feb 09. The agent was pretty unambiguous and I would expect them to follow through.

Nonshy

zemoney wrote: »

I spoke to NR yesterday as since October I have only received a 0.5% cut on my BTL. They explained that they apply changes (drops or rises) after 2 months and that the 1.5% drop would be forthcoming in Jan 09. They also said that if there was a BOE cut today "as has been widely reported there will be" (their words) then this would be passed on in Feb 09. The agent was pretty unambiguous and I would expect them to follow through.

I wouldn't get your hopes up... not the agents decision... decision of the board of directors who will meet soon and make a decision over the next week

MarkyMarkD

Not if it's a tracker, which I think it is from zemoney's comments. Some NR products take two months to track (Together certainly does) whilst most lenders take just one month.

deefadog

Hi all, i have had my Northern Rock fixed rate (5.19%) repayment mortgage for just over 2 years, we have 99k outstanding (house is roughly worth £210k), now i know there's a early redemption charge for moving the mortgage now, but can a deal be done too lower the fixed rate with a threat of moving in this current climate? or will they happily take the early redemption fee and say bye bye? Surely even if they lost .1% to me the amount would be mean more to them that the early redemption payoff?

Any one ever had luck with this?