Northern Rock End of Mortgaged Deal (Merged Threads)

kieran1979

deefadog wrote: »

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?

They're trying to move as many people off their books as possible at the moment. They're not offering anything to existing customers coming off fixed deals, so I doubt very much if they will consider lowering your rate mid-term in order to keep you.

So in the nicest way, I'd say they'd probably be happy to take your redemption fee and wave you on your way!

Good luck though - no harm in asking them, always worth a try isn't it?

deefadog

Thanks Kieran!

Just checked other deals around, and have read some more on here, so i guess i'll wait a month to see how all the deals react to the latest cut!

They're trying to move as many people off their books as possible at the moment

Why are they doing this please?

kieran1979

deefadog wrote: »

Thanks Kieran!

Just checked other deals around, and have read some more on here, so i guess i'll wait a month to see how all the deals react to the latest cut!



Why are they doing this please?

I'm no expert and I'm sure somebody out there can give a more comprehensive answer than me. But I know that it is in part due to the fact because it under state ownership, there are European laws that dictate how much of a percentage of the entire mortgage market they are allowed to have. So they've been actively trying to reduce their book for this reason. Something like that anyway...

Nonshy

kieran1979 wrote: »

I'm no expert and I'm sure somebody out there can give a more comprehensive answer than me. But I know that it is in part due to the fact because it under state ownership, there are European laws that dictate how much of a percentage of the entire mortgage market they are allowed to have. So they've been actively trying to reduce their book for this reason. Something like that anyway...

Quicker people redeem their mortgages the quicker the BOE loan is repaid, smaller mortgage book, more manageable and can start operating again and trying to make a profit from 2010.

In reply to earlier question, no ERC will be waived and no reduction in mortgage rate will be offered... you would be wasting your time making a phone call to request this.

deefadog

Ok, thanks,

Stuck in between northern rock and a hard place then (sorry, had to be said)

Nonshy

deefadog wrote: »

Ok, thanks,

Stuck in between northern rock and a hard place then (sorry, had to be said)

:rotfl:

I think you have a relatively good deal and would be quite pleased if I were you... many took out fixed deals 7%/8%

Those with trackers will be delighted!! My parents mortgage is a tracker @ 0.29% above BOE base rate and no collar... except they are trying to sell... ups and downs!

rovers808

very much on this theme, we had a NR Together deal at 5.69% which expired a few days ago. Over the summer we secured a fixed rate from Nationwide for 6.4% which although higher was a lot better than swapping to the NR SVR which at the time was 7.3%. Now the BoE rate has dropped twice, the NR has dropped too. NR have only just confirmed the first BoE rate would be passed on to Together customers from next month, but they delayed this decision for too long and we went ahead with the swap to Nationwide. Now I feel like we're being ripped off as the NR SVR will shortly be 4.5% and we are going to be stuck on 6.5% for 2 years, costing us an extra £200 a month! So, is there anything we can do to get out of it as its only been a few days, but where would the mortgage go?

The only positive about being on the deal we are, is we just scraped the 90% LTV on it, and now with the value dropping further and the minimum deposits higher, its unlikely that 85% of the value would be enough to cover our mortgage.

Nonshy

rovers808 wrote: »

very much on this theme, we had a NR Together deal at 5.69% which expired a few days ago. Over the summer we secured a fixed rate from Nationwide for 6.4% which although higher was a lot better than swapping to the NR SVR which at the time was 7.3%. Now the BoE rate has dropped twice, the NR has dropped too. NR have only just confirmed the first BoE rate would be passed on to Together customers from next month, but they delayed this decision for too long and we went ahead with the swap to Nationwide. Now I feel like we're being ripped off as the NR SVR will shortly be 4.5% and we are going to be stuck on 6.5% for 2 years, costing us an extra £200 a month! So, is there anything we can do to get out of it as its only been a few days, but where would the mortgage go?

The only positive about being on the deal we are, is we just scraped the 90% LTV on it, and now with the value dropping further and the minimum deposits higher, its unlikely that 85% of the value would be enough to cover our mortgage.

Not really if you have signed and completed on the mortgage.

NR's SVR won't be 4.5%... even if they offer full 1% cut still 4.84% and I doubt many banks will offer the full cut this time.

MarkyMarkD

rovers808 wrote: »

Now I feel like we're being ripped off as the NR SVR will shortly be 4.5% and we are going to be stuck on 6.5% for 2 years, costing us an extra £200 a month! So, is there anything we can do to get out of it as its only been a few days, but where would the mortgage go?

You aren't being "ripped off" under any circumstances.

You might have made a stupid decision, because you didn't understand that everyone expected rates to fall and that's why your new fixed rate was cheaper than your old variable rate (at the time). But (presumably) you chose the best value fixed rate you could get, which therefore wasn't a "rip off".

rovers808

MarkymarkD - no need for the insult was there. Anyone paying 6.5 when the base rate is 2 is being ripped off, however they arrived at that place. It looks a poor decision now, but right up to Dec 1st when I had to swap, the rate for NR together was still over 7% so they hadnt even confirmed over a month after the original drop they would pass on anything. You cant say any decision was stupid when you dont have the benefit of hindsight. If you know the outcome of everything so clearly perhaps you can let us all know next weeks lottery numbers? Or what the next BoE decision will be and what each banks subsequent course of action with dates will be?

This was purely a question about when you start a new mortgage is there any 'cooling off' period where you can get out of it, or is there any room for negotiation.