Northern Rock End of Mortgaged Deal (Merged Threads)

Mary_Hartnell

There is nothing rip off about your gamble.
Your mortgage capital was paid for by my bond, which I bought at a similar rate of interest at that time.
The reality is that any one with savings is being "ripped off" by these artificially low interest rates and everyone is going to pay the price of UK plc's falling currency values (Would you save with the UK's now nationalised banks at these rates of interest, given the falling currency and massive debts?). Even Chinese stuff will start looking expensive before long.

Nonshy

rovers808 wrote: »

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.

Well the rate was confirmed at 5.84% after November's 1.5% BOE base rate cut... NR passed on the full cut the following day.

And it isn't a "rip off" like you claim.... banks don't lend at the BOE base rate!

MarkyMarkD

Rovers

I can't understand which bit you think is an insult. You made a poor decision. Live with it.

It's interesting that you talk about hindsight.

It is only with the benefit of hindsight that you believe that your deal is a rip off. And your fixed rate deal isn't making the lender any more money than a variable rate deal they would have offered at the same time - so it's not a rip off in any sense.

People need to learn the difference between a bad decision, and a rip off.

A bad decision is a bad decision.

A rip off is where something was bad value at the time you bought it, not something which is later proved - with the benefit of hindsight - to have been a bad decision.

There is no cooling off period for remortgaging. There's an awful lot of time in the process between start and finish, so there's no need for a cooling off period after the effective date.

rovers808

Nonshy - the rate drop for Together customers was not confirmed until Dec 1st - the information was not available to customers until Dec 2nd. Other customers of NR may have benefitted from a rate drop straight away but not my product.

MarkyMarkD - if you cant understand why repeatedly telling someone they have made a stupid decision is an insult, when all the facts to hand present a gamble, then perhaps you should choose your words more wisely in future.

"There is no cooling off period for remortgaging. There's an awful lot of time in the process between start and finish, so there's no need for a cooling off period after the effective date."

Thank you - that is all I wanted to know and this could have been answered a lot quicker.

I only came on here for a bit of help and information but it seems anyone who has a mortgage with Northern Rock is looked down on in these forums and greeted with self righteous smug comments which arent very helpful. In this economy we are all in it together and the more people in trouble the longer it will take to get out of the mess. If everyone trying to get out of the mess was offered help rather than getting a wagging finger, that process may be a little quicker.

Get off your high horse!

kingkano

rovers808 wrote: »

Nonshy - the rate drop for Together customers was not confirmed until Dec 1st - the information was not available to customers until Dec 2nd. Other customers of NR may have benefitted from a rate drop straight away but not my product.

I'm not sure why you keep saying this bit of info? It was VERY widely reported from in early November (http://www.100mortgages.org/20081110/northern-rock-update-svr-is-now-584-percent/) that NR were dropping their SVR by the full 1.5% cut. The cut didn't START until dec 1st but the information was definitely confirmed long before then.

(as long as 'your product' was the standard variable ratethen you would have benefitted at the same time as every other SVR mortgage holder at NR)

rovers808

kingkano wrote: »

I'm not sure why you keep saying this bit of info? It was VERY widely reported from in early November (http://www.100mortgages.org/20081110/northern-rock-update-svr-is-now-584-percent/) that NR were dropping their SVR by the full 1.5% cut. The cut didn't START until dec 1st but the information was definitely confirmed long before then.

(as long as 'your product' was the standard variable ratethen you would have benefitted at the same time as every other SVR mortgage holder at NR)

Look, I dont want to labour the point, if you were a NR customer then you'd understand - clearly not all of the customers or mortgage products had this passed on. The link you have sent clearly states that was for tracker mortgages - this is not ALL mortgages. When ringing them up for the last month the first thing you heard was a message on the automated phone system saying for together customers the decision wouldnt be made until Dec 1st. The rate applied to my loan coming out on Dec 1st was at an interest rate of 7.33, they then announced on Dec 2nd for Together customers that they would drop the rate to 5.84 and this rate would be applied from Jan 1st. Dont believe everything you read - it neednt apply to all the customers of a bank, and this one didnt - my bank account is proof they didnt drop the rate straight away.

kieran1979

rovers808 wrote: »

Look, I dont want to labour the point, if you were a NR customer then you'd understand - clearly not all of the customers or mortgage products had this passed on. The link you have sent clearly states that was for tracker mortgages - this is not ALL mortgages. When ringing them up for the last month the first thing you heard was a message on the automated phone system saying for together customers the decision wouldnt be made until Dec 1st. The rate applied to my loan coming out on Dec 1st was at an interest rate of 7.33, they then announced on Dec 2nd for Together customers that they would drop the rate to 5.84 and this rate would be applied from Jan 1st. Dont believe everything you read - it neednt apply to all the customers of a bank, and this one didnt - my bank account is proof they didnt drop the rate straight away.

Rover, I am also a NR Together mortgage customer. I completely understand, and I'm sorry but you are getting things a little confused.

I clearly knew that NR had dropped their SVR by the 1.5 %; on Friday 14th November* (I think it was). When it was widely reported in the media. I also knew that I wouldn't benefit from this until my January payment. Why? Because, the terms of the Together mortgage are that SVR rate changes are passed on 2 months later. Therefore, will be effective for my January payment. I expect I'll get a letter in the next week or so about it.

PS - in actual fact you'll have a rate of 5.83% next month. Together mortgage holders on SVR get a rate of NR SVR - 0.01%.

EDIT:
* - Friday 7th looking at it again. 1 day after the BOE decision.

kingkano

rovers808 wrote: »

Look, I dont want to labour the point, if you were a NR customer then you'd understand - clearly not all of the customers or mortgage products had this passed on. The link you have sent clearly states that was for tracker mortgages - this is not ALL mortgages. When ringing them up for the last month the first thing you heard was a message on the automated phone system saying for together customers the decision wouldnt be made until Dec 1st. The rate applied to my loan coming out on Dec 1st was at an interest rate of 7.33, they then announced on Dec 2nd for Together customers that they would drop the rate to 5.84 and this rate would be applied from Jan 1st. Dont believe everything you read - it neednt apply to all the customers of a bank, and this one didnt - my bank account is proof they didnt drop the rate straight away.

Nor do I. But quite clearly you misunderstood at the time - and still do. The article I linked to is NOT about tracker mortgages, even the headline quite clearly states its about the Standard Variable Rate. The cut came early for tracker customers in December, which the article DOES highlight -

Northern Rock joined a list of other banks and reduced its Standard Variable mortgage rate by the full 1.5 percent from 7.34 percent to 5.84 percent; this change will be effective from the first of December for all customers on existing Tracker Mortgage rate products.

Tracker mortgages and SVR mortgages are quite different beasts. Trackers MUST follow the BOE rates within their specified time period. SVR rates don't have to change at all, it's at the banks discretion. We have just become accustomed to seeing them change with BOE changes. But it won't always be so, as Halifax customers can currently agree....

I don't agree with NRs lack of communication to you in any way though, and don't mean to slight you. However calling things a ripoff is a tad too far....

rovers808

well clearly if thats the case then NR have given you different information than they had given me. As I've said, the first message on their phonelines was an automated message which played past Dec 1st saying a DECISION would not be made until Dec 1st. I spoke to people at the call centre and had it confirmed to me they had not made a decision on the rate for my mortgage. If the bank tells me that I cant ignore it and blindly take the word of internet stories, I have to believe the paperwork they send me and the money they take out of my account.

Joolz2k1

Northern Rock:

http://news.bbc.co.uk/1/hi/business/7772020.stm

Current tracker rate customers will get a full one percentage point cut.
But those on its standard variable rate (SVR) will only see their interest charges reduced by half of one percentage point to 5.34%.