Northern Rock End of Mortgaged Deal (Merged Threads)

Nuttinikki_2

Becles wrote: »

I'm currently on a 5.99% capped rate with Northern Rock, due to expire in Jan 2009.

I know they don't want the mortgage business right now as their rates are incredibly uncompetative. What will happen now that the bank has been nationalised?

I was single and working full time when I took the mortgage out, so the loan and the house deeds are in my sole name. I've since married and had a baby, and I'm only working a few hours a week now so I don't have the income multiples to move elsewhere. Husband doesn't want to be on the mortgage. House is my asset from before we met, so he refuses to go on the deeds/mortgage.

I am worried what will happen when my rate runs out in January? Can anyone put my mind at rest?

Hi Beccles,

My deal with Northern Rock is due to run out in April. However, with the bank of England Base rate as low as it is. I think the Northern tock base rate is actually lower than the rate you are on at the moment. You don't have to change when it runs out, but they are not offering new deals.

We are staying with NR when the deal ends as it is only slightly higher than it was originally as I was on a really low deal. I am then saving a deposit to get a better deal when I move as I'll have a lower load to value then.

Hope this helps

whitevanwoman

Nuttinikki wrote: »

Hi Beccles,

My deal with Northern Rock is due to run out in April. However, with the bank of England Base rate as low as it is. I think the Northern tock base rate is actually lower than the rate you are on at the moment. You don't have to change when it runs out, but they are not offering new deals.

We are staying with NR when the deal ends as it is only slightly higher than it was originally as I was on a really low deal. I am then saving a deposit to get a better deal when I move as I'll have a lower load to value then.

Hope this helps

ditto - in same situation - currently on fixed rate of 5.79, and according to an earlier post, NR tracker rate is dropping to 3.74 this month. Hooray! I think that means that from April onwards I will be paying less in mortgage interest each month. As my mortgage is interest only (yes, I'm one of the subprime borrowers) I'm hoping to be able to put the difference into an ISA towards the capital (I did have several thousand £ in an ISA for my mortgage capital but had to use it to pay mortgage interest payments after being unable to work long term due to illness). I've been worried about what I would do after fixed rate ends as no other lender would touch me with a barge pole but hopefully the interest rate will stay low for a while, allowing me time to get back into full time work and increase my income.

Nonshy

whitevanwoman wrote: »

ditto - in same situation - currently on fixed rate of 5.79, and according to an earlier post, NR tracker rate is dropping to 3.74 this month. Hooray! I think that means that from April onwards I will be paying less in mortgage interest each month. As my mortgage is interest only (yes, I'm one of the subprime borrowers) I'm hoping to be able to put the difference into an ISA towards the capital (I did have several thousand £ in an ISA for my mortgage capital but had to use it to pay mortgage interest payments after being unable to work long term due to illness). I've been worried about what I would do after fixed rate ends as no other lender would touch me with a barge pole but hopefully the interest rate will stay low for a while, allowing me time to get back into full time work and increase my income.

Sorry if I have misunderstood your post but why would a NR tracker effect you if you are on a fixed rate?

whitevanwoman

Nonshy wrote: »

Sorry if I have misunderstood your post but why would a NR tracker effect you if you are on a fixed rate?

Because, as per the previous poster, my fixed rate runs out in April and I will be reverting to the standard variable / tracker NR rate, which at the moment is a much lower rate to my current fixed rate, therefore payments should go down.

feisty1

whitevan woman is confusing tracker for svr, hope she's not out spending the money she thinks she's saving!

whitevanwoman

Ok, I will check the small print, but whether it is a tracker or a sv, it is still likely to be a lower rate of interest than the 5.79% that my fixed rate is at present. And as I've said several times, my fixed rate deal doesn't expire until April so I'm not going to be "out spending the money I think I'm saving" until then, and as I have said in previous posts, any money I do save would go into an ISA.

endemoniada_2

I'm sorry, SVR after your fixed rate will be 5.34%[ still lower than your fixed rate but not quite as low as the tracker.

I'm overpaying too with the saving's I have made going from £7 or so- apparently will reduce the life of my mortgage significantly

whitevanwoman

Like I said, I need to check the small print but I do have a vague recollection that at the end of my fixed rate I will be reverting to a tracker (I might be wrong), rather than a SV, for a further 3 years. Whatever the rate, so long as its lower than the fixed rate, I'll be happy. If it's higher then I've got problems.
Am now going to bow out of this thread.
Good luck Nuttinikki x

endemoniada_2

That would be brill if you were going on a tracker- you would save loads- good luck!!

Nonshy

whitevanwoman wrote: »

Ok, I will check the small print, but whether it is a tracker or a sv, it is still likely to be a lower rate of interest than the 5.79% that my fixed rate is at present. And as I've said several times, my fixed rate deal doesn't expire until April so I'm not going to be "out spending the money I think I'm saving" until then, and as I have said in previous posts, any money I do save would go into an ISA.

It will be the SVR which is 5.34% or if together product 5.33% (unless you get loyalty discount... where you would be SVR-0.25%)