Northern Rock End of Mortgaged Deal (Merged Threads)

MarkyMarkD

(1) I'm surprised that they would keep the balance. The state of your other endowments is none of their business. How do they even know?

(2) It will pay off the capital of your mortgage and will save you interest.

To be honest, paying off the mortgage with the endowment is the right thing to do with it, especially if you are paying a relatively high rate.

Nonshy

mightymum55 wrote: »

We have some years left to run on our mortgage, which is a part interest only and part repayment. We have 3 endowments which have various finish dates over the next 5 years. The first pays out in the next few weeks and looks as tho it will make some profit unfortunately it is assigned to NR. They have told us that the payout will got to NR and they intend to keep the profit to set against expected shortfall of the later two endowments.
1)Can they actaully decide to keep our profit?
2)what will they do with it for 5 years - will it pay off some of our mortgage or just sit there earning money for them?

If endownment assigned to mortgage will be paid off mortgage... any excess would be refunded to yourself... i.e if the mortgage redeems because of endownment

The additional funds will be better for you as you will be paying less interest

westie666

Can someone advise what the svr is now.
I have a together plan (taken out May 2006) and runs out in May 2009

I also have another problem.
We bought our house for £80k, 3 years ago.
Our mortgage is about £78k and our house worth ~£81k

I think we might struggle to get a re-mortgage.
What do people think?

Graham

KE7285

Hey Westie!

We are in exactly the same position as you. We bought our house for £80,000 in June 06 on their 'together' product. Our rate of 5.89% ends on 1st May 09 and i have been panicking about the whole Loan to Value thing. We havent had our house valued recently but i would think we were probably about £82k or £83k. We have fitted a new kitchen and bathroom which im hoping will add a wee bit of value but wont hold my breath TBH.

We received a letter from NR yesterday saying that at the end of our deal, we will be charged a rate LOWER than the SVR, which is 5.09% from1st March 09. I work for an IFA and she has basically told me that Im just as well to sit tight with NR for the mo as our somewhat lack of a deposit wont stand us in good stead to re-mortgage. Hopefully the SVR will stay at a level we can deal with - even if it just buys us a few more months of saving a deposit.

westie666

KE7285 wrote: »

Hey Westie!

We are in exactly the same position as you. We bought our house for £80,000 in June 06 on their 'together' product. Our rate of 5.89% ends on 1st May 09 and i have been panicking about the whole Loan to Value thing. We havent had our house valued recently but i would think we were probably about £82k or £83k. We have fitted a new kitchen and bathroom which im hoping will add a wee bit of value but wont hold my breath TBH.

We received a letter from NR yesterday saying that at the end of our deal, we will be charged a rate LOWER than the SVR, which is 5.09% from1st March 09. I work for an IFA and she has basically told me that Im just as well to sit tight with NR for the mo as our somewhat lack of a deposit wont stand us in good stead to re-mortgage. Hopefully the SVR will stay at a level we can deal with - even if it just buys us a few more months of saving a deposit.

Wheeww!!!! I'm glad that I'm not the only one in this situation. That was my thought also (sit and hold on), but just thought I would ask if anyone had any other info (TBH I think SAHO will be best)

Graham

KE7285

Yeah I've been worrying about it for ages. You would think working for an IFA would put your mind at ease but everythings so messed up at the mo, i dont think anyone knows what will happen next. What rate are you fixed on at the mo? The way im loking at it is that if the SVR is 5.09% from March 09 and think we will get charged slightly lower (0.001%!!!!), then ill be better off in the short term. The only worry is that its not fixed and will eventually head back up the way!:eek:

Are you saving for a deposit?

b0rker

I would be warey of sitting on the SVR and saving a deposit for your next fixed deal. House prices are dropping about 1% a month so every penny you save may be being cancelled out by drops in value. On the other hand you don't really have much other option unless you can secure finance from another source? Relatives of similar? I will be in a smiliar.worse position than both of you in September so please don't assume I am enjoying telling you this...

KE7285

No b0rker - any advice is most welcome!

Im not sure if people tell me this to make me feel better but in Dumfries and Galloway where I live, apparently house prices havent fallen all that much but im a bit sceptical about that. Securing a deposit from another source is also tricky....parents arent really in a position to help - we could sell the car but then we would still have the car loan to pay....suppose its a matter of prioritising.

Think sitting on SVR is the only way for us at the moment. Do you think the SVR is likely to start climbing any time soon?

downhiller

nervousmother wrote: »

Just found this board, thought id let you know what has happened to be due to northern rock
1) Mortgage deal ended. they refused to re-do. mortgage nearly doubled to £1600 a month.
2)house was valued at 400k we put up for sale at 360k but no interest
3)struggling to live we kept reducing price to 300k (mortgage was 290k at that point)

That would have given you a LTV of 72.5%

Why weren't you able to get a deal elsewhere

katchambers

Another 0.5% interest rate cut today, I wonder if NR will pass any of it on? They did with the last one, which is great. Fingers crossed as it will really help us out in the short term.

Kat x