Northern Rock End of Mortgaged Deal (Merged Threads)

catwoman150

Could you not pay half off the capital of your mortgage and half off the unsecured loan for a while. See how mush you have taken off the unsecured part and see if then you want to start paying more.

kieran1979

I'll add my opinion to this overpayment discussion as I'm doing the same thing.

I'm lucky to be able to be over paying about 1100 per month. When I call up to do it, I'm asking them to take it off the secured amount, not the unsecure.

The reason for this is purely so that when I get the balance down to a suitable amount it'll open options to remortage with other lenders. Albeit the unsecured will go up by 5% in my case, I want to at least have the option to move the bulk of my borrowing to another company if I need to.

K

Rommo_3

kieran1979 wrote: »

I'll add my opinion to this overpayment discussion as I'm doing the same thing.

I'm lucky to be able to be over paying about 1100 per month. When I call up to do it, I'm asking them to take it off the secured amount, not the unsecure.

The reason for this is purely so that when I get the balance down to a suitable amount it'll open options to remortage with other lenders. Albeit the unsecured will go up by 5% in my case, I want to at least have the option to move the bulk of my borrowing to another company if I need to.

K

Thanks for your input. If/when it comes to remortgaging, then I was only thinking about moving the whole amount, rather than one part.
Although, if the overpayments on the secured part made enough of a difference that we could get a significantly lower interest rate with another provider than we're paying now, then paying an extra 5-ish % on the unsecured if left with NR would probably be evened out.
I suppose I could overpay £200 on the secured and £100 on the unsecured.
Hmm… decisions, decisions.
Thanks all again.

Nonshy

If you pay funds off the unsecured you can't borrow them back.

FUBARatBIRTH

NR have for weeks now had an automated message on their mortgage centre phone line saying that in light of BOE reducing its interest rates again it was considering its position.

Well its no longer on the phone line so I phoned and asked. There answer?

We considered it and no we arent changing it! So NR is still sitting with a variable rate of 4.79 when the likes of Nationwide have reduced again with rates at about 2.50%

THEY ARE RIP OFF MERCHANTS!!! They forget we bailed them out and now it seems we the mortgage owners are to pay back their debts too. No wonder they can report how good they are doing at paying the debt back....!!!

Cant believe the press have not picked up on this.

luckyfool

FUBARatBIRTH wrote: »

NR have for weeks now had an automated message on their mortgage centre phone line saying that in light of BOE reducing its interest rates again it was considering its position.

Well its no longer on the phone line so I phoned and asked. There answer?

We considered it and no we arent changing it! So NR is still sitting with a variable rate of 4.79 when the likes of Nationwide have reduced again with rates at about 2.50%

THEY ARE RIP OFF MERCHANTS!!! They forget we bailed them out and now it seems we the mortgage owners are to pay back their debts too. No wonder they can report how good they are doing at paying the debt back....!!!

Cant believe the press have not picked up on this.

Nationwide and C&G are not charities, if they had any choice in the matter their SVR's would be much higher, their problem was they never anticipated rates coming down this far, or margins for borrowing money increasing so much so they have clauses linked to their SVR's guaranteeing that they will be no more than 2% above bank of england base rate. They have no room for manouver.

FUBARatBIRTH

Excuse me for my ignorance Luckyfool but how does not being above 2% of the BOE's rate (currently at 0.5%) equate to NR's current SVR of 4.79%??? I make that 4.29% above.

Everytime most lenders have reduced in line with the cuts but NR has refused or just given a small percentage of the cut. This latest one they have just said no so I am sorry but I dont see how that is fair. Of course they are not a charity but having been bailed out by the British tax payer and in many cases that being current NR mortgage holders I think the least they could do is play fair and have similar rates to most of the other bank and societies who have all passed on the rate cuts and still had Govt assistance.

MarkyMarkD

We have been over this before.

There is no sensible or logical reason for NR to offer stupidly low rates like 2.5%.

Any lender can charge anything it likes for its SVR.

NR was meant to be getting rid of its borrowers, to repay the government borrowings.

It is also meant to make money - because otherwise, taxpayers are losing money as it's 100% government owned.

Most of its borrowers are poor risks. You might not like that, but it's true. Anyone who is not a poor risk can remortgage elsewhere - and might save money by doing so.

Northern Rock honestly should be pricing more expensively than it is. 4.79% is a ludicrously low rate for a 140% mortgage - which some NR borrowers have got, if not higher.

"Playing fair" is not fair on taxpayers, if it involves Northern Rock losing money.

deefadog

Hi, can someone just confirm something for me, as i want to be 100% sure. I paid a 20k off my mortgage last year. Am i right in think that if i needed to i can borrow some or all of this back if needed? If so how long does this generally take to receive the funds?

Many thanks

luckyfool

deefadog wrote: »

Hi, can someone just confirm something for me, as i want to be 100% sure. I paid a 20k off my mortgage last year. Am i right in think that if i needed to i can borrow some or all of this back if needed? If so how long does this generally take to receive the funds?

Many thanks

If it was overpaid against the secured mortgage then yes you can apply to borrow it back at the product rate. It's not quite as straightforward as it used to be, as NR now ask you to apply in writing (it used to be one telephone call), and they also now ask what the money is for and if your circumstances have changed. i.e. If you say you have lost your job etc, then they might well refuse the borrow back request. Regardless of this, you would still be able to take payment holidays up to the amount of any previously overpaid amount (over and above the standard 1 month holiday you are permitted for every 12 months (possible to roll up a maximum of 3 months if unused).) I cannot comment on how long it will take, previously it was a couple of working days from the phone call, I suspect you might well be a week+ now though.