Northern Rock End of Mortgaged Deal (Merged Threads)

conar686

Hitman1 wrote: »

Hi, I'm looking for some pointers with my Northern Rock mortgage. My fixed term is up and i don't have enough equity to re-mortgage so i'm stuck. I'm thinking about selling the propoerty but i have an un-secured loan tied into the mortgage (also with NR). If i find a buyer i doubt the price will be enough to cover paying off the mortgage and the loan - could anyone give me some pointers as to a way out of this one? Will i need to try and get another loan to pay off the unsecured loan?

Thanks in advance!

Ask to see a copy of the Loan agreement for the unsecured part, I did and iwas unsigned by either myself and NR, therefore unenforceable under s127 of the CCA

elvis27

hello everyone this is my first post so bear with me. im on a repayment, fixed rate of 4.99% with northern rock which finishes in jan 2010, at the moment i still owe £48000 and my house is worth around £180,000. i would like some advice on which mortgage to go for next a tracker,repayment,discounted,fixed etc. im thinking more towards a fixed rate as we all know the rates are going to go up next year if not before. do you get better deals with the more equity you have in your property?. how long before i can start looking for a new mortgage before my old one is up? thanks in advance for any help.

char9

jackie34 wrote: »

Hi, am new to the forum and have a query over Northern Rock. I have received a letter from them today increasing my payments from May! They have increased the rate from 2.98% up to 4.76%!
I have a variable rate mortgage and was very surprised at receiving this as I wasn't aware of any base rate changes!

Can anyone help with advice?

I would say you are on a Together Mortgage and the initial three year period where the rate was guaranteed not to rise more than 1.99% above the Base Rate (making it basically a tracker for that time) has come to an end and you have now reverted to a rate which I think is guaranteed to be at least 0.01% below the Standard Varbiable Rate (it's something around that anyway, SVR by any other name)

I have had exactly the same letter this week for that exact reason. Your original mortgage paperwork should have this within the terms and conditions.

luckyfool

jackie34 wrote: »

Hi, am new to the forum and have a query over Northern Rock. I have received a letter from them today increasing my payments from May! They have increased the rate from 2.98% up to 4.76%!
I have a variable rate mortgage and was very surprised at receiving this as I wasn't aware of any base rate changes!

Can anyone help with advice?

At a guess you had a tracker for a specified period (e.g. 2 to 3 years) which tracked bank of england base rate at +1.48%, and reverts to the lenders SVR.

Mary_Hartnell

Looks like the bank will be split into two by a government desperate to raise some funds?

[FONT=Verdana,Geneva,Arial,Helvetica,sans-serif]Several newspapers have reported that Northern Rock may be sold off by the Government. Apparently Credit Suisse, acting as advisors to the Treasury, have sounded out a number of possible buyers for the company, or for part of it. It could happen as soon as later this year which is well ahead of the expected time scale for a disposal. Most commentators did not think much of the idea based on it being rather premature to sell at this point when the company has only partly recovered and when banks generally are not valued highly - a better price might be obtained later was the general opinion. But one only has to read the comments of financial analysts on the recent budget to realise that the Government may be desperate to raise some cash and the odd few billion raised from such a sale might assist them.

The plan is apparently to split the company into a "good bank" and a "bad bank" with only the former being disposed of. The good part might be the branch network and retail deposits, some older good quality mortgages and new mortgage lending. The bad part would be that part of the mortgage book with a high loan to value ratio, likely to default or in default. Other splits are also possible, but the good part might fetch as much as £2bn. The bad part would be run down and the company eventually wound up, as is being done with Bradford & Bingley.

Richard Branson's Virgin Group is one of the parties taking part in the discussions (he was clearly disappointed at being thwarted in his previous bid for the company before nationalisation).[/FONT]

I wonder which half will treat its mortgage holders better?

Decisions Decisions

mortgage-slave_2

As someone who spends a lot of time reading but not posted before - hello all! I am looking for some advice regarding my mortgage.

I currently have zero equity in my home as I purchased a £200,000 house two years ago on a intrest only mortgage. In the last two years simlar houses in the street have sold for around £215,000 to £220,000 and because of this I didnt regret my decision to 'move up the ladder'. But I have no doubt that in the current climate the pirce I paid would be at the top end of a mortgage valuation. To add to this I have also used circa £15,000 of the loan facility from NR.

I have now received a letter to say that my mortgage and loan payments will increace by a considerable sum despite the current low rates of interest.

I am in the lucky position that I can afford that increase in payments, however I worry that my mortgage rate appears to be 7% above a base rate that will not stay at such a low rate for more than a short period of time and I am concerend that within 24 months I will be looking at rates of circa 14% with a monthly payment I cannot afford.

In the long run I am sure that things will change and as house prices rise I will be able to use the equity to move or remortage however I am most concerend about further base rate increaes in the short term.

Although I have a good salary and good credit rating (never ever missed a payment on any loan, credit card, mortage or gas bill) I will not be able to move to another mortgage provider and see no alternative other than riding out the storm with northern rock.

HEADABALL

im currently coming to the end of my deal with NR unsure how to proceed .4years ago my fiance and i bought a flat ,just as we started uni .we are due to graduate and were going to sell are flat ,but obviously with the recession this may no longer be an option .so heres the score :

We graduate during the summer ,we have both secured graduate jobs in dublin (currently living in glasgow).we took 125% mortgage(silly i know but we were young and stupid) altogether we borrowed £60k .Our credit rating is not great ,in the first few years it took us a awhile to get on our feet ,in the last year weve really settled down paying bills on time (allow mortgage was never late or missed) and paying off our debts ,we now are up to date with bills ,no cc .only debt we have is £1k student overdrafts each ,student loans,and obviously NR mortgage ,our mortgage is made up of secured loans and unsecured loans aswell??????????.We contacted NR trying to get them to let us rent out our flat and cover mortgage payments they said no .

If we stay here we'll stand to lose around £35k in salary between us and have no graduate jobs lined up .Finally if we manage to let out our property ,wot will this mean if we look to buy in dublin in the near future ?

Nonshy

luckyfool wrote: »

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.

you don't apply in writing... you can but forms have to be sent which you fill in and return... you can borrowback over the phone just be aware of income and expenditure information... eg wages/bills/credit card balances

borrowback takes 3-5 working days to be in your bank account

or TT at £35 charge

Nonshy

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

yes aslong as income covers current expenditure.... you will get asked a few questions regarding income after tax, loan payments, credit cards, savings, household expenditure

3-5 working days or pay £35 for a TT (same day if before 11am)

kieran1979

Nonshy wrote: »

you don't apply in writing... you can but forms have to be sent which you fill in and return... you can borrowback over the phone just be aware of income and expenditure information... eg wages/bills/credit card balances

borrowback takes 3-5 working days to be in your bank account

or TT at £35 charge

Hey NonShy,

I hear what you're saying - and what you're saying always used to be the case...

However there's been a few people on these boards lately saying that they have had to put it in writing, with signatures from all mortgage holders - also that they're having to give a good reason for what the money will be used for.

Are you sure what you're saying still stands today, and it's still as easy???