Northern Rock End of Mortgaged Deal (Merged Threads)

Nonshy

Kieran1979:

The only time you have to write in with signatures is when you don't pay by DD. Bank details required and signatures needed before can release the funds to your bank account but if you don't pay by DD you can request a cheque.

The procedure has changed slightly but it can all still be requested over the phone, just takes 4-5 minutes longer as you will be asked: reason (remember NR's money so don't be offended), income after tax each month, any other loan payments you have, credit card balances, any BTL properties and household expenditure.

Once gone through this and if income covers expenditure then funds will be released.

The whole point is to prevent people who have been made redundant or have large debt repayments worsening their situation.

Similar procedure applies to payment holidays now... if your income just covers mortgage payments you may struggle to get a payment holiday.

kieran1979

Nonshy wrote: »

Kieran1979:

The only time you have to write in with signatures is when you don't pay by DD. Bank details required and signatures needed before can release the funds to your bank account but if you don't pay by DD you can request a cheque.

The procedure has changed slightly but it can all still be requested over the phone, just takes 4-5 minutes longer as you will be asked: reason (remember NR's money so don't be offended), income after tax each month, any other loan payments you have, credit card balances, any BTL properties and household expenditure.

Once gone through this and if income covers expenditure then funds will be released.

The whole point is to prevent people who have been made redundant or have large debt repayments worsening their situation.

Similar procedure applies to payment holidays now... if your income just covers mortgage payments you may struggle to get a payment holiday.

Great thanks for that... Comforting to hear, as I've been overpaying loads - effectively using it like an offset. Don't need to use the borrowback, but you never know and I was a bit concerned that if I did ever need to it wouldn't be possible.

booboomania

conar686 wrote: »

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

Conar686 - does this mean the unsecured loan is written off? I am pretty sure that our loan agreement was unsigned by both parties, and am currently waiting for NR to send a copy to me.

Rommo_3

As previously posted in this thread, I bought a flat with two friends using an NR Together mortgage.

We're currently repaying £300 p/m overpayments on the unsecured loan part.

I'm wondering if anyone knows whether each of us could get a '0% on purchases' credit card, split the remainder of the loan 3 ways and each pay a third on the credit cards?

Alternatively, I've read a few posts on here that state if you pay the mortgage part off but leave the unsecured loan with NR, you pay about 5% more interest on the loan.

Does anyone know if, for example, you owed 200k on the mortgage and 20k on the loan, and remortgaged 199k leaving 1k mortgage and 20k loan with NR, whether you'd pay the extra 'penalty' interest on the loan?

Any help greatly appreciated.

Cheers

Nonshy

Rommo_3 wrote: »

As previously posted in this thread, I bought a flat with two friends using an NR Together mortgage.

We're currently repaying £300 p/m overpayments on the unsecured loan part.

I'm wondering if anyone knows whether each of us could get a '0% on purchases' credit card, split the remainder of the loan 3 ways and each pay a third on the credit cards?

Alternatively, I've read a few posts on here that state if you pay the mortgage part off but leave the unsecured loan with NR, you pay about 5% more interest on the loan.

Does anyone know if, for example, you owed 200k on the mortgage and 20k on the loan, and remortgaged 199k leaving 1k mortgage and 20k loan with NR, whether you'd pay the extra 'penalty' interest on the loan?

Any help greatly appreciated.

Cheers

Regardiing credit cards... no.

unsecured will have a loading between 3% and 8%... depends on your product

I don't understand the third question... you can reduce balance to £1000 on mortgage but no company will take second charge on the property and NR won't go second charge... so unsure how you will remortgage for £199k and leave £1000 balance... please correct me if I have misunderstood your third question.

MarkyMarkD

No you haven't misunderstood. Rommo is repeating the oft-repeated error of assuming you can move "most" of your mortgage elsewhere, to avoid an ERC or a similar penalty. You can't do it, because nobody is going to give you a decent deal on a second charge mortgage.

Why would you want to, anyway? Surely the rate on the NR mortgage is better than it will be from anyone else, given the huge unsecured debt you are looking at retaining?

picardygirl

Hi guys - dont normally post on here but have a question and wonder if any one can advise me - we are in the next month going to be paying off £11k off our mortgage - we currently have a NR fixed rate (5.19%)until Nov 2011 - we have £50k on interest only and £140 on repayment on top of that we have a £15k secured loan (at base rate which is 4.79 variable). My question is which part of the loan should we allocate the £11k to ? I have read earlier in this thread that it is possible to allocate it where we want!

thanks x

luckyfool

Depends on how long is left on the fixed, and your plans. In normal circumstances I would imagine allocating it to the interest only portion of the fixed rate would have the greatest impact. If rates rise of course the unsecured loan could very quickly get more expensive than the fixed, but keeping that element unsecured gives you options and flexibility if you need to move later and want to keep it unsecured.

MarkyMarkD

If you read the post properly, luckyfool, the whole thing is secured.

You mean that the VARIABLE bit might get expensive if rates rise, not the UNSECURED bit.

The OP does not have the flexibility you assume they have as the whole thing is secured.

picardygirl

luckyfool wrote: »

Depends on how long is left on the fixed, and your plans. In normal circumstances I would imagine allocating it to the interest only portion of the fixed rate would have the greatest impact. If rates rise of course the unsecured loan could very quickly get more expensive than the fixed, but keeping that element unsecured gives you options and flexibility if you need to move later and want to keep it unsecured.

Luckyfool - its fixed til Nov 2011 (so another 2 and a half years) and yes the loan is secured (this has gone down gradually by £30 per month during the interest rate reductions) as MarkymarkD said.

My initial thoughts are to pay a lump off the interest only part, then we intend to keep the payments at what we currently pay (depending on what the actual required payment is, we are hoping to pay a bit more than we currently do) to try and start reducing the mortgage slightly quicker. Not just that, if NR still wouldnt be able to put us on another deal when ours finishes, and we move lenders, we would be able to try and secure and better LTV deal, thats the plan anyway :cheesy: