Northern Rock End of Mortgaged Deal (Merged Threads)

deefadog

Thanks. My 5 year fixed deal is due to end next September. I am on (like many here) Fixed at 5.1 (ish)% base rate was around 4% at the time we took it out i think, so even if the base rate rose 4% in the next year or so i would be in a similar situation as i was when i first took the deal yes?

I would love to bail now, but as the penalty is up to the end of the mortgage i have no choice!

payless

Fixed rates at the time would reflect the underlying rates at the time , plus the trend ( ie do they look like they will rise or fall in coming months after that point) + perhaps more importantly the margins applied to the base rates / libor / cost of funding
+ of course your own circumstances - ie LTV , income multiples required

MarkyMarkD

I think that the extent to which both new tracker and new fixed rates have failed to track BBR downwards is entirely down to lenders' increasing risk aversion, and the increased capital requirements the FSA is imposing on them.

Those two reasons certainly explain the relative increase in cost of higher LTV mortgages, to the extent that they are almost impossible to obtain at some percentage levels.

But I wouldn't be surprised if the price of both new trackers and new fixes DOES track BBR upwards, because the risk and capital issues are not going to go away in the next few years. So, if you could get a fixed rate of 5.1% when BBR was 4% (and the outlook was lower, not higher), you will definitely not be able to get a fixed rate of 5.1% again if BBR goes back up to 4% (both because the outlook will be higher, and because of the afore-mentioned reasons).

So Payless's analysis on hedging is interesting ... it certainly would make sense for those on very cheap lifetime trackers to consider hedging against the risk of rates increasing, and the overall deal may work out cheaper than buying a fix (which will itself likely include the loss of the later years of the attractive rate you are currently on).

gratefulforhelp_2

Finally, Northern Rock have removed the notice from their website saying they will not offer new deals to existing customers.

What that means in practice, though, is anyone's guess.

kieran1979

gratefulforhelp wrote: »

Finally, Northern Rock have removed the notice from their website saying they will not offer new deals to existing customers.

What that means in practice, though, is anyone's guess.

In true panto style - Oh no they haven't!!!

Where are you looking?

http://www.northernrock.co.uk/mortgages/current-rates/residential/

gratefulforhelp_2

yeah on the bit headed "existing customers" will have another look now, but the woman I spoke to on the phone agreed with me that they had removed it.
here http://www.northernrock.co.uk/mortgages/existingCustomers.asp

ok I see what you mean.

bexxie90

Have a dilemia

Me and Dh are in a bit of a pickle financially and our mortgage is £1108 per month at repayment of £141000 mortgage and £29000 unsecured loan at a fixed rate of 5.9% until 2011. Our house is now worth £150 at a push as we did the 125% together mortgage.

Now my Q is our redemption is £6k to get out and I am wondereing is it worth it to save on our monthly amount?

Dont know what else to do at the moment feel like chucking it all in and going BR but I wont.

Would really appreciate some answers guys thanks bex

mcateer4

HI everyone, I've come to the end of my NR deal and after checking what product it was it actually said "1D6I - (FSO) TOG 2 YR FIXED 95% REM HWC", which to me from what I can see it is a 95% mortgage is that right???

After reading all the 38 pages of this many people have a 125% mortgage product, but does that mean I have as well??? I'm a bit lost, can anyone help me to see what sort of mortgage I took out???

thanks

MarkyMarkD

Dear me, mcateer.

It is a bit worrying that people buy a huge asset (a house) with a huge debt (a mortgage) and don't have a clue what they've got!

If you tell us how much you borrowed in the first place, and how much your house purchase price was (or its valuation at the time, if it was a remortgage) then we can tell if it was a 95% LTV loan or not.

Even if it was priced on 95%, it could easily have been - say - 91% or something like that.

mcateer4

Something like £75k valuation, borrowed £70k and then another £20k for the unsecured part.