Northern Rock End of Mortgaged Deal (Merged Threads)

MarkyMarkD

The rate on the unsecured loan will typically increase by around 5% as detailed in your original mortgage offer. Writing to NR withb
your circs is irrelevant - Reading your n
mortgage offer/KFI would be more helpful!

MascaraMinx

chris81 wrote: »

hi, new here
our northern rock mortgage ends 1st October, going to 4.69% from 6.19% which is good, while we are going to try and keep the payment as it was, the property we have is really no longer suitable - 1 bedroom flat so we do want to move. Having got the together product (which we feel was all the broker wanted to give us but we accept we signed up so thats how it goes) we have mortgage of about 97k, unsecured loan of about 20k, property is now worth about £105k.
so we are looking at around 15k shortfall. essentially what we are wondering is if NR will let us put the property on the market, when it has sold pay the mortgage off in full and carry over the remainder of the unsecured which would pay off whilst we rent a house, any thoughts?
ive written to NR with a description of circumstances and asked if the rate or servicing of the unsecured loan would change

Are you in a position to take out a loan with another lender to cover the £15k shortfall? You might be able to get a better rate elsewhere than staying with NR, who will charge you around 12% I think. The Together products allows overpayments at any time so you would be able to take the loan to repay the unsecured part at any point.

Like you, I was also talked in to the Together product - sounded so good at the time! The silly thing is our household income is pretty good, we could definitely afford to keep up payments, we just can't find a lender who will take us on!! Fingers crossed for low SVRs for some time to come eh?!

paulin_8

wow. Cant believe this

b0rker

You cannot believe what?

Nonshy

chris81 wrote: »

hi, new here
our northern rock mortgage ends 1st October, going to 4.69% from 6.19% which is good, while we are going to try and keep the payment as it was, the property we have is really no longer suitable - 1 bedroom flat so we do want to move. Having got the together product (which we feel was all the broker wanted to give us but we accept we signed up so thats how it goes) we have mortgage of about 97k, unsecured loan of about 20k, property is now worth about £105k.
so we are looking at around 15k shortfall. essentially what we are wondering is if NR will let us put the property on the market, when it has sold pay the mortgage off in full and carry over the remainder of the unsecured which would pay off whilst we rent a house, any thoughts?
ive written to NR with a description of circumstances and asked if the rate or servicing of the unsecured loan would change

yes you can pay off secured but as previously mentioned you will receive a loading 3%, 5% or 8%

Mary_Hartnell

Mary_Hartnell wrote: »

Northern Rock's financial figures out this week.
Not expected to be profitable.
Might provide pointers to the NR attitude to its remaining customers.

One mortgage in 25 now 3 months or more in arrears.
Fortunately (for the borrowers) this is a politically controlled bank, not the small office "sub-prime" branch of an American bank.
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Will it turn into another TSB, allowed to run itself and hopefully eventually be sold for a decent price?
I don't think so. If I had a NR mortgage, I would try to switch away from the politicians and the struggling over borrowed if I could.

The building societies of which few remain, publish their "efficiency" figures. These show how much they take in administration costs for their role as middleman between mortgage payer and saver. I wonder how NR's figures compare with say Nationwide. (Not that Nationwide is a lean organisation run to maximise returns to its owners. Most large organisations, especially the government ones, find themselves being organised for the benefit of the staff).

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chumfatty

Hello There, I have had NR 100% Mortgage for 12 years. I currently owe 55,000 on a house worth 110,000. I have been thinking of remortgaging for a while to release some equity to make improvements to my home. With the latest developments on a Struggling Northern Rock is it worth me taking my business elsewhere?

b0rker

We got a 2 year fix at 6.99% on a 100% Together mortgage in August 2007. £100,000 mortgage and a £5,000 unsecured loan. Our house is probably now worth in the region of £95,000 (still a strong market in Inverness). As far as Northern Rock's figures are concerned we are in Negative Equity for about £10,000. We have actually saved £20,000 since August 2007 (yes shouldn't be paying down the loan in one big lump sum but we have had the money in ISAs etc so not THAT bad). We will hopefully be able to secure another deal elsewhere on the £79,000 that will be outstanding on the mortgage once we leave the £5,000 unsecured with NR and take into account the £1000 we have paid off over the 2 years.

Its that or stay on the SVR which when it is at 4.79% is not very appealing. Hoping to secure a 5 year fixed for around the 5% mark with maybe some more savings needed first to get the LTV down.

gratefulforhelp_2

Northern Rock are now offering mortgages to existing customers, but only if they are moving house...

"Please note that our remortgage range is not available to existing Northern Rock customers who wish to change their existing mortgage deal without moving home"

deefadog

So if i sell to the wife, does that count? :rotfl: