Northern Rock End of Mortgaged Deal (Merged Threads)

gratefulforhelp_2

Let me know if it works for you, and I'll try it...

tryinhardtosavethepennies

gratefulforhelp wrote: »

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"

Anybody know any more about this?

We're "stuck" with NR and in negative equity to the tune of about £10-15k. Keep thinking that if we could convert some of it to an unsecured loan and take it with us, that might be an option (of course, we lack a deposit on the next place, but we're saving like crazy to meet that).

Please do post any info you may have on this - has anybody tried moving and porting their NR mortgage? (Though, unless you're "stuck" like us, I can't see why anyone would want to!)

Thanks!

aggcardiff

I've recently climbed my way out of £28k of unsecured debt via the fantastic CCCS. I would appreciate any advice with the following.

I'm stuck with a bad deal with Northern Rock. At the moment I am absolutely fine (given the low interest rates) as I'm on their standard variable rate. I have enough income to buffer an interest hike even if they bounce back to what they were 18 months ago. However I DO worry about them going higher but if I remortgage in the next 2 years, my penalty with NR will be about £6k.

At the moment I have about 15% of equity - but I'm aware that this will decline. Shall I just stay as I am and pray that the interest rates don't do what they did in the 90's? I have about £6k in savings so I could cover the early interest charge if needed, but there's no guarantee I would get a good mortgage now anyway, despite being debt free.

lisa*_5

I'm unfortunate enough to have a Northern Rock Together mortgage. Fixed rate is due to come to an end in December so when should I receive an offer from them? We manage fine at the moment so plan on overpaying anyway.

gratefulforhelp_2

Unless you are moving, and/or have a very low loan-to-value, (which is unlikely for a together mortgage) you are unlikely to be offered any other mortgage product. I'm hoping that the good-bank, bad-bank plans will ease this situation for people.

MascaraMinx

tryinhardtosavethepennies wrote: »

Anybody know any more about this?

We're "stuck" with NR and in negative equity to the tune of about £10-15k. Keep thinking that if we could convert some of it to an unsecured loan and take it with us, that might be an option (of course, we lack a deposit on the next place, but we're saving like crazy to meet that).

Please do post any info you may have on this - has anybody tried moving and porting their NR mortgage? (Though, unless you're "stuck" like us, I can't see why anyone would want to!)

Thanks!

We did, although we moved to a cheaper house so no negative equity. If you can get a loan to cover the negative equity you should be able to port 100% (of the new homes value) mortgage over from NR, I'm pretty sure of that. Hope this helps?

jwil

tryinhardtosavethepennies wrote: »

Anybody know any more about this?

Please do post any info you may have on this - has anybody tried moving and porting their NR mortgage? (Though, unless you're "stuck" like us, I can't see why anyone would want to!)

Thanks!

We've just had agreement to port our mortgage with NR, though we have a little different situation in that we are moving so we can buy out my BIL's half on an inherited house and we are selling our current house. We will have a good LTV of at least 75% with the new house, but we are stuck with NR because of my debts. (Which I fully admit are my own fault!) :mad:

I think if you are going to be in a better position when you move then you shouldn't have any problem porting your mortgage. As far as I recall NR do not have any decent fixed rate deals though unless you have a minimum of 75% LTV, and the best then are (I think) 2 yr 4.89% or 2yr 5.39%. All the rest were over 6%.

Jwil

jwil

gratefulforhelp wrote: »

I'm hoping that the good-bank, bad-bank plans will ease this situation for people.

Can I ask what this is please gratefulforhelp?

jwil

aggcardiff wrote: »

I've recently climbed my way out of £28k of unsecured debt via the fantastic CCCS. I would appreciate any advice with the following.

I'm stuck with a bad deal with Northern Rock. At the moment I am absolutely fine (given the low interest rates) as I'm on their standard variable rate. I have enough income to buffer an interest hike even if they bounce back to what they were 18 months ago. However I DO worry about them going higher but if I remortgage in the next 2 years, my penalty with NR will be about £6k.

At the moment I have about 15% of equity - but I'm aware that this will decline. Shall I just stay as I am and pray that the interest rates don't do what they did in the 90's? I have about £6k in savings so I could cover the early interest charge if needed, but there's no guarantee I would get a good mortgage now anyway, despite being debt free.

Well done on paying off your debt aggcardiff, that's a fantastic result! :T:T

If it was me in your situation, I would probably stay where I was for as long as I could and overpay as much as possible to build up the equity, and then if interest rates started going up, try and remortgage then.

I don't know how many good deals there are around that are available for 85% LTV - and would also be worth paying the £6k charges for.

It would probably be worth getting some advice from an IFA who could probably give you an idea of what would be available for your situation and whether the 6K exit fees are worth it.

BTW, when I go on to their SVR next month, I don't have to pay any penalties to leave as I only had these when I was on a fixed rate - presumably you had some kind of different deal then. Just wondering, because I hadn't seen that on any of their products I looked at.

gratefulforhelp_2

jwil wrote: »

Can I ask what this is please gratefulforhelp?

the word in the press is that they will transfer all the "good" ( in inverted commas because I make no value judgements) business into one business, and allow it to relax it's lending criteria, and then all the "bad" (in inverted commas for the same reason) business into another, where further lending will be restricted/not happen.

The optimistic part of my family (DH) reckons the good part will be anyone not in negative equity, or in arrears. The pessimistic part (me) reckons this will be anyone with LTV equal to or less than 60%.

It is only in discussion, I think, not a fait accompli.