Northern Rock End of Mortgaged Deal (Merged Threads)

jwil

gratefulforhelp wrote: »

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.

Thanks for this, I think I may have vaguely heard something like this. I agree with you that the 'good' ones probably will be those with good LTV which is a shame, because although we are now going to be in a better position when we move, if we hadn't been so unfortunate enough to lose my MIL, which has given us a real head start, I am sure we would be lumped in with the 'bad' mortgages even though we would not be in neg equity, and had never missed a payment - nor have I on my debts, however high they may be.

MarkyMarkD

I don't think there's any sense at all in setting the cut-off between "good" and "bad" at 60%. If house prices are moving in anything like an upward direction, loans at (say) 80% LTV and below are perfectly "good" and it would be a very unrepresentative set of "gold-plated" loans if it was 60% LTV and below. In order to realise as much cash as possible, the government will want to put anything they possibly can into the "good" bank.

gratefulforhelp_2

Fingers crossed that you are right.

Nonshy

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!

If you are in negative equity you wouldn't be able to move your home with NR.

Nonshy

lisa* wrote: »

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.

No together products will be offered new mortgages

Nonshy

gratefulforhelp wrote: »

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.

I agree wih the pessimistic part.

BankCo will hold all "good" customers and retail deposits whilst offering additional lending

AssetCo will keep all "bad" customers and not offer any additional lending.

The change is schedualled for November 1

Nonshy

MarkyMarkD wrote: »

I don't think there's any sense at all in setting the cut-off between "good" and "bad" at 60%. If house prices are moving in anything like an upward direction, loans at (say) 80% LTV and below are perfectly "good" and it would be a very unrepresentative set of "gold-plated" loans if it was 60% LTV and below. In order to realise as much cash as possible, the government will want to put anything they possibly can into the "good" bank.

The bad bank.... AssetCo will run its course with "bad" customers until last one out shuts the door... BankCo is seen as the company to generate new low risk business and keep "good customers... this will then be aimed at being returned to the private sector

phibo

Nonshy wrote: »

I agree wih the pessimistic part.

BankCo will hold all "good" customers and retail deposits whilst offering additional lending

AssetCo will keep all "bad" customers and not offer any additional lending.

The change is schedualled for November 1

It's an interesting how they are going to play it with the AssetCo customers.

Obviously the vast majority are going to be people on together mortages, and no doubt a large amount of them are going to be negative equity and also a high percetage of them are going to be arrears or just bad payers.

My wonder is what will happen too people such as myself.

Me and partner got a together in Feb 07 and to be honest were a bit blind to the whole NR situation, which is our own fault, but we were desperate to get on the housing market.

However we meet our payment without problem, have no debt anywhere else and are unlikely to be in much (if any) negative equity as the house we bought at the time was a total dump which we have almost totally renovated.

My concern is how they will be dealing with those customers in AssetCo who are the better ones, I know they won't be offering us any super deals and too be honest we won't be wanting to borrow anymore money.

Just hoping they don't treat everyone the same and screw us on the Apr?

Nonshy

phibo wrote: »

It's an interesting how they are going to play it with the AssetCo customers.

Obviously the vast majority are going to be people on together mortages, and no doubt a large amount of them are going to be negative equity and also a high percetage of them are going to be arrears or just bad payers.

My wonder is what will happen too people such as myself.

Me and partner got a together in Feb 07 and to be honest were a bit blind to the whole NR situation, which is our own fault, but we were desperate to get on the housing market.

However we meet our payment without problem, have no debt anywhere else and are unlikely to be in much (if any) negative equity as the house we bought at the time was a total dump which we have almost totally renovated.

My concern is how they will be dealing with those customers in AssetCo who are the better ones, I know they won't be offering us any super deals and too be honest we won't be wanting to borrow anymore money.

Just hoping they don't treat everyone the same and screw us on the Apr?

They won't be offering any deals or additional lending to AssetCo customers. You mortgage will continue as normal except you can't increase lending or be offered a new deal

lisa*_5

phibo wrote: »

It's an interesting how they are going to play it with the AssetCo customers.

Obviously the vast majority are going to be people on together mortages, and no doubt a large amount of them are going to be negative equity and also a high percetage of them are going to be arrears or just bad payers.

My wonder is what will happen too people such as myself.

Me and partner got a together in Feb 07 and to be honest were a bit blind to the whole NR situation, which is our own fault, but we were desperate to get on the housing market.

However we meet our payment without problem, have no debt anywhere else and are unlikely to be in much (if any) negative equity as the house we bought at the time was a total dump which we have almost totally renovated.

My concern is how they will be dealing with those customers in AssetCo who are the better ones, I know they won't be offering us any super deals and too be honest we won't be wanting to borrow anymore money.

Just hoping they don't treat everyone the same and screw us on the Apr?

We're in a pretty similar situation although we are likely to have around £10k negative equity. Our fixed rate ends in December and we have received a letter saying we will now being going onto a rate of 4.79% which means our payments lower from £710 to £620. However we can actually afford to increase our payments so we're going to change the DD to £750 in the hope that we can get out the negative equity. I think this is really our only option.