Northern Rock End of Mortgaged Deal (Merged Threads)

Mary_Hartnell

In that case all the "good risks" in the "good bank" would re mortgage and move somewhere else.

Dan:_4

There will be a public up roar if the 'bad bank' suddenly set their SVR to a margin even more above the base rate. There are certain terms and conditions that cannot be changed, such as after 7 years NR customers get 0.25% SVR loyalty discount.

I suspect the 'good bank' will be attractive enough to quickly sell, i.e tesco or virgin while the 'bad bank' will remain in Government ownership.

GoFigure

I've had a letter offering a number of deals too, but they want to carry out a 20 minute mortgage assessment - has anyone been through this and been accepted/rejected?

pstones578

I've just been offered the following new deals after coming to the end of my 3yr fixed

term ----%

---

fee

---

payment pcm ----cost over 2 yrs

---

inc fees
2 year --4.19

---

£995.00

---

£783.70

---

£18,808.80

---

£19,803.80
2 year --4.89

---

£0.00

---

£836.70

---

£20,080.80

---

£20,080.80
3 year --5.19

---

£995.00

---

£860.00

---

£20,640.00

---

£21,635.00
3 year --5.79

---

£0.00

---

£907.50

---

£21,780.00

---

£21,780.00
5 year --5.59

---

£995.00

---

£891.00

---

£21,384.00

---

£22,379.00
5 year --5.89

---

£0.00

---

£915.00

---

£21,960.00

---

£21,960.00

picardygirl

GoFigure wrote: »

I've had a letter offering a number of deals too, but they want to carry out a 20 minute mortgage assessment - has anyone been through this and been accepted/rejected?

A colleague at work had exactly the same a few months back ...... went though everything over the phone, took about 20 minutes, everything was accepted and agreed received everything in writing in a few days, but had to return the papers by a certain time to guarantee the deal.

MarkyMarkD

Whilst it may seem unfair for "bad bank" to have a higher SVR than "good bank", the sad reality is that NR should have a higher SVR than it currently does. It is losing money hand over fist.

There is no logic at all in the proposition that just because it is necessary to reduce the SVR for "good bank", the SVR for "bad bank" should stay at a loss-making level.

And if the government chooses to do that, it is simply throwing away taxpayers' money for the benefit of those who over-borrowed.

picardygirl

MarkyMarkD wrote: »

Whilst it may seem unfair for "bad bank" to have a higher SVR than "good bank", the sad reality is that NR should have a higher SVR than it currently does. It is losing money hand over fist.

There is no logic at all in the proposition that just because it is necessary to reduce the SVR for "good bank", the SVR for "bad bank" should stay at a loss-making level.

And if the government chooses to do that, it is simply throwing away taxpayers' money for the benefit of those who over-borrowed.

I do agree with what your saying ..... but until NR decide how they are splitting their mortgage customers (me included) i feel like i'm in limbo.

We have currently a (3 year old) 70% LTV mortgage (tied in for another 2 years) and hoping that we will be put in the "good" side, as we didnt over borrow, or over stretch ourselves, simply went with NR as they were offering the best deal at the time ...... so if we are put in the bad side we wont be happy at all !

Nothing we can do though if we are, just continue to overpay and keep our credit rating in tip top condition and hope for the best when we need to move our mortgage when our current fixed rate ends.

MarkyMarkD

If that's a current 70% LTV, then it's not "bad" at all and it would be unfair to be treated as such ... but equally well, you could easily remortgage so isn't it academic whether you get a good deal or not?

picardygirl

MarkyMarkD wrote: »

If that's a current 70% LTV, then it's not "bad" at all and it would be unfair to be treated as such ... but equally well, you could easily remortgage so isn't it academic whether you get a good deal or not?

Going on house prices (sold prices) in our road very recently, yes we are at 70% LTV, probably went down to about 60-65% a couple of years ago in the peak..... but who knows how NR will value the properties when they come to sorting them out.

MarkyMarkD

Using regionalised Halifax house price indices probably - that's how most lenders do any sort of internal revaluation.

If you look up your house's value on Zoopla it is normally similar to the value a lender will estimate IMHO.