Northern Rock End of Mortgaged Deal (Merged Threads)

picardygirl

Span2 wrote: »

Rang yesterday, our mortgage is with 'bad' bank, really annoyed. Been with them a long time, low LTV (owe approx 72% of current value), never missed a payment or made a late payment, very good credit rating, never made late/missed payment on anything else ever!! I asked if our mortgage was part of their securitisation programme, they wouldnt tell me (read on internet that 38 billion pounds worth of securitised mortgages now in the bad bank). Feel let down.

Sounds like your in a very similar position to me ...... practically identical LTV never missed a payment, very good credit rating etc, what is this securitisation programme though? not heard of this as yet?

picardygirl

Keith wrote: »

I will be however, reducing our overpayments this month and putting the payment to the minimum again.

I do feel sorry for those who took on the full together mortgage

Sorry if i'm being a bit slow here, but can i ask why you are stopping overpayments? We are stuck on our fixed til Sept 2011, our aim was to overpay so our LTV would be less so that we would be able to move lender easier with a lower LTV, if this is not one of the best things to do, please can someone advise me best options ..... thankyou

MrsBartolozzi

Hi everyone, I've just received my letter in the post and like most of you I assume, we are with the Asset Management side. I did wonder why - we've never missed a payment, about 72% LTV, OH has "safe" job etc.
I reckon it's maybe so that they can get rid of us as quickly as possible. Our fixed rate deal is up this month, and we are not able to get a new "deal" with them, and so will have to look around elsewhere.
From the letter they sent:
If I want a new mortgage deal, what options are available to me?
You can continue with your existing mortgage product, but Northern Rock (asset management) plc will not be able to offer you a new mortgage product or additional lending. If you would like a new mortgage deal, you may wish to consider what options are available to you from other lenders.

If 90% of their mortgages (ie those moved to Asset Man) are deals due to end soon, I imagine in the next 3 years or so there won't be many left.

Just my thoughts. We don't know what we are going to do now.

enay73

As I have spoken with them, the lady on the phone told me that as I do have a together mortgage I can actually get my secured part and transfer to another lender and keep the unsecured loan with them, so in some way I could still get a deal, but, the problem is that if I take the secured load to somewhere else I will not get a good deal and still get a similar interest rate which at the moment is 5.89%. I am doing my overpayments everymonth almost £ 200 extra and I will do my best as much I can until the end of my deal.
Also to be honest I have too many doubts but in some way if the Asset is still owned by the government, we shouldn't get perhaps a bad interests rate. The government should help us rather to put an high interest rate. It would be more sensible. Maybe it's a way to help people out and get on track as it is not anymore a bank as they cannot give us anymore deal. Also we are nearly to election period and they wont get negative impressions by the public.
Any ideas guys?

deefadog

No Letter yet - My LTV is around 35 - 40% - which should put my in the good bank, but there is no guarantee

But what i really want to know is if i am on the Asset Management side can i still borrow back my overpayments as i was using this as my savings and need to get some of it back next month. If not it's really bad as it should have had the option before the switch to withdraw!

enay73

As far I did understand the terms and conditions remained as before, they cannot lend you anymore money or making other deals, but I think you can still borrow back what you overpaid or ask for an holiday payment.
thats what I understood but of course its always under their discretion.
anyway why cant you call them and ask for it?
nothing to loose

Thumper7

Hi

Just received letter from Northern Rock. Despite having an LTV of 50% I am to remain with Northern Rock (Asset Management) plc. According to their letter there are no changes to the T&C's as a result of the restructure.

"This includes the use of flexible features such as overpayments, borrow back and payment holidays

However, the company does not offer new mortgage products, additional lending or savings products to customers. For example, if you move house and transfer your existing mortgage to your new property, you will not be able to increase the size of your loan". quoted direct from letter.

So I take it that you will still be able to borrow back overpayments.

Thumper

picardygirl

I was going to ring up today and find out, but am 99% sure now we'll be in the asset side of NR ........ deefadog am really interested in what side of the company you get put in ...... as would like to know how much LTV you need to be classed as non-asset side of the company.

Hopefully, it will all be ok, its peeps with bad credit ratings or negative equity i would imagine would struggle to find new deals when their current deals come to an end. I would be fuming though, if i'd signed up to a NR deal within the last six months like i know lots of people have done ......

deefadog

Thankyou everyone - my mind is at ease for now As soon as i find out i'll post here!

Keith

picardygirl wrote: »

Sorry if i'm being a bit slow here, but can i ask why you are stopping overpayments?

This was back in April 2009

luckyfool wrote: »

If it was overpaid against the secured mortgage then yes you can apply to borrow it back at the product rate. It's not quite as straightforward as it used to be, as NR now ask you to apply in writing (it used to be one telephone call), and they also now ask what the money is for and if your circumstances have changed. i.e. If you say you have lost your job etc, then they might well refuse the borrow back request. Regardless of this, you would still be able to take payment holidays up to the amount of any previously overpaid amount (over and above the standard 1 month holiday you are permitted for every 12 months (possible to roll up a maximum of 3 months if unused).) I cannot comment on how long it will take, previously it was a couple of working days from the phone call, I suspect you might well be a week+ now though.

Now I may be concerned about nothing here but if they started to make it more difficult before, then I expect that now when they want rid of all these customers they will make it more difficult again to borrowback your overpayments.