Northern Rock End of Mortgaged Deal (Merged Threads)

Keith

How did Northern Rock decide which accounts would be held by which company?
The majority of mortgages and all unsecured loan accounts are remaining with the existing company, Northern Rock (Asset Management) plc. All of our customer savings accounts and a small proportion of mortgage accounts have been transferred to the new bank, Northern Rock plc.
Northern Rock plc is a relatively small bank and most mortgage accounts are staying with Northern Rock (Asset Management) plc as they are associated with our previous securitisation programmes.
Like all banks, Northern Rock raises funding in order to lend money to mortgage customers. In the past we have raised a large proportion of our funding from investors who are assigned groups of Northern Rock mortgages as security. This funding approach is known as securitisation. It is common practice for banks and does not affect the way customers deal with their lender.
Following the restructure, these funding programmes remain with Northern Rock (Asset Management) plc and as a result, all those mortgages which are linked to them - the significant majority - have also remained with Northern Rock (Asset Management) plc.

From the NR website

picardygirl

cj190782 wrote: »

Guys I need your advice,

3 years ago as first time buyers my wife and I took out a 7 year Fixed Rate mortgage (5.99%) worth 125% of our house value (140K mortgage on a 115K property). This was to cover the deposit and do some maintenance on the property.
I, like most others, have received the letter stating I am with the asset company who are not offering any more mortgage products.
With the market now not offering mortgages anywhere near that value without a substantial deposit, what can I do? When the 7 years are over, does my mortgage continue at SVR or am I forced to move to another company?

Help!

You need to refer back to your mortgage offer terms and conditions, what i would highly imagine after the 7 years fixed rate you will go straight onto SVR.

picardygirl

MascaraMinx wrote: »

I don't really understand it either, why is it so terrible to be with the Asset side of things, I'm struggling to see what difference it wil make?

I think folks worries are if they are unable to move there mortgage from NRAM due to too high LTV/negative equity or bad credit rating, so unable to secure a deal with another lender, and if NRAM's SVR goes higher and higher, how will people afford to pay their mortgages !

Fingers crossed we are ok, currently 70%LTV good credit and tied in for another 20 months ...... hopefully we'll be able to move lenders and all should be ok, but its still a worry!

Becles

MascaraMinx wrote: »

I don't really understand it either, why is it so terrible to be with the Asset side of things, I'm struggling to see what difference it wil make?

My worries:

I'm already on SVR after my fix ran out and they've said nobody will be offered another deal in the future.

When I took out the original mortgage, the branch advisor said it would be possible to go onto another deal when the previous fix ended, but obviously that is no longer true.

The asset management bit is not a bank in the traditional sense of the word, and they won't be touting for new business. Therefore there is no business reason to keep the SVR competative.

Hopefully the SVR will just follow the BOE's up's and down's as it does now, but it is a worry that they may put it up higher and therefore my payments will increase.

b0rker

semanticist wrote: »

I've written a script which pulls the current SVR value off of the Northern Rock Asset Management website so I can keep track of it. Because I use Twitter a lot I've had to post to an account there.

Thanks.

Very useful.

Elfin_Marvel

We got our letter in the middle of last week. We are also with NRAM - have about a 60% LTV mortgage, fixed well above the SVR until May 2011.

I think the split up of the banks was due to how and when your loan was financed rather than any reflection on you, the mortgage holder.

Our mortgage was started in 2004, and I was working full time, and my hubby is self employed. I now work part-time, and am really worried about our ability to get on a similar deal when this one is up.

We haven't missed any payments ever, and I try to overpay every month, even if only by a little.....

aarghhh - wish I'd gone with another bank all those years ago now....

picardygirl

Elfin_Marvel wrote: »

We haven't missed any payments ever, and I try to overpay every month, even if only by a little.....

aarghhh - wish I'd gone with another bank all those years ago now....

Us too .....never missed a payment, overpay by £100 each month, not a lot i know but by the time our deal ends, Sept 2011 we would have overpaid for 2 years and 1 month so £2500 overpayments, so that will be that much less owing on the mortgage to try and move it ..... so it may not seem a lot but every little helps ..... or thats what i'm telling myself every month when i see that direct debit hit the bank account :eek:

So wish we had chosen another lender years ago too ..... but hey nobody would have imagined the financial crisis that hit last year/year before and the collapse of many banks etc etc ......

My biggest regret is signing up for a 5 year deal, 3 years ago, if only i'd gone for a 2 years one i'd be on SVR paying less than i am now ..... and would have been able to move lenders last October before NRAM existed ! Isnt hindsight wonderful

deefadog

So what is a healthy LTV that other lenders will give you a mortgage for? I would assume anything under 70% would be fine?

MascaraMinx

picardygirl wrote: »

I think folks worries are if they are unable to move there mortgage from NRAM due to too high LTV/negative equity or bad credit rating, so unable to secure a deal with another lender, and if NRAM's SVR goes higher and higher, how will people afford to pay their mortgages !

But surely this applies regardless of whether you are with NRAM or the other part of the business? The scary part is to be with Northern Rock at all, regardless of this new separation of business entities?

Becles wrote: »

My worries:

I'm already on SVR after my fix ran out and they've said nobody will be offered another deal in the future.

When I took out the original mortgage, the branch advisor said it would be possible to go onto another deal when the previous fix ended, but obviously that is no longer true.

The asset management bit is not a bank in the traditional sense of the word, and they won't be touting for new business. Therefore there is no business reason to keep the SVR competative.

Hopefully the SVR will just follow the BOE's up's and down's as it does now, but it is a worry that they may put it up higher and therefore my payments will increase.

I'm in the same position as you, high LTV, unable to get another deal. We have a reasonably high joint income and very secure jobs, so it's not like we are a huge risk, but we can't move from NR unless someone starts offering a 90% LTV mortgage for remortgagors. However, I am thinking that perhaps with NRAM being government owned and not a competitive bank, it will be in their interest not to have repossessions and bankrupting people left right and centre? Surely they know it's risky debt which is why it's been taken on.

Or is this too simplistic a view?

beanielou

No I have to agree I am tending towards the simplistic view as well.