Northern Rock End of Mortgaged Deal (Merged Threads)

MarkyMarkD

The selection criteria, as has already been posted on this thread, has nothing to do with how good you are.

The selection is that if your mortgage had been securitised by NR prior to their collapse, you will end up with NRAM. IF they had not securitised your mortgage - which is very rare, and normally means you have a very recent mortgage - then you will end up with NR.

I wish people would stop saying "but I'm an angel and I've ended up with NRAM". That's irrelevant. You are with NRAM because NR doesn't own your mortgage - they had already sold it, before they got into difficulty.

And as for "it's not fair that I'm going to be treated differently because I have ended up with NRAM" - all NR mortgages, for many many years, had terms in the contract allowing them to sell the mortgages to any third party they liked. Without this clause, they couldn't have securitised and they wouldn't have been able to indulge their funding model.

Once you've been sold to any third party - as completely 100% permitted by your mortgage contract - that third party can set their SVR at any rate they choose. They always could do this; it's just that they didn't do this when the third parties were actually NR-controlled (effectively, if not legally) and they all operated the same SVR.

So please, stop saying "it's not fair that I'm with NRAM" and "it's not fair that NRAM can set a different SVR from NR".

Both are things that you signed up to when you borrowed from NR. If you didn't read the mortgage terms and conditions, that's rather hard luck I'm afraid.

Borrowers from most banks - and probably the larger building societies - should be aware that the ability to sell mortgages to third parties is a part of the deal for most mortgages on the market. If you don't want to be sold on, read the small print - or get your solicitor to do so - or ask your financial adviser to find you a lender who won't do this to you.

Keith

Thank you, I was starting to think I was going mad!

zipman23

MarkyMarkD wrote: »

Borrowers from most banks - and probably the larger building societies - should be aware that the ability to sell mortgages to third parties is a part of the deal for most mortgages on the market. If you don't want to be sold on, read the small print - or get your solicitor to do so - or ask your financial adviser to find you a lender who won't do this to you.

Well thats the last time I use THAT solicitors and so called IFA. Cheers for the heads up Marky!

enay73

Thanks Marky for your post.

So in this case NR can sell my mortgage to someone else, in this case can I ask the company who is the buyer then?
Also if NR sold our mortgages to a third party,then why the government stepped in? It doesn't make sense.
Also if they want perhaps in the future rise the SVR it wouldnt be profitable for them as almost the people are in negative equity and they couldnt even cover all the costs and capital once they repossessed the house.
The government is US and it should be fair like in any other european countries to be treated fairly and with respect.
Unfortunately it has been lot of speculations about lending money, especially people s got high debts on credit cards.
In UK credit card companies, loan companies or other financial institutes have decided to put an interest rates to different people as much they like it, even so high as in other countries would be considered as sharks.
Perhaps the government should rectify and protect people and not putting on debts with high interests rates. I wonder why we are in recessions and we feel it everyday especially with honest people who are paying every pence to survive. That's not good quality life. I would considered something else.
Sorry for my thread but this is a reality unfortunately

Enay

picardygirl

MarkyMarkD wrote: »

The selection criteria, as has already been posted on this thread, has nothing to do with how good you are.

The selection is that if your mortgage had been securitised by NR prior to their collapse, you will end up with NRAM. IF they had not securitised your mortgage - which is very rare, and normally means you have a very recent mortgage - then you will end up with NR.

I wish people would stop saying "but I'm an angel and I've ended up with NRAM". That's irrelevant. You are with NRAM because NR doesn't own your mortgage - they had already sold it, before they got into difficulty.

You say "the selection is that if your mortgage had been securitised by NR prior to their collapse - you will end up with NRAM" but wouldnt the customers whose deals ran out last summer/autumn and were eligible for renewal mortgages have been "securitised" as well ..... please dont bombard me with insults for not understanding the "securitised" mortgages part i'm just trying to understand ......

VIGILANT22

I don't understand what you don't understand?

picardygirl

VIGILANT22 wrote: »

I don't understand what you don't understand?

All NR customers mortgages would have been securitised when NR collapsed? YES or NO ?

Keith

picardygirl wrote: »

All NR customers mortgages would have been securitised when NR collapsed? YES or NO ?

Yes

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.

The new lending is not done this way and those people stay with NR.

picardygirl

Keith wrote: »

Yes



The new lending is not done this way and those people stay with NR.

Thankyou .... so it has nothing to do with LTV, affordability or anything ..... pure and simple if new NR mortgage NR plc, if older NR mortgage (ie before collapse) NRAM .....

Frustrating for NRAM tied in customers that intended to move/port their mortgage (though NRAM are saying that ERC could be waived if customers sell property and move house with a larger mortgage to a new lender) or intended to apply for additional borrowing soon .......

zuzuspetals

I wonder if anybody could help me?

I've been with NR for almost 3 years and now have about 90% LTV. I've been on the SVR of 4.75% for a while now (since my fixed rate ended) but am worried that it might suddenly increase. The Clydesdale could offer a fixed rate of 4.9%. My payments would go up £50 per month, but I would have the security of knowing that they wouldn't increase to something that I couldn't afford.

Is it stupid to remortgage when it means that the intrest rate/payments will increase?

I've never remortgaged before and would be grateful if somebody would tell me what they think.

Thanks