Im Stuck with Northern Rock SVR forever!

homer_j_3

If only one good thing came from greenhill finance being punished by the FSA, it had to be the removal of their annoying adverts!

And no matter how hard I pray for a shark to be in the sea for the man off the diving board into the sea, he still survives..

Dan_Collins_2

Dan, I bet £1 (cant afford any more being a mortgage broker LOL) that at the end of year NR are back and fighting. THey are offering great investment rates at the mo and will probably have less funding issues than a lot of other lenders. I would sit tight and not worry.

Some secured loan companies dont value in person and use desk top valuations, then they take an insurance policy to cover any legal !!!! ups!

NR would probably agree to a 2nd anyway, they get the money 1st whatever happens.

kingkano

I didnt realise that. Many thanks for all the clarifications. I must admit to the answers being pretty freakin scary though!!! (how easy is it to get into this massive debt like this, all secured on your home!)

SouthCoast

Im Stuck with Northern Rock SVR forever!

Im Stuck with Northern Rock Bad Debt Book forever!

Dan1979_2

Thank you.

Im going to get a settlement figure from FIRSTPLUS. Do they still use the rule of 78 these days? I took out the loan in Oct 06 and dont want to have to pay back more then I borrowed.

HelpWhereIcan

AFAIK First Plus are 1 + 1 rather than rule of 78 even on unregulated loans so that should not be the problem. First Plus are known to be a nightmare with PPI etc being non refundable, but assuming you did not take it your settlement figure should be on a 1 + 1.

I would investigate a 95% remortgage for debt consol with a personal loan for 25k for the rest (bar about £900).

Tesco will do a personal loan for up to 10 years which will keep the payments down. http://www.tescofinance.com/personal/finance/finance/loans/calculateLoanRepayment.do

Mortgage lenders who will do 95% for debt consol are not too numerous, but you should still have a few like C&G, Chelsea, First Active, Halifax plus a few others.

My rough figures give:

Tesco 25k loan over 10 yrs - £ 296.25
131,100 FA 5 yr fix @ 5.60 over 25 yrs - £ 826.19

Total £ 1122.44

Compared to what you may be looking at on NR SVR and your First Plus loan, it may not be too bad. Plus you will have the advantage of 25k of your borrowing becoming unsecured and being paid off in 10 years rather than however long your First Plus loan was over.

No reason to be stuck with NR's SVR at all.

Hope this helps.

Dan1979_2

HelpWhereIcan wrote: »

AFAIK First Plus are 1 + 1 rather than rule of 78 even on unregulated loans so that should not be the problem. First Plus are known to be a nightmare with PPI etc being non refundable, but assuming you did not take it your settlement figure should be on a 1 + 1.

I would investigate a 95% remortgage for debt consol with a personal loan for 25k for the rest (bar about £900).

Tesco will do a personal loan for up to 10 years which will keep the payments down. http://www.tescofinance.com/personal/finance/finance/loans/calculateLoanRepayment.do

Mortgage lenders who will do 95% for debt consol are not too numerous, but you should still have a few like C&G, Chelsea, First Active, Halifax plus a few others.

My rough figures give:

Tesco 25k loan over 10 yrs - £ 296.25
131,100 FA 5 yr fix @ 5.60 over 25 yrs - £ 826.19

Total £ 1122.44

Compared to what you may be looking at on NR SVR and your First Plus loan, it may not be too bad. Plus you will have the advantage of 25k of your borrowing becoming unsecured and being paid off in 10 years rather than however long your First Plus loan was over.

No reason to be stuck with NR's SVR at all.

Hope this helps.

Many thanks for this. Someone who has provided a solution at last!

Should I apply for the tesco loan first, reduce FirstPlus and then remortgage.
I like the idea of getting shot of firstplus, reducing my LTV and having 25K back as unsecured.

I should be get my FirstPlus settlement figure in the next day or so. Is this something I should do now or at the end of year when my fixed rate expires. If I do this now, I will incur 3K fees from NR, but if I wait till the end of year, my property could be worth less and I wont be able to remortage.

Uncle_Rico

Here's hoping for you that your property will still be worth £138k

HelpWhereIcan

Dan1979 wrote: »

Should I apply for the tesco loan first, reduce FirstPlus and then remortgage.

Now there's the trick!! I do not know enough about your situation to say really, but I would suggest giving Tesco a call and running it by them as a general enquiry first.

The last one I did was when Royal Bank Of Scotland still did personal loans through brokers. RBoS are the ones behind the Tesco personal loan and the policy was basically the same.

However, I used to be able to speak with the underwriter, explain what was being done and get it agreed - normally subject to sight of the mortgage offer for the remortgage. Therefore took a bit of toing and froing between lenders but was possible. Who says brokers do nothing :rolleyes:

Dan1979 wrote: »

I should be get my FirstPlus settlement figure in the next day or so. Is this something I should do now or at the end of year when my fixed rate expires. If I do this now, I will incur 3K fees from NR, but if I wait till the end of year, my property could be worth less and I wont be able to remortage.

I am not sure that the price will drop by enough for it to be worth paying a £3k erc (especially if NR stage some kind of return) but that is your call based on what you know of the area.

You could always get a re-mortgage with a lender who will accept First Plus's second charge as long as FP do a deed of postponement. At your current 1st mortgage LTV that should be a relatively achieveable task.

Whichever way round - remtg then loan or loan then remtg - should be possible and a broker with some ability to think laterally should be able to sort you out. I would suggest talking to one of the brokers you used to deal with (without gold teeth:rotfl: ) to see if they can point you in the right direction.