100% mortgage - Northern Rock dropping mortgageassets - how do we get a new mortgage?

byrnsey

Benidorm it is then!

yes, we're on a repayment mortgage.
basically, there is not a snowball's chance in hell of us being able to overpay between now and then, bar winning money, cos of the year-out loan.

So, we're gonna just have to go with it, see what things look like in the autumn.

But seeing as this is NR we are talking about, and the thought of saving for the future comes to mind. Then look at the NR savers themselves who did not come out so well, having saved all their lives for a rainy day.

No point in worrying about the future and on the other hand, we would be paying just 200 less a month rent for a flat, whereas we have a nice garden and space......

So, what will be will be.

mr.broderick

byrnsey wrote: »

Benidorm it is then!

yes, we're on a repayment mortgage.
basically, there is not a snowball's chance in hell of us being able to overpay between now and then, bar winning money, cos of the year-out loan.

So, we're gonna just have to go with it, see what things look like in the autumn.

But seeing as this is NR we are talking about, and the thought of saving for the future comes to mind. Then look at the NR savers themselves who did not come out so well, having saved all their lives for a rainy day.

No point in worrying about the future and on the other hand, we would be paying just 200 less a month rent for a flat, whereas we have a nice garden and space......

So, what will be will be.

Perfect...You see worse things are happening at sea.

chappers

As you said IF there is an increase in the value of your property then you may be able to escape from NR.Be thankful you don't have one of their 125% "mortgages" you really would be trapped then.
With the things as they are you would be looking at a 1% increase in your mortgage, not sure how big your mortgage is but hopefully that is manageable.

poppy10_2

neas wrote: »

What if your house drops in value? What would happen then?
.

Don't be silly - everyone knows house prices only ever go up! :j

wellandpower

byrnsey wrote: »

Hi
Would our only hope be that if our house value has risen by 3-5% that would count as 5% investment?

Sorry. It will take much much more than hope to make this happen i'm afraid.

IMHO you'll be lucky if you're not looking at a loss of 10% by then, depends where you are of course.

If you live in a flat, aka "Luxuary Appartment", think more like 25-30%.

brit1234

Possibly 50% on a newbuild flat in 3 years

wellandpower

poppy10 wrote: »

Don't be silly - everyone knows house prices only ever go up! :j

They will be going up, but only if everything else is upside down.

wellandpower

dekh wrote: »

Read the terms of your mortgage before you overpay
All is not doom and gloom, unless NR makes it's base rate highly unattractive, (which is a distinct possibility),

Have't they done this already?

sarah_elton

You can use this calculator to see what your repayments will be at different interest rates (e.g. the 7.59% you would change to if your fixed rate ended right now):

http://money.guardian.co.uk/calculator/form/0,,603156,00.html

This way you can plan what your monthly payment is likely to go up to, if you just stay with your current mortgage rather than trying to remortgage.

neverdespairgirl

byrnsey wrote: »

so, bottom line. Either we pay off more or we will be paying more???

Yes.

I'd really suggest you cut down on your expenses and save some money in the next year. EIther you can save enough to get a better LTV, or at least, get used to spending less so you can pay higher payments.