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

Bosworth

byrnsey wrote: »

And is a simple house price value rise not sufficient equity?

I.E. if the house is worth 5% more at the end of the two-year fixed rate period, can that not count towards a better rate?

House prices are not going to rise 5% over the next 2 years - please don't rely on this for your financial planning! More likely is a 10-30% fall in house prices over that period.

mr.broderick

Bosworth wrote: »

House prices are not going to rise 5% over the next 2 years - please don't rely on this for your financial planning! More likely is a 10-30% fall in house prices over that period.

There you go you've heard it from the boss, get to benidorm.

dannyboycey

poppy10 wrote: »

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

Up in smoke!

Nicola550

chappers wrote: »

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.

Unfortunately, it's not a 1% increase in payments. It's nearer a 15% increase in payments.

Hopefully, by next Feb, NR will have off-loaded a lot of their customer base already and may have a lower rate. Unfortunately though...I suspect that losses from repo's (they are repossessing about 30 people per day at the moment on their own) will necessitate that the rate stays high.

Bf109

byrnsey wrote: »

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

I honestly wonder about people sometimes.....

Welcome to the real world where the magical pixies dont come to help you out. The rest of us have been here for quite some time. Time to adjust your life style and live according to your means methinks.

poppy10_2

Bf109 wrote: »

Welcome to the real world where the magical pixies dont come to help you out. The rest of us have been here for quite some time. Time to adjust your life style and live according to your means methinks.

I hope you never venture onto the DFW board - you'll have a coronary. :mad: :T

nelly_2

Relying on house prices rises is like relying on people promising things

Dont.....just dont

You can only rely on things that are within your control

PasturesNew

neas wrote: »

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

Just a random question .

In that case you are in negative equity, you keep your mortgage so you are paying a lot more and feeling like poo about it.

mattley

nelly wrote: »

You can only rely on things that are within your control

Which, generaly, is pretty much nothing when it comes to it.

This statement does not however dismiss learning about the factors involved, which though outside your control, can be mitigated against.

Andy_Hamilton

With all my Higher lending fees etc, my mortgage is more than 100%

I looked at my finances early this year and have worked out I need to save £8K if I want to get under the 90% mortgage (current house prices).

I now have a lodger and save can save around 600-700 per month. It's not nice saving but I have to do it to get a better mortgage deal when mine ends in feb 2009.

Use MSE fully can really help you reduce outgoings