Northern Rock Re-mortgage

babydoll123

I currently have a fixed deal with Northern Rock due to end May 2nd. Ive spent the past 3 weeks on the telephone to so many brokers (including all the ones recommended on this site) ive lost count and now my brain is over-loaded!!
My mortgage with Northern Rock is fixed at 5.04%, repayments of approx £650 a mnth. My property is valued at £168350 and I need to borrow somewhere in the region of £124700. My salary is £125600.
Have been accepted with the Halifax, 3 year fixed deal for 32 years.
3.99% for the first year. 5.99% for the next two. £999 arrangement fee, free legal and valuation.
Have done my sums and have worked out that by adding the fees il be paying approx £680 a month as an average. Is this a good deal? I am confused. It appears to be the lowest rate I can find given my circumstances and the fact the majority of lenders work on income multiples. Im quite willing to change to a 5 year fixed deal as I cant see interest rates coming down so that it actualy affects me. I cant afford payments of more than £50 more than I am already paying a month.

JUST A NOTE TO THOSE UNFORTUNATE PEOPLE WITH NORTHERN ROCK. IF YOU TOOK THE £700 HELP WITH COSTS AT THE START OF YOUR MORTGAGE, PLEASE BE AWARE AS I WASNT THAT THIS HAS TO BE PAID BACK IF YOU REMORTGAGE BEFORE THE CHEQUE WAS RELEASED TO YOU.
I.E , MY CURRENT DEAL ENDS MAY 2ND,THEREFORE YOU MAKE THE ASSUMPTION THAT THIS FEE DOES NOT HAVE TO BE REPAID AS YOU ARE NOT REMORTGAGING BEFORE YOUR FIXED DEAL IS COMING TO AN END.THIS IS NOT THE CASE. MY CHEQUE WAS ISSUED TO ME SOME 5 WEEKS LATER THEREFORE THE EARLIEST I CAN REMORTGAGE WITHOUT PAYING THIS £700 BACK IS JUNE 14TH!! THEREFORE IF I DONT REMORTGAGE ON MAY 2ND SUPRISE OF SUPRISES, MY RATE JUMPS UP TO A WHOPPING 7.SOMETHING%, VARIABLE MEANING EXTRA £220 MONTH ON MY EXISTING PAYMENT. SO YOU EITHER REMORTGAGE AND PAY THE STUPID £700 BACK OR ADD IT TO YOUR ACCOUNT OR YOU WAIT TIL JUNE 14TH AND GET WHACKED WITH 2 PAYMENTS OF £220 MORE A MONTH. OBVIOUSLY IM GOING TO WAIT UNTIL JUNE 14TH,STILL SAVES MYSELF £260ISH BUT WHAT A SNEAKY DEAL.YOU CERTAINLY ARE NOT MADE AWARE OF THIS IN THE BEGINNING!!

WillowCat

babydoll123 wrote: »

My property is valued at £168350 and I need to borrow somewhere in the region of £124700. My salary is £125600.
I cant afford payments of more than £50 more than I am already paying a month.

Your salary is £125600 and you can't up your payment by more than £50 per month? :eek:

blackturtle

First time I have posted a message so sorry if its not quite right. My partner and I are struggling with two mortgages at the moment and are struggling to make ends meet. My partner has a mortgage with Northern Rock where she is tied in for the next three years by big penalties. We would rather sell her house but cannot afford the penalties. Has anyone heard of NR wavering the penalties? As NR are trying to shed their debt I was hoping it maybe a possibilty.
We are due to get married in a few months does anyone know what the situation would be if my future partner fell into arrears through this situation (could they seize my assets to make good on her debt?).

mitchaa

Surely a typo?

£125600 per year salary and an unnafordable £650-700pm mortgage. Looks like a 35yr mortgage term too

mitchaa

blackturtle wrote: »

My partner has a mortgage with Northern Rock where she is tied in for the next three years by big penalties. We would rather sell her house but cannot afford the penalties. Has anyone heard of NR wavering the penalties? As NR are trying to shed their debt I was hoping it maybe a possibilty

Almost as good as the questions....

Will my mortgage be wiped if northern rock go under:rotfl:

Pigs might fly No she has no chance of them wavering early exit fees.

dunstonh

Has anyone heard of NR wavering the penalties?

No.

As NR are trying to shed their debt I was hoping it maybe a possibilty.

That would lose them money and cost them fees (as it would break the terms with their investors which causes NR to pay a fee).

We are due to get married in a few months does anyone know what the situation would be if my future partner fell into arrears through this situation (could they seize my assets to make good on her debt?).

Even with the penalties you should perhaps consider selling up. THe fact that someone is on £125,600 and cannot afford a small increase of £50pm is very worrying and really does suggest you are living beyond your means. You may wish to post in the debt free wannabee section as I fear your problems may be best suited for that section rather than this one.

MY RATE JUMPS UP TO A WHOPPING 7.SOMETHING%

7. something is not whopping. That is closer to long term average. You should have been borrowing in the 90s with double digits the norm and fixed rates of 9.99% looking attractive.

beecher

dunstonh wrote: »

THe fact that someone is on £125,600 and cannot afford a small increase of £50pm is very worrying and really does suggest you are living beyond your means. You may wish to post in the debt free wannabee section as I fear your problems may be best suited for that section rather than this one.
.

It must be a typo as the OP mentions that most banks look at income multiples so hers must be high. Maybe £25,600?

Agre that 7 point something isn't 'wopping' - my first mortgage was fixed at 8.8% and I was advised that was low!

blackturtle

Thank you, it was wishful thinking on my part, back to the drawing board!