Northern Rock Exit Fees

GSCSwad

I have put my house up for sale, and have begun researching the best mortgage deals about.

My current mortgage is with Northern Rock. I have spoken to them about increasing my loan. They tell me that they cannot give me the deal that I want because of their current circumstances. Because of this I have no choice but to seek a mortgage elsewhere. This now means that I will be forced to pay a £3k penalty for leaving NR. This in turn reduces the amount I can get with anyone else.

Is there anything I can do to avoid this? It seems a little unfair that I have no other option because of the mess they are in but to go elsewhere, If I was seeking a better deal, then fair enough, but loosing £3k on a house that has made £20k over the past three years quick frankly p****s me off.

Has anyone had the same problem?

_Andy_

Unfortunately there is nothing you can do.

beecher

Wouldn't you have to pay the penalty even if you were able to stay with Northern Rock? My understanding was that if you move home you need a new mortgage product and aren't guaranteed to be able to port the existing mortgage with you. That's why taking out long term fixed rates is always a gamble, as you may want to move within that time frame and will have to pay the Early Repayment Charge.

GSCSwad

I dont think so. If I stay with them, the penalty will be wavered. Or so I thought.

I'm about two months at least of getting another mortgage. Are NR's circumstances likely to change in that time?

I'm feeling quite stressed at the minute about the whole moving situation. I thik first time buyers are struggling to get a mortgage and landlords are struggling to raise their deposit. How long is this likely to last?

beecher

GSCSwad wrote: »

I dont think so. If I stay with them, the penalty will be wavered. Or so I thought.

I've always had to get a new product when moving house - I was allowed to move 1 month before it ran out last time, but that wasn't automatic. Though I think there is the ability to keep your existing mortgage, and get the additional money on SVR - expensive option though. I may of course be totally wrong - that's just what I was told by my bank.

I think we're seeing a shift in the housing market, and that much of it is longterm. Northern Rock are ditching as much of their mortgage portfolio as possible, and that isn't going to change.

When does your Early Repayment Charge run out? Is it worthwhile waiting until it does run out before moving?

GSCSwad

Another two years.

It isnt really an opion staying where we are now. The house is too small, and we have a baby on the way.

If I have to pay the penalty I will, I just wondered if there was anyway of avoiding it.

Money house is a joke now. The HIPs pack is a waste of money and the fees are ridiculous. Why, despite having all the searches done three years ago, do they need to be done again? and why do they take so long?

geoffken

Perhaps because things have changed in the area.
In the new house you are buying would you be happy with a 3 year old search.
If not why do you expect your buyers to be???

GSCSwad

Yeah I would.

What could have possibly changed to the enviroment around my house in three years? And I haven't seen anyone dig anymore mind shafts around our street.

Some searches may be valid but not all.

Krisp_3

Hi there

is NR declining your request purely because you would like a larger loan, or because you would like a larger loan and a better rate?

If you don't want to increase your loan a lot of mortgages are portable to the new property (but check the T&Cs of your current product) even if they are fixed rate. As long as the underlying security is worth the loan, then the mortgage company should be fine.

As for the searches etc - well, I for one wouldn't want to rely on ones that are 3 years old. You NEVER know what is giong on in your area (not just street!) that may affect a purchaser's willingness to buy. The local council could be in the throes of agreeing a power plant/industrial area etc....

I got a HIP through the estate agent, who referred to me to a specific solicitor, at no additional cost to the standard fees. The solicitors have been fine. The estate agents have been fab. But then, that is probably more by luck than anything else! I'm not saying I love HIPs, though - just saying it's possible to get deals and not have to pay out for the pack separately...

Good luck!