Advice sought by Northern Rock customer

loulou111

hello
I have 5 yr fixed rate (until 2012)mortgage with NR, Only took it out last year. I also have an unsecured loan which is also tied in with mortagage. I have received two letters from NR since it was nationlised both outlining certain changes ie that they are not lending money etc but basically saying that in most aspects it is 'business as usual and that they appreciate our loyalty and will try to repay it by continuing to offer excellent service' - should we therefore be worried that now there are reports that they plan to force people to sell or to get morgage elsewhere? The hubby seems to think they would not be able to do this but i think that you should never under estimate what banks will do to get money! We have never yet missed a payment but have only had it for one year - I am not sure what prospects we would have for going elsewhere as we do have the unsercured loan on our morgage which is for £28,000 and heard Martin say on TV this morning that banks are not wanting custom nowadays! does anyone have advice on what they would do in our circumstances, we both work - hubby full time but is CIS ltd company, although does work reg and takes home £700 per week and i work part time and earn £15,500 PA Paye - should we sit it out and not worry too much about what may never happen or start considering other options now just in case???

stuffcrash

banks can recall your mortgage at anytime.

BenL

In the T's & C's they could conceivably call in your debt but it is unlikely at the moment and probably going forwards.

NR have lots of mortgages coming to the end of the fixed rate period coming up this year and next.

These people will take the hit and either move mortgages to another lender (if they have the equity and the lender is happy to lend) or they will move onto the NR standard rate (7.5% ish)

This is how they propose to get the majority of the money back to the UK tax paper and the institutions they have borrowed so heavily from.

If the credit crunch continues to 2012 you may need to switch then.

I would say that you are ok for the next 4 years.

I guess the unsecured part of the deal is to get you to 100% and above.

This is the worrying part as you have little, no equity or negative in your home and with house prices on the decrease you may be heading for trouble

(The post started well but then took a downhill slant)

minimike2

stuffcrash wrote: »

banks can recall your mortgage at anytime.

Not a very constructive post in reply to someone who is clearly worried.



Yes its possible they *could* do this. The chances are low. NR will be trying to get people to leave and have been offering to waive the ERCs to customers if they do switch lender.

But to be hoenst you probably have a lower rate now than anything else you will be able to find elsewhere. I would just sit tight and try not to worry about it.

Pez2

If Northern Rock were to call in your debt then they'd be opening themselves up to the possibility of having to repossess your house, and they would have to be extraordinarily desperate to start repossessing from people who have had no problems making their payments. So as long as you can meet your payments I wouldn't worry too much.

Dan_Collins_2

I think you are ok. NR have not waiving ERC's. They are reducing mortgage debt as much as they can, they will not want to get rid of everything on the books just enough to keep the BOE happy! Dont worry your mortgage is with the Government. I think the FSA and BOE would be taken to task if they started calling in debt.

As a broker it is frustrating seeing Mr & Mrs public worried and possibly more due to the actions of the banks and lenders that run this country now days! I just wish I could call the BOE and ask for some dosh to get me through this rough period!

loulou111

Thank you all for your responses

minimike2

Dan - They are waiving ERCs I assure you.

I know of three people who they have allowed to redeem early without the ERC being chargeable.

Dan_Collins_2

minimike2 wrote: »

Dan - They are waiving ERCs I assure you.

I know of three people who they have allowed to redeem early without the ERC being chargeable.

Well I was told that it is not happening and dont be so silly for asking! Then again as with all lenders if the client asks they will probably back down!

How long did they have till the end of the deals?

minimike2

All were coming to an end within six months.

paulb369uk

Are NR also waiving their discharge fees does anyone know? They are asking for around £250 I am on SVR with no tie in.

Thanks