Two kinds of mortgages ....

wymondham

Is it me or do there tend to be two kinds of people - those who have Northern Rock mortgages, and those that don't ?

Anyone know why NR queries seem so common all of a sudden?

minimike2

Because they are not offering any (worhtwile) new deals to thier customers coming onto SVR, meaning they are effectively forced into moving thier mortgage elsewhere, but often find it difficult as NR used to lend at high income multiples and high LTVs. often up to 125% of the property value.

minimike2

Because whilst they are asset rich, they are cash poor and need the money to repay the treasury the bail-out money they granted them.

wymondham

sounds like hard times ahead for NR customers as they search for replacements for their deals ......

minimike2

Trust me, its a nightmare for some....

Some are ok, but I have a couple of clients who may be forced into taking thier rediculously high offers of new "deals" at the moment.

I would say 30% of clients I see at the moment are existing NR customers.

wymondham

This sounds like a timebomb, especially with those on the 125% deal that NR did - read on another thread the numbers that could be effected with this and it's not a pretty sight!!

barrymoney

I feel quite angry that the government portray the 'solution' to the NR crisis as being a great deal for all. I'd like to see Gordon Brown explain to NR customers how theres no boom and bust for them. Despite all the talk and billions of pounds there seems to have been little consideration for the NR customers needing to get at least vaguely competitive deals.
(I'm not with NR, but only by pure chance really, I was tempted by their rates a couple of years back).