Northern Rock - Nightmare

chappers

owitemisermusa wrote: »

I'm sorry but the OP asked for advice only, nothing else. Let's get with the program.

I can only suggest scouring the market for other mortgage deals - provded the terms are reasonable. I'm sure there's a lender out there for you.

Don't be too sure.

SWMBO

well, I'm going to stick my neck out and wish the OP good luck.

"I would say it would be best to try and sell your house and rent now... I know it sounds extreme but this is the best way to avoid more debt.... if you wait for houses to drop too much you will be in more negative equity... you wont be able to afford the mortgage payments and would be forced into a repossession." I'm afraid I agree with this and there will be a point where you have to decide between animals and humans...you wouldn't be the first on these forums. If you can cut back to the bone you may be spared that choice.

I wish you well but keep positive.

Tillydot

Thanks Edinvestor. I think you are spot on. I will choose to ignore the doom and gloom merchants, some who I know are probably right and talking sense, some who seem to be rather enjoying the whole nasty mess some people are in. As someone else has said I asked for advice not a lecture on my financial situation.

beecher

Tillydot wrote: »

Thanks Edinvestor. I think you are spot on. I will choose to ignore the doom and gloom merchants, some who I know are probably right and talking sense, some who seem to be rather enjoying the whole nasty mess some people are in. As someone else has said I asked for advice not a lecture on my financial situation, or if I should choose between humans and animals.

That's fair enough, but people can only give the advice they think is closest to the truth. I don't think anyone is enjoying the mess people are in at all, and I do seriously advise you to take a close look at your finances and see if you really can afford to stay on the SVR long term. If you post on the Debt forum people who've been in similar situations will be able to tell you if the course of action is viable or not - what you've posted so far suggests that it is not because of the fact you've had to use your equity to survive before your mortgage payments doubled.

Best of luck - ignoring the 'doom and gloom' merchants might not be the best course of action though.

tonyhamm

According to the recent Channel 4 news. They are doing this because they have to pay back us taxpayers for the massive 29 billion bail out of the rock by a certain timeframe, and also
http://www.channel4.com/news/articles/world/eu+launches+northern+rock+inquiry/1921747
because they do not want to distort the mortgage market by competiting head on with other lenders when they are funded by taxpayers.

from 4.95 to 7.25
http://www.channel4.com/news/articles/business_money/was+rock+state+aid+anticompetitive/1924257

Lenders now have higher funding fees to pay as they cannot offload mortgages as AAA rated good as gold bonds, that 'model' is dead, so they have to keep the loans on thier books, and that means tighter lending till normal ratios come back.

ajaxgeezer

Unfortunately the doom and gloom is here for a little while yet. It's fine to ignore it - that's your prerogative of course - but it's real and it's here. The only way to ignore it is to pay the SVR and stay in the house you have at the moment unless a broker comes forward with a plan, which I think is unlikely.

Prices will slide down for a while because there is so little new money coming into the market. Anything - be it a potato or a house - is only worth as much as people will or can pay for it. If they can't raise the funds, the price will drop and that's what we're in the middle (or maybe only even the start) of now.

No real need to panic though, if you are 'sort of' managing now. There may be ways of raising extra to increase the income rather than decrease the debt. Look around the boards to find inspiration - I think you will be paying that SVR for a while though.

Good luck with it all, and thanks for the sterling work with the rescues.

ajaxgeezer

tonyhamm wrote: »

Lenders now have higher funding fees to pay as they cannot offload mortgages as AAA rated good as gold bonds, that 'model' is dead, so they have to keep the loans on thier books, and that means tighter lending till normal ratios come back.

....I don't think recent ratios have been normal to be honest, I think they've been too high. We're probably closer to appropriate prudence now than we were a year ago.

silvercar

Go and see a broker, there are some deals out there with no arrangement fees. Without even knowing your location or type of house people are posting that your house value will fall, it might it might not. The important thing is to now find an affordable deal. As you are self-employed with a high LTV it may not be the best deal on the market but it should be cheaper than the deal you have now and it should offer you some security over the next few years.

The only shame is the recent mortgage arrear. In mortgage search terms it would have been better to be late making another payment than to have a recent mortgage arrear, but thats histroy now.

HelpWhereIcan

Most lenders will allow you to add arrangement fees to the loan so I am surprised that is an issue. Hopefully your broker has checked local comparable information to see if the valuation can be appealed.

Rather than remortgage at the moment it may pay to do some 'damage limitation'.

If your mortgage is currently on repayment you may want to consider asking Northern Rock to allow you to switch it to interest only in order to help keep it affordable while you 'ride out the storm'.

This will allow you to get back on your feet and overpay as and when affordable to mitigate the effect of putting your mortgage on interest only.

You will then have the time to sell (or even decide whether you want/need to).

Being self employed does not dictate that you have to have an 85% (self cert :rolleyes: ) mortgage.

Post the value of the property (as given by the surveyor), the size of your mortgage and what income you have and someone may be able to point you in the direction of a lender that will do more than 85%.

What about using whatever income your daughter has to increase the amount you can borrow?

Your bigger problem is the fact that you have missed a mortgage payment. Get a copy of your credit file to see how Northern Rock have recorded it (they do not always record it as arrears).

If you have had to constantly remortgage to stay afloat it may be that you have to accept selling may be the best long term option.

have you checked to see if you are entitled to any further income from the state? Can you charge your daughter more for living with you?

What about biting the bullet and accepting that you may be better off in an employed position rather than the risk that comes with self employment?

Now is the time to ensure that, if you have not considered them already, you look into all of these things - unpalatable as someof them may be.

Good Luck

Hope this helps

Commonsensesearcher

Tillydot wrote: »

Thanks Edinvestor. I think you are spot on. I will choose to ignore the doom and gloom merchants, some who I know are probably right and talking sense, some who seem to be rather enjoying the whole nasty mess some people are in. As someone else has said I asked for advice not a lecture on my financial situation, or if I should choose between humans and animals.

You came asking for advice on what looks like a fairly nasty situation you are in. You have that advice and some of it is a positive way of getting out of the situation. Unfortunately it will also mean a fairly substantial lifestyle change in the short term. However, seeing as your present lifestyle doesn't sound very sustainable judging from the financial position you have described then it may well be that you need to seriously consider what is being suggested. It may sound like doom and gloom but there is no easy, quick fix to the problems that you, and many thousands of others are beginning to face. I'd call it reality rather than doom and gloom but if you'd prefer to bury your head in the sand then that's your choice...