Financial Blackmail - Northern Rock

homer_j_3

I would just accept that NR were doing rates around the 5% mark 18 months ago on average and at 7.59% for SVR it would put a 50% increase on the mortgage payment on an interest only mortgage

So if the Interest only amount was £1000 per month, the SVR could plausibly add £500 to the monthly cost.

On a repayment, it would be less because you are paying capital back.

However, as Dunston quite correctly states, the fact that there would be such a jump would have been disclosed in the offer and in illustrations prior to the offer.

This claim of financial blackmail is frustration misplaced in my opinion and because the OP has not read or understood their mortgage then they are now getting angry and looking to find blame elsewhere. I am sure though that when they return and provide the information required, we can help bring clarity to their situation.

Dan_Collins_2

Well you cant be that worried, we are waiting to help you and you have not given us anymore clues??

maninthestreet

Yes, come on Greenwood1, what are the details of your current mortgage deal - the percentage interest rate , the amount of the mortgage, and the full details of the any early repayment charges?

HelpWhereIcan

In October 2006 Northern Rock had 3 18 mth fixed rates ending 1/5/08.

1. 4.69% fixed up to 80% LTV
2. 4.79% fixed up to 90% LTV
3. 5.09% fixed up to 95% LTV

3% early repayment charge so £5600 should equate to a current loan of approx 186,666.

None of them had an extended overhang so the OP should be able to remortgage after 1/5/08 and have no erc to pay. They may have to pay back any Help With Costs benefi they received, but that should be no more than £700 and I have heard rumours that NR are now waiving this (don't quote me though).

Their SVR at the time was 6.84% - current SVR is 7.59% so only 0.75% higher. On a loan of £186,666 over 25 years that equates to an increase of £90pm.

The mortgage illustration at the time would have shown the payment based on 6.84% so the OP should have been aware of the potential of a large increase from the 4.69% to 6.84%.

I cannot get the payments to correlate to what the OP is telling us about their increase.

Even on interest only £186,666 is 729.55 @ 4.69 and 1240.83 @ 7.59% (an increase of 511.28.

I would suspect that things are not as black as the OP believes. Post some more as already asked and someone may be able to put your mind to rest.

Hope this helps

maninthestreet

HelpWhereIcan wrote: »

In October 2006 Northern Rock had 3 18 mth fixed rates ending 1/5/08.

1. 4.69% fixed up to 80% LTV
2. 4.79% fixed up to 90% LTV
3. 5.09% fixed up to 95% LTV

3% early repayment charge so £5600 should equate to a current loan of approx 186,666.

None of them had an extended overhang so the OP should be able to remortgage after 1/5/08 and have no erc to pay. They may have to pay back any Help With Costs benefi they received, but that should be no more than £700 and I have heard rumours that NR are now waiving this (don't quote me though).

Their SVR at the time was 6.84% - current SVR is 7.59% so only 0.75% higher. On a loan of £186,666 over 25 years that equates to an increase of £90pm.

The mortgage illustration at the time would have shown the payment based on 6.84% so the OP should have been aware of the potential of a large increase from the 4.69% to 6.84%.

I cannot get the payments to correlate to what the OP is telling us about their increase.

Even on interest only £186,666 is 729.55 @ 4.69 and 1240.83 @ 7.59% (an increase of 511.28.

I would suspect that things are not as black as the OP believes. Post some more as already asked and someone may be able to put your mind to rest.

Hope this helps

The OP stated that his repayments were increasing by £512 per month, so your figure of £511.28 sounds accurate.

HelpWhereIcan

maninthestreet wrote: »

The OP stated that his repayments were increasing by £512 per month, so your figure of £511.28 sounds accurate.

Agreed, but that does not tie up with their expectation that they will have to pay an erc of £5600 to leave which was their main complaint.

I perhaps would have been clearer posting something like

"I cannot get the payments to correlate exactly to what the OP is telling us about their increase, but on interest only £186,666 is 729.55 @ 4.69 and 1240.83 @ 7.59% (an increase of 511.28 which would seem to match)."

I was trying to make the point that I think I have identified the deal and that if the OP posts to confirm that they are on that 4.69% deal they will not have the erc to pay.

Back to school for me to learn English then.

Dan_Collins_2

Well you to have put a bit of thinking in to this one, I just hope the OP comes along soon and says thanks!

Conrad

Gorgeous_George wrote: »

Sounds like you were mis-advised by some incompetent buffoon who was more interested in churning mortgages than providing sensible, semi-professional advice.


GG

She says she renewed the deal with the lender direct.

I guess your sig says it all - you seem to have an inability to rationalise the facts. As the psychologists say "the prover proves what the thinker thinks no matter what the facts say"

I bet you read the Daily Mail, and think everyones out to get you:eek:

Noz

Off topic: I miss your old signature Conrad

Conrad

Advisers - N Rock did have 18 m low fixed rates with an extended tie - in after the low rate expired. I think this is what the OP means.