Northern Rock Evacuees Group

Gids

As a person about to fall off the Northern Rock Mortgage Cliff it strikes me that there are many people in a similar position.
Remembering that there's strength in numbers I wondered if anybody else, in a similar position would like to form a group that would perhaps have more ability to negotiate a sensible rate from NR or another lender.
Personally, I think that if say a thousand people got together there's a reasonable chance we could get better rates than we would as individuals.
Perhaps MoneySavingExpert would like to host the group!?

homer_j_3

As daft as it sounds, I thought that something like this would have happened by now.

There are a couple of issues that you could be campaigning against, 1 - all those people that are not being offered a decent rate and 2 all those that have no where to go due to high LTV (which may not be restricted just to NR customers).

The reality is though on the topic of No 1. The rates are so uncompetitive to help pay back the tax payer so for anybody to sign a petition or join the group, its almost like saying that they are happy for the government to not pay the taxpayer back.

With No 2 - I would support any campaign for a remortgage product only for those people already with a mortgage to be able to continue their mortgage in a fairly competitive manner. This comment isn't to start a debate whether the products were right or wrong because it took 2 or even 3 to tango to get there (the lender, the broker, the customer) but to recognise that those people that have found their debt affordable and have made payments on time, should be given an option.

I have just realised that this is my 2500 post....

Gids

Congratulations on your 2,500 post - that's a lot!
'The rates are so uncompetitive to help pay back the tax payer so for anybody to sign a petition or join the group, its almost like saying that they are happy for the government to not pay the taxpayer back.'
We're taxpayers as well! So we get to pay twice?
A loan shark lends you money without asking you if you want it and then wants you to pay it back at unreasonable rates... is exactly what Mr Brown has done.
Whilst the rates are so uncompetitive we have no choice but to bail out. I went with NR because it's based in the North and supports jobs there; I'd still like to.
Is it stupid of me to believe that whilst NR is being run by the government it should have to offer interest rates that are an average of the top 25/50 lenders?
That way it couldn't be accused of being unfair to it's customers or other lenders.
We're only looking for a fair deal...

homer_j_3

Maybe I was a bit shallow with my answer.

The rates are uncomeptitive because the money that is funding the lending is being borrowed from the lender of the last resort and as such is more expensive to borrow at.

I do understand that the borrower is a tax payer (and I have a mortgage with them and my choice was based on their flexibility) so I have great sympathy for what you are saying but as a lender, I see the greater social responsibility that they have.

If you want to campaign against it, I am all for people having their say but you need to understand the reasoning behind what they are doing rather than the effect that it is having on a minority of people (considering the millions of tax payers out there). I think that you need to remortgage if you can but if you cannot then I can see why there is a feeling of gun to head.

DaiJoA

I;'d definitely support anything like this, especially anything that made NR reduce or waive the ERC for people giving them what they want, i.e. free of another customer. Its the only way their customers are going to have half a chance of recovering from all this.

Gids

Hi DaiJoA
Great, I think it's mainly a case of getting as many of us together so that we have some collective clout.
On our own we know we won't get anywhere but if there were a hundred of us we'll have a chance of being listened to...

homer_j_3

Why would they waive the ERC when they have you paying. You are good for a portfolio of mortgages that can be sold?

If the mortgage is repaid then so are the people that NR borrowed from and the ERC will be part of the pricing of the product and therefore part of the profit that is needed to repay the tax payer. If they don't make this profit then the taxpayer is worse off too.

Its another situation of people using the "I am not responsible" card. Everyone of us borrowers at NR took their money and as soon as it hits the fan, you expect that NR should just let people walk away from this. You are every bit responsible for the debt you have.

I am sorry if this comes across harsh but you should see your commitment out and look at what YOU can do to move on and get yourself out of your mess rather than rely on a petition or group to get the lender to roll over and take pity. Especially when it has no substance.

Its not fair that all those non NR borrowers are holding the bank up and it should be the time where everybody stood up to be counted and have the foresight to work out what they need to do to ensure that they stand the best chance of surviving this correction.