Hello. I'm new to this

NorthernRockerRemortgager

The name says it all!

I'm due to remortgage in October and apparently, Northern Rock are going to be offering bad deals because they want rid of the people it has lent money too. I'm even considering selling my house because i'm that frightened of the current turmoil the mortgage market is in.

Any thoughts or advice would be appreciated.

Thank you.

maninthestreet

Shop around for better deal???

homer_j_3

Firstly, if you are able to afford your mortgage and can find a better deal elsewhere then that is positive news.

A lot of NR customers cannot remortgage elsewhere because of needing high income multiples or because they are in negative equity (debt is more than property is worth). If you fit one of these categories then you are right to be concerned and I would look to see if you could afford the new rates with NR should the market still be the same in October (which is likely - if not worse in my opinion)

If you can afford the repayments then you have to remember that you are paying for your home not an investment. It may be cheaper to rent now or it may be worth considering selling but if you can afford to keep it going then you do so because its your home and by selling you are likely to lose out this way at the moment too.

There is grave concern for the housing market as a correction needs to happen and what we are losing focus on is that the interest rates still available are relatively cheap in comparison to where they have been in the past. It is just because credit has been free and easy that people are now struggling because they are over committed and with increases in food, energy, petrol etc - its going to be too much for some people.

dunstonh

I'm even considering selling my house because i'm that frightened of the current turmoil the mortgage market is in.

If you feel that way you should sell up and never ever buy a house again with a mortgage.

In a typical 25 year period you would expect a major issue whcih impacts on mortgages to occur twice. We are not seeing anything new here in the consequences of the negative event.

People who have got mortgages that they can afford (plus an approx increase of 50% of their current payment) have nothing to worry about. It means you have budgeted for the typical interest rate cycle.

If you are struggling now then expect it to get worse before it gets better so you may have to consider lifestyle changes or even selling up depending on how bad things are.

DRS1ONE

I am Aslo with NR. My situation is much worse.
I have a mortgage of 115000 plus a unsecured loan of 28000 both with NR.
it gets worse......
I also have other unsecured debt totaling 37000. Total debt including mortgage 180000.
My fixed rate mortgage ends Feb 09. Do I have a chance in keeping my house?
Total income between me and my wife is 47000 per annum.

Current property value 130000.

Will anyone give me a mortgage?

petermb_2

If you have a NR "Together" mortgage my advice is to get it checked out by any free mortgage audit companies out there, as issues have been identified within this mortgage product on loans taken out prior to 2006.

NorthernRockerRemortgager

Thanks for the advice guys. The balance on my mortgage is £85230. Monthly repayments are £563. Can afford it but if it jumps up, as it probably will then things will be tight.

Think i'll sell up but that aint gonna be easy either.

homer_j_3

petermb wrote: »

If you have a NR "Together" mortgage my advice is to get it checked out by any free mortgage audit companies out there, as issues have been identified within this mortgage product on loans taken out prior to 2006.

So what is the potential recourse on these types of mortgaged Petermb? Are 2006 mortgages onwards correct then?

petermb_2

homer_j wrote: »

So what is the potential recourse on these types of mortgaged Petermb? Are 2006 mortgages onwards correct then?

It would appear that prior to 2006 the loan portion of the "mortgage" is faulty. As this is normally a regulated consumer credit agreement (under £25,000) The agreements we have seen fail to comply with various aspects of that act.

The agreements we have seen post April 2006 appear to have been corrected and now comply.

The outcome to such issues is unenforceability and all the implications that go with it.

lynnexxxo

NorthernRockerRemortgager wrote: »

Thanks for the advice guys. The balance on my mortgage is £85230. Monthly repayments are £563. Can afford it but if it jumps up, as it probably will then things will be tight.

Think i'll sell up but that aint gonna be easy either.

Are you sure its a good idea to sell? Looking around locally I see a whole lot of for sale boards and few sold. If you must sell you'd be looking at accepting quite a low offer.

What is the equity in your property? If you have a reasonable income and a some equity then a 85k mortgage is pretty affordable.

If you sell and rent, can you get a similar house in your area for rent of £560 per month ? plus a deposit and various letting agency fees? Do you want the uncertainity of 6 month leases - potentially having to move ever six months?

NorthernRockerRemortgager

Some good questions you have put to me there Lynne. I bought the house for 87K in 2005 and it's now been valued at 110K. No negative equity here.