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Title: Anyone with a Northern Rock Mortgage... Post by: @MacPhlea on Thursday, September 22, 2011, 12:10:09 Just got a letter from them telling me that they are relinquishing the get out clause fee on my NRAM 15 year fixed rate mortgage (apparently to recoup some of the cash to repay the government) which now means I am free to go get a cheaper fixed rate mortgage without paying a huge release fee during the fixed rate period... I assume I am not the only one who got this letter?
...just secured a new 3 year fixed rate mortgage 2% cheaper - whoop! Title: Re: Anyone with a Northern Rock Mortgage... Post by: Ginginho on Thursday, September 22, 2011, 12:21:48 I'm with Northern Rock, but haven't seen the post today.
We had a 5 year fixed period which ended last year and our new terms reduced our mortgage by £100 a month. Title: Re: Anyone with a Northern Rock Mortgage... Post by: Samdy Gray on Thursday, September 22, 2011, 12:35:51 I believe they've been doing it gradually over the last few months.
If it were me I'd be looking at a tracker for the next couple of years. There are some very good 2 year trackers about at the moment. Title: Re: Anyone with a Northern Rock Mortgage... Post by: @MacPhlea on Thursday, September 22, 2011, 12:38:56 I believe they've been doing it gradually over the last few months. If it were me I'd be looking at a tracker for the next couple of years. There are some very good 2 year trackers about at the moment. Thought about that but am prepared to sacrifice the small saving for security of knowing what I'll pay for the next three years. Title: Re: Anyone with a Northern Rock Mortgage... Post by: Ginginho on Thursday, September 22, 2011, 12:40:56 We're gonna look at moving early next year, so will weigh up our options then.
Title: Re: Anyone with a Northern Rock Mortgage... Post by: Samdy Gray on Thursday, September 22, 2011, 12:47:15 Thought about that but am prepared to sacrifice the small saving for security of knowing what I'll pay for the next three years. Absolutely. That's probably the safest bet at the moment. The short term outlook is that rates should remain low for another couple of years, but nobody can say for certain what's actually going to happen. Title: Re: Anyone with a Northern Rock Mortgage... Post by: Bewster on Thursday, September 22, 2011, 12:53:40 Absolutely. That's probably the safest bet at the moment. The short term outlook is that rates should remain low for another couple of years, but nobody can say for certain what's actually going to happen. Maybe get one with a switch and fix option then ? Title: Re: Anyone with a Northern Rock Mortgage... Post by: jimmy_onions on Thursday, September 22, 2011, 13:02:01 Off topic slighty..apologies for that...but vaguely financial related...
watched grand designs last night...question for y'all. If your man has received in the region of 1.2 million from bank loans to build this house..how the fook is he expected to pay that back, or is it the case the banks consider the house as an asset? Two other points. Kevin Macloed is a prick...spouts way too much bullshit, and overly critical. McFly...go for a 3 year fixed..there's a lot to be said for not having to worry about what rates are doing. Regards Jimmy_low_risk_low_gains_onions. Title: Re: Anyone with a Northern Rock Mortgage... Post by: @MacPhlea on Thursday, September 22, 2011, 13:07:08 Off topic slighty..apologies for that...but vaguely financial related... watched grand designs last night...question for y'all. If your man has received in the region of 1.2 million from bank loans to build this house..how the fook is he expected to pay that back, or is it the case the banks consider the house as an asset? Two other points. Kevin Macloed is a prick...spouts way too much bullshit, and overly critical. McFly...go for a 3 year fixed..there's a lot to be said for not having to worry about what rates are doing. Regards Jimmy_low_risk_low_gains_onions. He must be earning shitloads or dealing drugs McCloud is a knob jockey Safe & steady, fixed outgoings make me happy, thats why I don't have kids... Title: Re: Anyone with a Northern Rock Mortgage... Post by: Samdy Gray on Thursday, September 22, 2011, 13:29:29 Maybe get one with a switch and fix option then ? An option, yes. Although usually not the most competitive rates. Title: Re: Anyone with a Northern Rock Mortgage... Post by: Bewster on Thursday, September 22, 2011, 13:31:47 An option, yes. Although usually not the most competitive rates. Samdy - with your studying I will take your word for it, I've been out of the mortgage market for too long. Title: Re: Anyone with a Northern Rock Mortgage... Post by: Samdy Gray on Thursday, September 22, 2011, 13:33:12 Obviously just my opinion, not to be taken as advice :)
Title: Re: Anyone with a Northern Rock Mortgage... Post by: tans on Thursday, September 22, 2011, 13:35:21 I saw Grand designs last night.
That house looked fucking stupid ampngst the rest of the estate. As you say, how is he going to manage to pay it back, he mustve been retired anyway?! Title: Re: Anyone with a Northern Rock Mortgage... Post by: Bewster on Thursday, September 22, 2011, 13:35:44 Obviously just my opinion, not to be taken as advice :) investments can down as well as up :) Title: Re: Anyone with a Northern Rock Mortgage... Post by: jimmy_onions on Thursday, September 22, 2011, 13:40:19 I saw Grand designs last night. That house looked fucking stupid ampngst the rest of the estate. As you say, how is he going to manage to pay it back, he mustve been retired anyway?! exactly...Its all very well having the house of your dreams but is it really worth it if you havent got two pennies to rub together until the day you die.. there must be more to it than that.... Title: Re: Anyone with a Northern Rock Mortgage... Post by: Batch on Thursday, September 22, 2011, 14:47:21 Obviously just my opinion, not to be taken as advice :) Are you a mortgage advisor?! Title: Re: Anyone with a Northern Rock Mortgage... Post by: Samdy Gray on Thursday, September 22, 2011, 14:51:15 No, hence the "not to be taken as advice bit". Don't fancy getting reprimanded by the FSA before I've even started :)
Will be qualified to be soon though (along with other areas of financial advice). Title: Re: Anyone with a Northern Rock Mortgage... Post by: Batch on Thursday, September 22, 2011, 15:22:07 No, hence the "not to be taken as advice bit". Don't fancy getting reprimanded by the FSA before I've even started :) What I meant was I'm sure mortgage advisor reports have similar disclaimers just in case they advise badly. Title: Re: Anyone with a Northern Rock Mortgage... Post by: Samdy Gray on Thursday, September 22, 2011, 17:16:37 If a mortgage adviser gave you a report that said "not to be taken as advice" I'd be extremely worried.
Title: Re: Anyone with a Northern Rock Mortgage... Post by: Only Me on Thursday, September 22, 2011, 20:44:23 What I meant was I'm sure mortgage advisor reports have similar disclaimers just in case they advise badly. Always research the market. A mortgage advisor will give you the best advice, as long as it gives him the best commission. Beware !!!Title: Re: Anyone with a Northern Rock Mortgage... Post by: Samdy Gray on Thursday, September 22, 2011, 22:02:58 Typical cynical view of the profession. We are not all rogues. They just ruin it for the rest of us.
Title: Re: Anyone with a Northern Rock Mortgage... Post by: walrus on Friday, September 23, 2011, 12:18:28 Do 100% mortgages exist? If not, why not?
I live in a part buy/part rent property, but currently only rent. Desperate to buy but very difficult to save a deposit to start chunking off a mortgage. Any options, other than hold my work to ransom for a pay-rise? Title: Re: Anyone with a Northern Rock Mortgage... Post by: Batch on Friday, September 23, 2011, 12:24:46 Do 100% mortgages exist? If not, why not? Banks seem a little reticent to be stitched up with large debts people can't pay. Can't imagine why ;) Title: Re: Anyone with a Northern Rock Mortgage... Post by: Samdy Gray on Friday, September 23, 2011, 12:25:11 No, because they are such high risk to lenders. Northern Rock were the biggest provider of 100% mortgages and look what happened to them.
If you have never had a mortgage before then there are schemes designed to help first time buyers. Title: Re: Anyone with a Northern Rock Mortgage... Post by: @MacPhlea on Friday, September 23, 2011, 12:28:25 Do 100% mortgages exist? If not, why not? I live in a part buy/part rent property, but currently only rent. Desperate to buy but very difficult to save a deposit to start chunking off a mortgage. Any options, other than hold my work to ransom for a pay-rise? I heard one announced on the radio the other day but the catch was that the buyers parents had to underwrite it with a charge put on their property as well... Don't think I'd be too happy if I lost my house as a result of my kid not paying their mortgage... Title: Re: Anyone with a Northern Rock Mortgage... Post by: nevillew on Friday, September 23, 2011, 12:33:03 100% mortgages are fine (theoretically if not morally) in times of property value increases, because if the borrowers overstretch themselves and default, the mortgage company will recover its loan.
However this becomes a big risk in a) dodgy employment conditions where chance of default is higher, and b) falling house values mean repossession will not yield enough to cover the loan I believe in some cases prior to the 2008 crisis, Northern Rock were lending 125% (may be wrong) Title: Re: Anyone with a Northern Rock Mortgage... Post by: Bewster on Friday, September 23, 2011, 12:38:07 If you have never had a mortgage before then there are schemes designed to help first time buyers. Yes - pretend you are from eastern europe. Title: Re: Anyone with a Northern Rock Mortgage... Post by: Samdy Gray on Friday, September 23, 2011, 12:41:53 I believe in some cases prior to the 2008 crisis, Northern Rock were lending 125% (may be wrong) You are correct. They were giving 100% mortgages and then up to a further 25% as a secured loan. Title: Re: Anyone with a Northern Rock Mortgage... Post by: jayohaitchenn on Friday, September 23, 2011, 13:09:04 I got 110% from NR. Would never advise it to anyone.
Title: Re: Anyone with a Northern Rock Mortgage... Post by: walrus on Friday, September 23, 2011, 13:29:51 What schemes? It seems to me other than part-rent/part-buy there's very little out there for first time buyers. The market suits the very poor, those up the duff and the very rich. Anyone in the middle is a bit fucked....
Title: Re: Anyone with a Northern Rock Mortgage... Post by: Luci on Friday, September 23, 2011, 13:46:38 What schemes? It seems to me other than part-rent/part-buy there's very little out there for first time buyers. The market suits the very poor, those up the duff and the very rich. Anyone in the middle is a bit fucked.... The government scheme for starters? http://www.firstbuyscheme.org.uk/ Also, developers have their own schemes too so its worth enquiring with new developments directly. Thats what I did with mine. Title: Re: Anyone with a Northern Rock Mortgage... Post by: Samdy Gray on Friday, September 23, 2011, 14:46:55 What schemes? It seems to me other than part-rent/part-buy there's very little out there for first time buyers. The market suits the very poor, those up the duff and the very rich. Anyone in the middle is a bit fucked.... Have a read about shared equity/appreciation. Probably the best option given you don't want to part rent. Title: Re: Anyone with a Northern Rock Mortgage... Post by: Phil_S on Friday, September 23, 2011, 15:33:32 You are correct. They were giving 100% mortgages and then up to a further 25% as a secured loan. Incorrect. They were lending at 95% with an additional 30% max or £30,000 as an UNSECURED loan. The unsecured lona was that the same rate for as long as you kept the mortgage, but if you redeemed the mortgage the unsecured rate shot up. In point of fact I believe the default rate with Northern Rock was & is no greater than with any other lender. The problem was caused not in the UK so much as Uk banks buying up mortgage books in the US which contained loads of toxic debt. The mortgage industry in the UK is very heavily regulated now. For example you would not be able to recommend a mortgage based on the commision rate to the advisor & get awat with it. (TVirually every lender pays the same any way.Title: Re: Anyone with a Northern Rock Mortgage... Post by: Phil_S on Friday, September 23, 2011, 15:41:47 The government scheme for starters? http://www.firstbuyscheme.org.uk/ Also, developers have their own schemes too so its worth enquiring with new developments directly. Thats what I did with mine. The problem is that the FSA insist that lenders have much more in reserve if they lend at higher loan to values. I believe that if they lend to one peron with a 5 or 10% deposit they have to hold the same reserves as they would need to lend to 6 people with a 25% deposit. Also the rates are penal with anything less than 15% deposit. The Homebuy scheme is ok, but is only available on limited numbers of new build properties. There are two options one being shared equity (where you buy part & have an interest free loan for the rest & the other being shared owbership where you buy part & rent part. Title: Re: Anyone with a Northern Rock Mortgage... Post by: Samdy Gray on Friday, September 23, 2011, 17:41:09 Incorrect. They were lending at 95% with an additional 30% max or £30,000 as an UNSECURED loan. Meh, close enough :) |