Northern Rock End of Mortgaged Deal (Merged Threads)

A question about : Northern Rock End of Mortgaged Deal (Merged Threads)

I'm currently on a 5.99% capped rate with Northern Rock, due to expire in Jan 2009.

I know they don't want the mortgage business right now as their rates are incredibly uncompetative. What will happen now that the bank has been nationalised?

I was single and working full time when I took the mortgage out, so the loan and the house deeds are in my sole name. I've since married and had a baby, and I'm only working a few hours a week now so I don't have the income multiples to move elsewhere. Husband doesn't want to be on the mortgage. House is my asset from before we met, so he refuses to go on the deeds/mortgage.

I am worried what will happen when my rate runs out in January? Can anyone put my mind at rest?

Best answers:

• You've got nearly a year before you will know what is on offer from Northern Rock - the news has just said that they're not looking to run down the business, so I would say don't worry too much about it yet.
  Talk to your OH about why he doesn't want to be on the deeds/mortgage - if you talk about it now before it's decision time there'll be less pressure.
• right on.
  if your work/life situation stays the same he will have to be on the mortgage in 2009. why is he so anti mortgage?
• I'm with NR too but my fixed rate has already run out.
  I want to move as the interest rate is not competitive (none of the recent interest rate drops have been passed on) but due to personal circs I am not in a strong position at the moment financially.
  This will change for me in the next few months (got an inheritance coming) but for now I am stuck and not happy but what can I do.
  By the time yours runs out we will know a lot more (hopefully!). Perhaps mortagages will be sold on to other companies who can offer a better deal?
  I dont know what can be done under this nationalisation but I guess its a wait and see sort of moment.
• Hi
  Received our letter today from NR saying our mortgage repayments on 1.6.08 will go up to Ј1048 on our Interest only together mortgage! our current payment is Ј798.
  Ideally we would like to get back onto repayment but no way can afford it with NR! However, if we move our mortgage but leave the 'together part' with NR we will have to increase our payments on the usecured part as we are no longer with NR, is any of this making sense?
  I am also worried about our credit rating, I am currently reducing my overdraft by Ј100 a month so by September i will have a Ј300 overdraft limit, we have no credit cards any more as we paid them all off. A loan which finishes in July and one which finishes in October next year, we have never missed a payment on any of them.
  Do you think we should shop around for a better deal and if so are Charcol worth going to? Other option is we sell the house, pay Ј16k off the unsecured part with the profit from the house sale, move into rented and wait for the market to settle?
  Any ideas anyone?
  Thanks.
• If you remortgage you will have to pay off the secured loan as well. Check the other posts about NR. You will understand what is going on and what we advised others in similar situ as you.
• Its difficult to say what is best without knowing the ins and outs of your finances but you have ages yet, your deal doesnt go up until june this year, sit and watch what happens with NR and the market as a whole until end of March
  MM
• Agree with MortgageMamma i think the next few months will see NR becoming a bit more competitive again, in order to attract a few more customers.
• Hi
  the 25% bit of the NR Together mortgage is unsecured not secured, have checked all my statments and are therefore not required to pay it off with the mortgage. Am reticent to stay sitting with them as I believe they are trying to recoup their losses through pricing themselves out of the mortgage market. But will give it a couple of months.
• Sandler has already said that it not be run as a closed book and run down. It will be restructured and almost certainly downscaled but the intention is to sell it as a going concern.
  To say they dont want new customers is plain daft. That is not the case. However, they are less likely to take on unprofitable business and buy market share which is what they were doing before.
• Sorry to derail your thread, OP...
  NRK will want new customers - but only savings customers. It should have few problems getting these if it can offer attractive rates (6% plus) as it's effectively backed by the government.
  However I can't see them being anything other than desperate to get rid of their mortgage business - given that they're renowned for their 100+ products, I suspect that their loan book is highly susceptible to a fall in houseprices. The more borrowers it can get shot of, the better.
• I don't really understand why NR would want to get rid of all the 'good' customers with low LTV ratios and less chance of defaulting. Doesn't make sense to me???
• Hi
  Thank you for all the 'comments' none of which so far have really answered my question or offered any advice. If anyone out there could offer some advice or information which would be useful rather than arguing the 'agenda which NR has' I would really appreciate it!!!
• Re advice, see below.
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