Diesel

Well I do, and I'm starting to worry about what happens when it ends. Normally they did you a deal but I think that they will probably be the least competitive when this happens this time?

Have a great deal of 4.99% and normally they charge you a three figure fee and you get to swop to a current good deal. Currently it's a great product as it allows overpayment/underpayment/payment holidays and I have a massive drawdown facility should I lose big at the poker

I fear I'm going to get hammered as I think there is a tie in or penalty to go to another lender for a year after the deal ends. I just think there is now way they will be competitive...

One option is to take the drawdown at 4.99% and put it in a mini ISA and get 5.65% tax free. Havent researched as this was just an offer I saw in poster i saw by the HBOS cashpoint yesterday

Anyone else in a similar position?

D

Tiggs

i have £300k with them at 4.8%.

when your deal is up you will go onto their std rate (high) or be offered an new deal (crap) so you just go elsewhere.....i'd be surprised if you are tied in BEYOND your fix rate as that is pretty harsh nowadays - are you sure?

rossyboy

iTrader: (8)

Yup, 100% one at that Still 20 months left though.

Its only 2.7 times salary, before anyone has a go

I'm starting to make overpayments so that it reduces % value when I need to move.

Kit B

My fixed rate with them ended at the start of March. It was to go up by over £130 per month.
I phoned them up to see if i could take another fixed rate...
The guy " advised " me to go and speak to a financial consultant. I just said to him " are you telling me that i should go somewhere else " he laughed and said yes...

Off to the Halifax i went and am only paying £20 a month more on a 5 year fixed rate..

fivetide

iTrader: (1)

Aye the 'fees' for ending a mortgage have been scrapped i think which was how they (and other lenders used to get you to stay. By signing up to the latest deal you were essentially restarting your mortgage but they got by you as it was only an arrangement fee and they were saving you the exit fee (how nice).

Basically speak to an IFA. I will be when my Northern Rock deal ends. Consider some of the smaller lenders too if you like fixed rate security. Dunfermline Building Society at least (sure there are others) do a 10 year fixed rate mortgage which allows over payment.

5t.

Diesel

Cool. Will dig smallprint out and worry less meantime D

GavFre

I may be wrong, but i am sure i read some ware that Northern Rock wont be renewing/continuing a third of there customers mortgages when there current deal ends? Is this correct?

rossyboy

iTrader: (8)

Think so. It'll be all the high risk ones that they took on and ended up shafting the company in the first place.

Tiggs

They didn't take any, other than that...useful contribution, well done.

rossyboy

iTrader: (8)

I believe that Northern Rock were offering up to 125% LTV at one point and were more than happy to hand out 100% mortgages to thousands. If that isn't high risk, then what is?

I know it was lack of available funds that almost put NR under, but wasn't that due to the type of people they were sometimes lending to. ie sub-prime? Lenders were therefore unwilling to lend NR as a result of what happened in the US?

There's no need to be an ar$e about it either

Tiggs

NR have no greater issues with defaults on their loans than anyone else.

rossyboy

iTrader: (8)

Ok, to be fair I maybe worded it wrongly. I meant that NR shafted themselves by taking on customers that other lenders saw as high risk, at a time when funds were starting to dry up.

I've not heard of high NR customer defaults either.............yet. Cost of living increases may change that, along with other lenders.

Diesel

Very sucessful company offering very competitive deals - they moved the game on from a customers point of view IMHO.

They were the first to get bad press due to the credit crunch and that (naturally) caused people to want to withdraw their savings and this sank the ship - that's how I see it.

D

AsifScoob

On a fixed NR mortgage for 18 months.

Not too bothered about what happens at the end, there will be another good deal out there I'm sure.

Just glad I got out of the 5 year Libor deal I was in before. 5 years was too long to be tied in this day and age.

Asif