The Northern Rock Scandal!

razil

Just been on the phone to Northern Rock, they call you towards the end of your fixed rate to tell you...

We aren't offering mortgages to existing customers

Although we offer products on the paperwork we sent you, they are just for show from our marketing dept and don't really exist! And we aren't doing any new business at all.

Also if you do move rather than staying on our variable rate when your fixed rate expires, we will charge you an exit fee (despite not offering you any kind of new fixed deal no matter who you are or your situation!!)

So essentially in run off despite being government owned, and the government forcing other banks to offer deals.

Oggy Red

Raz, I had a fixed rate 3 year deal with the Northern Wreck ...... and when it expired, I just let it run on as the easist option as I'm self-employed and couldn't risk being refused from someone else, in case it affected my credit rating.

What with an exit fee and stuff, it seemed just as well to stay where I was in the short term.

So I'm probably paying too much - but the variable rate has dropped to 5.84%, which is a lot better than it was.

Salad

Raz - have a butchers at this ....

http://www.moneysavingexpert.com/reclaim/mortgage-fees

[i]"Northern Rock has £15 million set aside to pay exit fee claims. Wants people to write to Customer Support, Northern Rock PLC, Northern Rock House, Regent Centre, Gosforth, Newcastle upon Tyne, NE3 4PL, and include a contact telephone no. If a refund is due they will ask you to sign a declaration form."[/i]

and they have a letter template to write to them to claim back some or all of your exit fees - this is all after you have switched.
http://www.moneysavingexpert.com/redir/ce917000

Something else suggested is paying off NEARLY all the mortgage, leave say £50 on it! Not sure if you can in effect have two mortgages on a property though, or what happens if you were to sell the house.


Look at this too: http://www.moneysavingexpert.com/mortgages/remortgage-guide

Mortimerician

To be fair mate it's unreasonably that they're charging you an exit fee, but the mortgage business was what got them in all this crap, so I can see their point.

LargeAddick

just remortgaging from Britannia to HSBC - lifetime tracker at base plus 0.99%, no collar either. £800 fee but seems worthwhile. Fee free package as moving from another lender, can overpay, part repay, repay in full all without charge.

suzisausage

we're staying with our lender because the standard variable is the much less than our fixed rate that is coming to an end. we can't get a mortgage with anyone else at the mo cos we haven't paid 25% of our mortgage yet, and most places only offer mortgages on 75% of a property. Suits us at the mo, but if the rate goes up in 6 months/1 year we could have a bit of difficulty but will go on the fixed rate with our lender who will give us a mortgage - but charge us a fee of £1250 for doing so. nice. !!!

Shag

i've got a variable that fixes on the libor rate against the net base minus a tracker of 0.5% linked to the RPI index monthly trend so our house price should go up versus the risk skeleton chart offsetting the government backed bond buying

Oggy Red

The arrangement/exit fees no doubt amply compensate the lender for discounting their mortgages?

So all this discount stuff is just bait to get you to buy their product in the first place - and then they cane you to recover their profit that they first gave away.

DaveMehmet

"i've got a variable that fixes on the libor rate against the net base minus a tracker of 0.5% linked to the RPI index monthly trend so our house price should go up versus the risk skeleton chart offsetting the government backed bond buying"

Any chance you could post that in English!! ;0)

StanmoreAddick

[cite]Posted By: Shag[/cite]i've got a variable that fixes on the libor rate against the net base minus a tracker of 0.5% linked to the RPI index monthly trend so our house price should go up versus the risk skeleton chart offsetting the government backed bond buying

And i'm there trying to work that one out..


Time to pack up me thinks...

northstandsteve

base rate tracker plus .18% for as long as i want,happy days

StanmoreAddick

[cite]Posted By: northstandsteve[/cite]base rate tracker plus .18% for as long as i want,happy days

Never bettered!!

with the Woolwich eh- i have a good number of clients on this- great for them but i'm unlikely ever to remortgage them

Cracking deal...............

razil

Aye the variable is about the same as my fixed rate currently so I will more than likely hold on for a bit. The scandal that they are able to lie when they are gov backed, and charge an exit fee when they are not offering new products to existing folk is an outrage in my view

northstandsteve

[quote][cite]Posted By: StanmoreAddick[/cite][quote][cite]Posted By: northstandsteve[/cite]base rate tracker plus .18% for as long as i want,happy days[/quote]

Never bettered!!

with the Woolwich eh- i have a good number of clients on this- great for them but i'm unlikely ever to remortgage them

Cracking deal...............[/quote]

yes mate,did it last september,had a feeling rates would come down and had peaked.

Oggy Red

[cite]Posted By: razil[/cite]he scandal that they are able to lie when they are gov backed,

Government are led by politicians. When have you known them to tell the truth ....?

)

Salad

they are offering a mortgage, the standard variable, just no fixed rates or special deals.

Leroy Ambrose

My mortgage is £420 a month, and I've got five years left on it before I'm completely mortgage free. Oh the joys of paying off lump sums every three years to get rid of the criminal frontloading lenders get away with.

On the other hand, I do live in the abject shithole that is Croydon.

I'm with the Nationwide - have been since I first bought it in '99 and would never leave them - their rates are reasonable, they never give you the hard-sell bollocks and have never looked even remotely like demutalising, so they're fine for me.

Feel really sorry for some people though - a mate left a good contracting job a couple of years ago to take considerably less money working for the public sector because it was a 'safe, reliable job'. His department has just been outsourced, all been made redundant and his skills have atrophied so much in the past two years of mindless tedium that he can't get a contract role. Meantime, his mortgage is due up in two months and he can't get a remortgage for love nor money. Its a shitty, shitty world.

Darren

Soz, thought this was an Oasis thread. Coat, hiccup, exit...

Carter

I used to cry to my mum

'It's not faaaaaair'

Nor Frank Brunos arse, she would reply. I copped it when the rates went up now they eventually (2 months payment time) are less than when I first bought the place. Thats life, it is a shitter and I am no better off but thats life

razil

[quote][cite]Posted By: Salad[/cite]they are offering a mortgage, the standard variable, just no fixed rates or special deals.[/quote]

Government are insisting banks restore market conditions for lending from a year or so back, yet state owned bank clearly isn't.

razil

this is odd I am being told my sv rate is 6.8 or something, yet their site is saying very different. More lies from the Rock?

http://companyinfo.northernrock.co.uk/corporateCommunications/news/article.asp?newsID=220

pete_tong1

owned by the government and their customers being screwed by OUR governement whilst on the other hand the same government is telling the other banks/building societies to pass on interest rate reductions to their customers.

razil

my thoughts too, surely its fraud or something though.

LenGlover

[cite]Posted By: razil[/cite]my thoughts too, surely its fraud or something though.

Unfair trading certainly but would the Office of Fair Trading find against the Government which finances it?

Thought not.

razil

i will check my paperwork again, perhaps it should be brought to the attention of the media?

bingaddick

Try emailing Mandelson directly.

Try this link

LenGlover

I've thought a bit more about this.

My initial thought was that it is unfair Northern Rock borrowers don't get the benefit of cuts and my first instinct still veers that way....

However we are now talking about an organisation subsidised by taxpayers' money so one could argue that the responsibility is to repay the taxpayer as soon as therefore don't pass on interest cuts.

However again(!) Northern Rock borrowers are also taxpayers so it all becomes a bit complicated.

razil

OK in the interest of balance thought I'd mention I have investigated further and the current SVR of 5.09% will apply to me in March, a higher rate of 6. (something) applies to part which is a secured loan and different from mortgage rate. Still think its high considering, the boe rate and that NR is government owned.

Oggy Red

I'm with the Northern Wreck ......and they've been generous enough to reduce my mortgage interest rate by 0.25%, after base rate was cut by 0.5%.

Of all the number of times base rate has been cut in the past few months, I can't ever recall a time when Northern Rock passed the full base-rate reduction on to it's borrowers.

And, yep, I'm now on 5.09%.

WSS

[cite]Posted By: Oggy Red[/cite]I'm with the Northern Wreck ......and they've been generous enough to reduce my mortgage interest rate by 0.25%, after base rate was cut by 0.5%.

Of all the number of times base rate has been cut in the past few months, I can't ever recall a time when Northern Rock passed the full base-rate reduction on to it's borrowers.

And, yep, I'm now on 5.09%.

Oh Oggy - i'm on their tracker and paying 3.09% I think. Dreading it running out in October though and getting that standard rate (even though i hear the government are urging them to offer deals to existing and new customers again)

Oggy Red

Good for you, West Side ........ maybe they'll do the tracker again sooner rather than later?

I've now come off my fixed rate and a bit in limbo ..... and as I'm self-employed, it's not so straightforward.