Archive for the ‘Northern rock’ Category
Wednesday, July 9th, 2008
Northern rock has issued its first competitive mortgage rates since a run on the bank almost brought it to its knees last summer. It has two-year fixed-rate loans that, while not the very best on the market, are good enough to bring in new customers. For buyers there is a rate of 6.39% and for remortgagers a rate of 6.49%. Both have a £995 fee. The lowest rates for two-year fixed deals are available from First Direct and Yorkshire BS.
Northern Rock has been trying to move existing customers to rivals since last September. Its rates have got progressively more expensive as it tried to price itself out of the market to avoid taking on new business. These new rates are not available for existing customers. While these rates are not the very best, where they have a big advantage is that they are fully flexible, meaning you can overpay as much as you like without penalty.
Tags: buyers, existing customers, First Direct, fixed rate, mortgage, new rates, no repayment penalty, Northern rock, remortgage, two-year fixed rate, Yorkshire BS
Posted in Banking, Credit crunch, Finance, Government, Mortgages, Northern rock, Re-mortgage | No Comments »
Sunday, June 15th, 2008
Lloyds TSB has struck a three-year deal to take on Northern Rock customers who are coming to the end of fixed rate mortgage deals. Certain mortgage customers will be offered the opportunity to switch to a Lloyds from July. The deal will assist Northern Rock in reducing the size of its balance sheet. Lloyds has set a maximum loan to value ratio of about 80% for the mortgages it will take on, but it said this will be flexible. The tax payers obviously have the rough end of the deal here - as Northern Rock which is now state owned will be left with the riskiest borrowers, just as housing repossessions are expected to rise. Northern Rock itself warned last month that arrears were rising and shifting customers could become more difficult as the economy worsens and rivals cut back on lending.
Tags: Lloyds TSB, Loan to value, LTV, mortgage, mortgage deals, mortgage switch, Northern rock
Posted in Credit crisis, Credit crunch, Home loans, Lloyds TSB, Mortgages, Northern rock, Property Market, Repossession | No Comments »
Friday, February 22nd, 2008
Northern Rock has pulled its 125% mortgage after heavy public criticism for the super-size homeloan. The troubled bank will no longer offer the Together mortgage to new customers as it seeks to move towards low-risk lending and shrink its mortgage book. Alliance & Leicester, Abbey, Coventry Building Society and Godiva all pulled their 125% homeloans earlier this week. The only lender still offering 125% mortgages is Birmingham Midshires and experts have suggested it will soon take the product off the market. Fears have been raised that those coming to the end of 100%-plus mortgages may be in for a payment shock and unable to find credit elsewhere. Mortgage lenders have been reassessing their ranges in response to tighter market conditions and have become more reluctant to lend to those with chequered credit histories or high loan-to-value ratios.
Tags: 125% mortgages, Abbey, Alliance & Leicester, Birmingham Midshires, Coventry Building Society, Godiva, high loan-to-value, Northern rock, Northern Rock mortgages
Posted in Credit crisis, Credit crunch, Finance, First-time buyers, Mortgages, Northern rock, Personal Finance, Property, Property Market, Property Prices | No Comments »
Tuesday, February 19th, 2008
Rival banks protested that the nationalised company could enjoy a huge competitive advantage over them and steal business away. And MPs complained that the Rock was risking repossessions by attracting new customers with offers to lend them far more money than their homes are worth, by offering cheaper rates on loans of up to 125% of property values - where a quarter of the debt is unsecured. The political crisis deepened after the Government refused to deny claims that taxpayers face a £100m bill for the cost of advice from banks and lawyers during the failed efforts to secure a private sale. The Prime Minister has said nationalisation was a temporary measure, although new Northern Rock boss Ron Sandler has said it will be ’some years’ before the bank can repay its debts. Today’s emergency Bill will give the Government special powers for 12 months to nationalise any bank, not just Northern Rock where it is necessary to protect “the stability of the UK financial system”.
Tags: Government, mortgage rates, nationalisation, Northen Rock, Northen Rock mortgages
Posted in Banking, Credit crisis, Credit crunch, Finance, Government, Mortgages, Northern rock, Politics | No Comments »
Monday, February 18th, 2008
Homeowners with a Northern Rock mortgage will continue to pay it as normal. Monthly payments and terms and conditions will remain the same, but Northern Rock mortgage holders now owe the taxpayer money rather than the bank. They will find, however, that securing a new deal from Northern Rock is unlikely to be worthwhile, as the bank’s mortgages have become uncompetitive since the crisis began and better rates can be found elsewhere. The number of new mortgages from Northern Rock will be seriously reduced and rates are likely to remain uncompetitive. The Government will seek to avoid being accused of using the benefits of state ownership to beat rival mortgage lenders’ offers. Currently, Northern Rock’s two-year fixed rate mortgage is set at 6.99%, with a £1,995 fee – this compares to Halifax, which is offering a two-year fixed rate at 5.89% with a £999 fee.
Tags: Government, Halifax, mortgage rates, Northen Rock, Northen Rock mortgages
Posted in Banking, Credit crisis, Credit crunch, Finance, Government, Investments, Mortgages, Northern rock, Personal Finance, Property Market, Property Prices | No Comments »
