Simon Lambert, Assistant Editor, This is Money, replies: Northern Rock became infamous for its 125% Together mortgage and was at the forefront of the 100%-plus mortgage movement.
However, while it had a chunk of customers with little equity, or none at all, it also had plenty of customers with good credit histories and substantial equity.
Since then a 20% fall in property prices has hit and this has caused major problems for those who took out mortgages with little or no deposit.
They are now in negative equity – their mortgage is worth more than their property - and will find it difficult to remortgage or move home.
But being in negative equity does not mean you will default on your mortgage or lose your home, as long as you can keep up with monthly payments and preferably start overpaying to chip away at the debt.
And this is where Northern Rock's bad debt problem comes in.
Northern Rock's bad mortgage debts have been exacerbated by the decision to encourage remortgaging customers to leave Northern Rock following its nationalisation: with the carrot of telling them they could get better deals elsewhere and the stick of failing to lower standard variable rates in line with the base rate.
This led to large numbers of good borrowers deserting Northern Rock for better rates at other lenders, but those who had borrowed large amounts found themselves unable to get mortgage deals from rivals.
These borrowers are now stuck with Northern Rock and despite Government calls on lenders to lower mortgage rates as the base rate fell, the taxpayer-owned bank has been one of those that failed to pass on all the cuts, leaving its already struggling borrowers paying over the odds.
Source
Monday, September 28, 2009
Tuesday, September 15, 2009
Remortgaging your home? Make sure you do it right
Results released by Mortgage Advice Drivers revealed that searches for remortgaging advice increased by 5 per cent since May bringing the total to 33 per cent.
These latest results prove that not many people are so clued up when it comes to remortgaging their home and need a trusted website to access all their information and advice.
And at Remortgage.com there is
an array of advice and information to make sure you know just how it all works and how you can get the best offer when it comes to remortgaging your home.
The website gives practical advice on remortgages and everything that comes along with the process that often many people forget or don’t know much about.
From features about ‘Home Equity Remortgage’ to ‘Important points to consider when remortgaging’ the team don’t miss a trick when it comes to the property market.
Their advice and trusted advice will help you put everything into perspective when it comes to remortgaging your home.
They make sure that you are not left in the dark about anything and can help you with retrieving quotes as well as testing out Remortgage Calculators and how accurate they actually are.
As Remortgage.com doesn’t actually give out remortgages or home loans, you can trust that their advice is unbiased and not tied to any one company.
And because remortgaging your homes is such a tough and big financial decision, Remortgage.com want to make sure that you ask yourself as well as mortgage lenders the right questions in order for it to benefit you
And Remortgage.com do not see remortgaging your home as a step down or negative move. If the process in the long run will potentially save you and your family money, then you are doing the right thing.
In the current recession most people are suffering and will continue to suffer in fear of stepping down the ladder and not regaining what they had back.
People who do this suffer long term as they can be left with nothing and have to declare themselves bankrupt, which is not a place you want to be in.
Source
These latest results prove that not many people are so clued up when it comes to remortgaging their home and need a trusted website to access all their information and advice.
And at Remortgage.com there is
an array of advice and information to make sure you know just how it all works and how you can get the best offer when it comes to remortgaging your home.
The website gives practical advice on remortgages and everything that comes along with the process that often many people forget or don’t know much about.
From features about ‘Home Equity Remortgage’ to ‘Important points to consider when remortgaging’ the team don’t miss a trick when it comes to the property market.
Their advice and trusted advice will help you put everything into perspective when it comes to remortgaging your home.
They make sure that you are not left in the dark about anything and can help you with retrieving quotes as well as testing out Remortgage Calculators and how accurate they actually are.
As Remortgage.com doesn’t actually give out remortgages or home loans, you can trust that their advice is unbiased and not tied to any one company.
And because remortgaging your homes is such a tough and big financial decision, Remortgage.com want to make sure that you ask yourself as well as mortgage lenders the right questions in order for it to benefit you
And Remortgage.com do not see remortgaging your home as a step down or negative move. If the process in the long run will potentially save you and your family money, then you are doing the right thing.
In the current recession most people are suffering and will continue to suffer in fear of stepping down the ladder and not regaining what they had back.
People who do this suffer long term as they can be left with nothing and have to declare themselves bankrupt, which is not a place you want to be in.
Source
Monday, July 20, 2009
Bad Credit Remortgage - Get A Mortgage With Bad Credit
When you are stuck in a mortgage, it is difficult to get out of it. It is even more unbearable for the borrower when he is aware that there are other offerings that allows a lower interest rate and could have saved money for him. The best solution for this problem is to take up a bad credit remortgage and save money for the future.
The people who suffer from a poor credit history and have a mortgage to deal with, they can be difficult to meet up with the situation since the mortgage also requires money to be paid off. However, they can now remortgage their previous decision with any other lender so that you get a lower interest rate. This will in turn save you money and also supplements other expenses if required.
If you have a house on mortgage, but are not able to handle the payments each month, then you can remortgage the house with any other lender that provides money to before the lender and pay him completely. The new lender but gives you a lower interest rate that you are comfortable with to pay off. This saves money on interest rates and remove the extra burden from your shoulders. Bad credit remortgage will help people to better their condition of instability. Their problems to resolve debt problems are also taken care of.
In order to have a bad credit remortgage, the borrowers are required to prove their credentials and their mortgage proofing. Also, before the approval of the remortgage, the bad credit borrowers are also studied for their credit history and financial statements. In order to get lower rates of interest on remortgages, the borrowers can research online. Tough competition between lenders makes it possible for borrowers to obtain a lower interest rate agreements and thus saves a lot of money for them.
Through a Cheap remortgage UK, the borrowers can now get free of their problems. The high prices for their mortgage will cease to trouble them anymore, and they can enjoy peace of mind.
Source
The people who suffer from a poor credit history and have a mortgage to deal with, they can be difficult to meet up with the situation since the mortgage also requires money to be paid off. However, they can now remortgage their previous decision with any other lender so that you get a lower interest rate. This will in turn save you money and also supplements other expenses if required.
If you have a house on mortgage, but are not able to handle the payments each month, then you can remortgage the house with any other lender that provides money to before the lender and pay him completely. The new lender but gives you a lower interest rate that you are comfortable with to pay off. This saves money on interest rates and remove the extra burden from your shoulders. Bad credit remortgage will help people to better their condition of instability. Their problems to resolve debt problems are also taken care of.
In order to have a bad credit remortgage, the borrowers are required to prove their credentials and their mortgage proofing. Also, before the approval of the remortgage, the bad credit borrowers are also studied for their credit history and financial statements. In order to get lower rates of interest on remortgages, the borrowers can research online. Tough competition between lenders makes it possible for borrowers to obtain a lower interest rate agreements and thus saves a lot of money for them.
Through a Cheap remortgage UK, the borrowers can now get free of their problems. The high prices for their mortgage will cease to trouble them anymore, and they can enjoy peace of mind.
Source
Monday, July 13, 2009
Bad Credit Remortgage
With UK debt soaring and serious economic problems looming on the horizon, the likelihood is that more homeowners will be looking for a remortgage in 2008 than ever before. This can indeed set the finances of a household back on track in no time at all, especially if you have planned and budgeted wisely. However, it is getting the remortgage that can be the problem, especially if you have a bad credit rating. In the past you may have struggled, but that is most definitely not the case today. High street banks and lenders as well as independent lenders have recognised the fact that there is a market for the bad credit remortgage and have decided to act upon the demand.
A bad credit remortgage is available from the majority of providers at the moment, including a few specialist ones. Hundreds of thousands of people apply for them every single year because they have great reputations for getting your financial situation back on track in a matter of weeks if you work hard and budget. Most bad credit products give people another option, and the mortgage and remortgage is no different.
Having bad credit is often not the individual’s fault. It may have arisen from any number of circumstances, such as one household member losing his or her job, a dire emergency or major illness. All three could have led to a few payments being missed and CCJs made. It does not make you a bad person, but you do have to prove that you have learned from your mistakes. The bad credit remortgage still gives you the same financial access but it also helps you to rebuild for the future!
Source
A bad credit remortgage is available from the majority of providers at the moment, including a few specialist ones. Hundreds of thousands of people apply for them every single year because they have great reputations for getting your financial situation back on track in a matter of weeks if you work hard and budget. Most bad credit products give people another option, and the mortgage and remortgage is no different.
Having bad credit is often not the individual’s fault. It may have arisen from any number of circumstances, such as one household member losing his or her job, a dire emergency or major illness. All three could have led to a few payments being missed and CCJs made. It does not make you a bad person, but you do have to prove that you have learned from your mistakes. The bad credit remortgage still gives you the same financial access but it also helps you to rebuild for the future!
Source
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