To ask if you think our mortgage will be affected

[AnnabellaH]

We have the northern rock 'Together' mortgage (thank you ex sisterinlaw who was a mortgage broker and convinced us at 19yrs old the market would never crash ).

We're now with NRAM and have been on the standard variable rate since the 5 year fixed rate ended about 6/7 years ago.

Will the bank of england base rate increase that's expected likely affect us? As the standard variable is set by them and not tracking the base rate.

I don't really understand how it all works :(

We are not and have not been in any position to change provider for several years due to change in circumstances and wont be for another 2yrs at least

It’s variable so probably. I can’t see any banks or building socs not amending their SVRs.

Yes, I expect it'll go up by around 0.25%

I think it will go up for people on the variable rate. But I heard on the news tonight that if it goes up 0.25% that's only £12 per £100,000K of loan. So don't get too worried.

Have you seen a mortgage advisor?

We have just last month left our NRAM together mortgage, which went into a variable rate 6 years ago. We have been in very difficult financial circumstances and didn’t think there was any chance of escaping from them and were worried about interest rates shooting up.

We managed to remortgage with another company, recommended by an advisor, and are now on another fixed rate deal. Saving over £300 p/m !

Honestly I thought we had absolutely no chance due to drop in earnings, poor credit ratings etc. But amazingly enough it has happened.

Banks generally add any rate increases far quicker than they drop them. This will impact you on the SVR.
You've been on SVR a long time and if you contact a fee free broker such as London & Country, they can check to see if they can find you another better deal.

Gillian1980 we defaulted on a credit card 2 years ago - all fully paid off now though. We also only have one income at the moment which is less than £20k - £16k less than when we got the mortgage :(

Would they still be able to help? I thought we were a lost cause.

I don't think it's too late to lock in a fixed rate is it? I know what you mean about not being able to change provider due to change of circs etc. We've two mortgages with different lenders and our fixed rates were due to end in Dec. But we have secured another fixed rate before the rise as you can do it 3 months before existing fixed rate ends.

Is that a possibility? Sorry, don't know the specifics of NR mortgages.

You should have sought another fixed rate while interest rates were low. We're about to start over with a mortgage and have fixed for 10 years.

PickAChew - we have not been in a position to change lenders. All income was self employed foe the past several years and varied greatly every month. Only now is there a steady guaranteed income again and I'm currently 5m pp recovering from a traumatic birth and nearly dying from liver failure (after complications with that and my gallbladder). I wont be returning back to work for several months.

But thanks for telling me what I 'should have' done

It's worth a punt. At least if they say no you know you tried.
Your income is only and issue if it makes the multiple xxxxxx to borrow what you need. There are many variables, so you need an expert.
I don't work for L&c, just used them twice and they are ace.

Speak to your lender and ask for a rate switch.

Barclays and Leeds BS don’t do affordability checks to switch into one of their own rates - you just sign to say you can continue to afford it. I assume it’s the same with other lenders (I just know these two from personal experience).

Our income has dramatically reduced since we bought in 2007 - our payments have reduced by half over ten years due to the base rate changing and us switching rates.

If they allow rate switches I would also seriously consider raising a complaint as to why you weren’t made aware this was possible - SVR is almost certainly higher than a rate you could switch to.

Diana we're with NRAM. Northern Rock Asset Management... they are basically the debt holder for Northern Rock when they went bust. They are not a lender and do not offer rate switches or changes.

To top it all off I just found a default notice from Tmobile on my credit file advising I have been deceased for 4years

FFS.

Another bloody thing I have to sort out.

Consult an independent mortgage advisor local to you. Google your town, there will be one.
You can't be tied to a mortgage and not be able to change it. Independent is the key word, they'll recommend best options.

Be worth looking for a good mortgage broker. Nothing to lose, and you never know, they might be able to help.

Our mortgage co went bust 2008 and we’ve been stuck on a high rate ever since. We’re stuck as we haven’t done so well last 2 years and self employed, so no one will touch us.

Think Halifax take tax credits into account.

Good luck. Nothing ventured nothing gained!

I'd also recommend seeing an independent financial advisor. They know the market, how it all works and can find their way about all these complexities in a way that we, or at least I, couldn't even begin to imagine!

Dang it.

I agree it’s definitely worth speaking to a broker then.