Northern Rocks bad bank is not that bad after all.
Trumpo learns that people are able to move their Northern Rock mortgages to new properties.
I am very pleased to discover that the new state created bad bank is not that bad after all.
A friend popped into my office on Monday asking for some direction regarding her mortgage, now I am not authorised to give her advice, but when I asked who her mortgage was with, she told me she was with Northern Rock. Knowing how Northern Rock had been split into two seperate banking entities, I naturally asked her was she with the newly created, all singing all dancing, Northern Rock good bank, or swimming with the historical bad bank clients? She didnt know, so said she would ring them and check out if she was categorised as a good client or a bad client.
Now the lady concerned only has a £30,000 mortgage on a £150,000 house, so I guessed she would be low risk and sat with the new good bank. How shocked was I to discover that she is with the bad bank. Distressed by this news, my friend came into my office again and asked “why am I bad?” I said ring Northern Rock up and ask them that question outright. Following her call it transpired that she was never asked to prove her income, so I imagine she is now categorised as a “self cert client” - now deemed to be a “the devils mortgage client” according to the FSA.
The lady needs to relocate, she does not need to borrow any more money, but she does need to self certify her income. I then mentioned to her that she may now be deemed a “devil applicant”. I suggested she ask Northern Rock in the first instance if she can move her mortgage to her new home, or is she trapped? To her amazement, they said as long as she doesn’t need any more money, her mortgage is portable - fantastic!
This news will provide hope to the hundreds of thousands of Northern Rock bad bank mortgage holders, who until now had no hope of moving house in the next ten years. Most mortgage lenders do not want Northern Rock’s bad bank clients on their books, so people had been deemed in a mortgage trap.
What we dont know however is the specific criteria to allow this to happen, and hopefully some trusted advisers will make comment if they have similar experiences, comments and guidance.
Some positive news and hope for many.
Your Trumpo.
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February 18th, 2010 at 2:09 pm
It is not only Northern Rock where people are trapped. NAtionwide refuse to allow customers access to their own money unless they provide the Nationwide Token – a plastic card. Graeme Beale CEO refuses to allow his employees to accept a cheque book and a passport as proof of identity. Furthermore Nation wides stance is to refuse customers acces to more than £ 500-00 in cash at ANY ONE TIME.
BT refuse to permit us to have a telphone number transferred to our exchange. To have calls dicverted Ian Livingstone CEO, and Chairman Sir Michael Rake – charges our small firm £ 192-30 per quarter – and there is nothing we can do to have this amount changed. The costs are as follows
Rental charges £ 117-22
Cost of Calls £ 27-59 ( to have calls diverted )
Payment Processing Fee £ 9-00
Late Payment Charge £ 13-50
Since the calls are diverted to a residential line we are unable to make ANY CALLS OUT. BT charges £ 42-00 a QUARTER to have the residential Line ( and they previously changed it to a Business Line with EXTORTIONATE CHARGES APPLIED – without notifucation.
Does anyone else have a solution ?
Kind regards
Ian Lees
February 18th, 2010 at 2:13 pm
Thank you for that . I have been a mortgage broker for over 40 years with a Northern Rock Mortgage and presumed I was also in the “wilderness”
as I am moving this year it is good news for once in this current doom and gloom industry.Keep up the good work