Northern Rock customers face remortgage challenge
One in five Northern Rock customers with a high loan-to-value (LTV) mortgage faces negative equity, reports The Telegraph.
As customers come to the end of their fixed rate term, Northern Rock is encouraging them to remortgage elsewhere. However, a lack of equity, coupled with the credit crunch, equals a hard time for many. The troubled bank now fears that no other lender will want to offer many of them a remortgage deal.
Executive chairman Ron Sandler admitted this may leave Northern Rock with a high risk mortgage book.
September 12th, 2008 at 10:56 am
As a Northern Rock customer with a 5-year fixed, 100% LTV, 25yr repayment mortgage, how do I find out/estimate the balance of the loan at the end of the fixed period(Aug 2009)? The interest rate is 6.29%. For the purposes of remortaging would it be 4/5ths of the original mortgage?
The way the balance is calculated on the mortgage statement is completely useless at it appears we’ve only paid about 6k off!