I have one of these mortgages as well, I had assumed that it tracked the base rate whatever!

It would be a scandal if they changed from the BoE base rate.

Does anyone know if this is certain????????

I have looked at my original mortgage description and it states that it is based on a variable rate which is 0.69% above BOE base Rate for the entire life of the mortgage (30 years)

Now is the following a get out clause for them ?????

There is a section 12 though which it points out..

The bank of england base rate means the BOE official dealing rate (the repo rate) which is set by the monetary Policy Committee from time to time.

We may replace the BOE base rate (in it's current form) as the basis for calculating the interest rate for any of the following reasons:

Should it cease to exist, operate or be published.

Should it cease to be made available to banks

Should we reasonably determine that is has become inappropiate as the rate on which to base the calculation.

In any of the above the the BOE rate will be replaced with one of the following.

By an alternative rate or index not controlled by us and what we reasonably consider to be the nearest appropiate or equivalent substitute rate or index; and/or

By another method of determining the interest rate as we reasonably consider appropiate

In which event references to BOE base rate shall be deemed to be references to such substitute rate / index or a method of calculation as the case may be.

Hi, Its exactly the same for me although my previous mortgage advisor told me that Northern rock were paying his fees as I was a first time buyer and never told me that he was getting £1000 pound cash back on the mortgage and that would mean a tie in for a further 6 months have only found this out now when my fixed rate is at an end and like you I won't save £1000 in the 6 months. So I am currently putting a claim in to try and get this loan deferred and any money reimbursed might take a few months but hopefully will get it eventually.

Hi All

First time contributor and having read all of the above comments on Northern Rock I totally agree that is what we should do. (Set up and action group) - they have treated in particular BTL investors unfairly trapping many investors with high LTV products that they are now not prepared to help. Many of these investors can not now move as many have high LTVs and there simply are not the products currently available. I also think it is a disgrace they have not passed on the reduced BofE base rate cut as NR have reduced so significantly their debt in such a short period of time. I for one am up for the challenge as I think the least they could do is offer a short term remortgage option (even if it is outside their current lending criteria) or a svr reduction to assist the many people who are trapped. If they dont I fear many people will end up with significant arrears and then many repossessions will ensue

I sympathise with all of you stuck with NR. My understanding is that NR want to get shot of a big chunk of its mortgages. The easiest way of them doing this is by making it too costly for customers to stay with them so they make themselves the total opposite by being uncompetitive.

I too am a customer but thankfully (more by luck then good judgement) I took out a 15 year fixed rate 3 years ago and NR sent me several letters informing me that I could get a better deal elsewhere. I wrote back the first time and the second informing them that they were giving me the best deal out there so why should I change, especially since if I move they'd charge me £6000 redemption. Now I don't bother replying I simply shred them. NR will continue this way and unfortunately the Government will let them because all they want is to repay the billions the Tax-payer pumped into NR keeping it afloat.

My only suggestion is follow the advice of the more authoritive contributers to this discussion and move motrgages because until NR have paid back the money they owe you will get no help from them.

Best regards and good look for the future

Richard

Thanks to mr-tom and everyone who has posted here, I have found it all very useful being another NR customer trying to remortgage at this fabulous time...

There are in fact several Facebook Northern Rock groups set up - 'Sign petition to force Northern Rock to reduce their mortgage rates' is one with a link to an official petition:

http://petitions.number10.gov.uk/nr-rate-cuts/

I would urge everyone to sign this, it only takes a minute. Sending emails and letters to MPs and NR would be even more useful...

Good luck everyone!

Quote I have been told Quote

Who told you this?

Look at the original documentation, you will have a KFI....i section 4 headed Description of this Mortgage

it will state there exactly what his product is. It could be a product that tracks NR base rate & not BoE base rate

And in terms of how to escalate, write to them explaining this, say it is a formal complaint and then if they don't play ball, take them to the Financial Ombudsman Service.

Hi Paul,

If your deal is infact a tracker for life, it should have already reduced by the 0.5% (and hopefully even more as of next week). The type of deal you have has no link what so ever to the lender's SVR. It would only be linked to this if your deal was infact a discounted deal, and not a tracker mortgage.

I suggest you ring the northern rock accounts department if your payments havent decreased, and if not also query the type of deal you are on.

Hope this helps.

Michael

I have a Tracker for Life Mortgage with Northern Rock and I have been told that next week they will make a definate decision on what rate cuts they will pass on. They did suggest though that it's likely that only 0.15% discount will apply as they did on the SVR.

Surely a tracker mortgage should qualify for the full 0.5% ??

My other concern is if the base rate starts to go up again in the future, will Northern Rock then reduce the rate it goes up by or will they then pass on the full increase as set by the Bank Of England ?.

Something should be done about this surely ?

How should we complain about this so that it is looked into?

It is very easy.

Set up a group on facebook and then write a petition on the number 10 website.

Post the links to the petition here and in the facebook group.

Then get people to email their MPs demanding that they sign the petition.

It's a nationalised organisation. It can't withstand the pressure for long if you see this through.

Also tell the FT or similar as this will add to the embarrassent and also get publicity for the group and the petition.

Why don't all of you existing Northern Rock customers set up an action group & challenge them? Is their behaviour really treating customers fairly or are they disadvantaging you?

Several years ago Bank of Scotland offered "unscrupulous" mortgages called SAM- Shared Appreciation Mortgages, they withdrew them as soon as complaints started, however they've done very little to compensate those disadvantaged by these. Consequently, they have set up an action group & hopefully moving forward on this.......Why don't you people do the same.......starting by asking is it true and why did Adam Applegarth (chief executive) cash in £2.6m of shares near the stock's peak in August 2006 and January 2007???

http://www.safe-online.org/SAFE-HBOS-TALK-OVER-SAMS.html

We have a mortgage with NR which has run out and are now on the SVR. Trouble is our mortgage included £1000 help with costs that we have to replay if we change mortgage within 6months of the end of the previous rate. This is a pain in the neck but we're sticking with NR as we won't save £1000 in 6 months on a new rate. BUT they keep writing to us telling us about all the good deals they have secured for us with C&G, but they won't let us get out of the help with costs. I wish they'd pack up and go home and stop littering the planet with useless junk mail

Hi George,

What quite a few brokers don't realise is that the unsecured element with Northern Rock, can infact be left with them at a higher rate. What your friend could potentially do is remortgage away (hopefully at 90% LTV) and whatever they cannot get on the new deal, can be left with Northern Rock. Think the rate is about 8% above the SVR, but it is a way of getting away from them. It's called loading, tell your friend to look into it with her broker.

Michael

Michael - my friend is.

i told her to go to an ifa to find out what her options are - its not alot by the sounds of it :(

does it make a difference?