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Posted: Mon Sep 17, 2007 1:26 am
by Lisa2009
With all this stuff going on about northern rock and myself not realy knowing how these things work...What would happen if a person took out a mortgage with a company and after a while that company ran into difficulties? How would that affect the mortgage? Would that mean that people will lose their homes?
Sorry if i sound a bit thick but i really would like to know where one stood if that was to happen.
Posted: Mon Sep 17, 2007 7:56 am
by MelanieGiles
If the bank were to be sold, then your mortgage would also be sold as an asset of the bank and you would then pay your money to the new owner. If the bank entered into liquidation, the mortgage book would be sold to the highest bidder. Under very worse case scenario, the Bank of England would step in temporarily to assist - so the effect on you would be minimal.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp
See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp
Posted: Mon Sep 17, 2007 8:41 am
by mikebdomain
What could go wrong – you have your house, the bank has a charge on your house, the bank is contracted not to ask for their money back. If the original bank closes their book the loan will be bought by another bank that will have to stick to terms no worse than stipulated in your original contract.
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Posted: Mon Sep 17, 2007 9:38 am
by kandh
I'm glad someone asked this question. Hubby and I were talking about this scenario last night and the what ifs. Not that we have a mortgage or anything to do with Northern Rock but we just pondered. Do you have a say in what happens to the mortgage and who takes over (say for example you were in an IVA and one of your creditors was the one to take it over, would this have any bearing on it?)
Also what happens to savings etc (for those that haven't withdrawn over the past couple of days) if it does go badly wrong for NR or any other company?
Sorry, just really curious and interested. [:I]
Posted: Mon Sep 17, 2007 9:41 am
by Lisa2009
MIne is nothing to do with Northern Rock, but like you i was thinking of the what if's.
Thanks Andy and Melanie your replies have made me feel a bit more relaxed about it now.
Posted: Mon Sep 17, 2007 9:44 am
by MelanieGiles
kandh
You would have no say in who the mortgage was transferred to, but it would not matter if the bank was one of your creditors as mortgages are secured loans against the value of your property.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp
See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp
Posted: Mon Sep 17, 2007 9:49 am
by kandh
Thanks Melanie for replying so quickly!!!
My questions probably seemed really stupid but I have never had a mortgage or any secured loans before or even been in a position to even begin to think about having one so they are an alien concept to me! [:D]
Posted: Mon Sep 17, 2007 9:50 am
by MelanieGiles
Not stupid at all - and probably questions that lots of other people want to ask as well so keep them coming!
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp
See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp
Posted: Mon Sep 17, 2007 9:55 am
by Lisa2009
The lenders we have had an offer from are a fairly new lender so i read last night and have already stated something about not offering half as many mortgages at the moment than they did in their first year so thats what got me thinking. Probably a daft thought but i felt i needed to ask before committing.
Posted: Mon Sep 17, 2007 9:56 am
by mikebdomain
Who is the lender skint
FREE ADVICE IS THE BEST ADVICE
LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.
see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf
Posted: Mon Sep 17, 2007 9:58 am
by Lisa2009
The lender is Edeus, i read last nigh that they only started in september 2006
Posted: Mon Sep 17, 2007 10:06 am
by mikebdomain
Skint I think you are pretty safe with them, they are a private equity backed firm. Their backers are The Oakwood Group.
FREE ADVICE IS THE BEST ADVICE
LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.
see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf
Posted: Mon Sep 17, 2007 10:07 am
by Lisa2009
Thanks for that Mike. Once again you made me feel better [:D]