Omega Owners Forum

Chat Area => General Discussion Area => Topic started by: feeutfo on 07 October 2009, 00:25:47

Title: northern rock/offsetable mortgages/beware
Post by: feeutfo on 07 October 2009, 00:25:47
took a look at our finances and decided to move some savings around. We have a small lump sum offset against our mortgage with northern rock. Mrs gixer rang up to transfer the funds only to be told she couldn't!

 We would have to under go a means test, or something like that, to prove we could afford to make the payments on the mortgage without the lump sum to offset it, and that the house was still the same value or better and that we still had an income similar to what we declared when the mortgage was agreed.

Fairly sure we will be fine if "tested" but thats not the point. We where not aware of this rule and some people in the financial industry where not aware either. So thought some of you may want to to check your situation if you have a similar "one" style account, esp in the current climate, as it seems its a little known fact, not to mention a bloody cheek esp when you consider we transfered the lump sum from another account some considerable time after the mortgage was completed. It was never part of the mortgage agreement at the outset.

It may be that this is all part of the govt. bail out and are protecting tax payers money. Or its becoming the norm as part of these newer style accounts, either way, thought some may want to know if you cant get your savings when you need to.
 
Or you all know all about it, in which case thats fine. :-)

Cheers

Chris


Title: Re: northern rock/offsetable mortgages/beware
Post by: Gaffers on 07 October 2009, 00:30:40
If it does not form part of the credit agreement between you and the bank then they have no right to tell you that.  I would study the small print and speak to the ombudsman/CAB...
Title: Re: northern rock/offsetable mortgages/beware
Post by: feeutfo on 07 October 2009, 00:38:30
its early days, we only spoke to them yesterday, but that was our thinking, they seem to be sticking to their guns though.
Title: Re: northern rock/offsetable mortgages/beware
Post by: Martin_1962 on 07 October 2009, 08:10:05
Tell them as a shareholder you insist >:(
Title: Re: northern rock/offsetable mortgages/beware
Post by: feeutfo on 07 October 2009, 10:47:47
Quote
Tell them as a shareholder you insist >:(
Does take the pi55 doesnt it. My/our taxes bail them out, only for them to effectively seize my/our savings when we are most likely to need them. Bloody cheek.