Mortgage/Loan - selling up question

Dangle_kt

Hi,

Me and My wife HATE living where we do, since being burgled I detest driving into the scum-ville that is our area. We are desperate to move, so we are planning on selling up and renting for a few years.

We have a mortgage, with an unsecured loan on top (we consolidated debt when we moved in) that we have had for a about 3 years.

The house is worth more now, but maybe not enough to cover the consolidated debt we added.

What happens from a motrgage point of view if we sell up and don't have enought to cover the mortgage AND all the loan?

In my ignorance I am guessing we can move, and just keep paying the unsecured loan off. It isn't secured on the house, so renting rather than being a home owner shouldnt change anything.

Can someone confirm my logic before I make an !!! of myself calling Northern Rock to check.

Thanks!

klaatu

If the loan isn't secured on your house, you can sell the house and just pay off the mortgage.

Dangle_kt

klaatu wrote: »

If the loan isn't secured on your house, you can sell the house and just pay off the mortgage.

Thank you!! :j

poppy10_2

However if you pay off the mortgage and keep the loan, the interest rate on the loan will rise considerably.

Toughluck

Another N Rock together client (or old school coventry or Alliance & Leicester client). As mentioned if the unsecured loan was attatched to the mortgage as in the same rate, you can clear the mortgage and run, but ultimatley the personal loan interest rate will increase.

Just ensure that if the secured lending, once the property has been sold, is covered, make sure you have kept enough money aside for EA fees and solicitor costs. Do the sums first before you jump in.