Northern Rock Together Mortgage

reagan07

Hi, Im hoping somebody can help me

I have a northern rock together mortgage due to expire in November
Secured @ £786000
Unsecured @ £17000

My house is worth approx 82000 but obviously could drop, My payments are going to rise by £150.00 per month if i stay with Northern Rock, my question is could i even switch my mortgage in the current climate, I have only ever bee with Northern Rock so dont really have a clue what Im doing if im honest.

Would it be possible to move the secured part only???

Thanks For any advice in advance

dunstonh

There are no lenders who will let you borrow more than the house on a secured basis. Even if you took the unsecured part on with a personal loan (which would probably see your monthly payments jump up) you would still be short on the loan to value as its just short of 5% valuation (chances are you will get less than 82k as the value with the way values are dropping and being recorded).

Have you asked NR if they will offer you a deal when the current one ends?

reagan07

They sent me a letter last week saying they could only offer SVR as from November.

TBH we are looking at selling next year (i know this is going to be difficult but we have major problems with neightbours and noise, basically just made a huge mistake buying the house in the first place) and going into rented accomodation until we get ourselves sorted

As far as I understand it we can leave the unsecured part of the loan with northern rock if we did this??? Otherwise it would be negative equity?

Thanks for your reply

poppy10_2

You can leave the unsecured part, but the interest rate on it will shoot up.