Advice Needed!!!!.............

darldez1

Hi,

I have never had the need to post a discussion until now and have only viewed from afar.
You lot seem like a bunch who have there heads screwed on and I would like to pick your brains if I may(?)

We currently have a fixed rate mortgage with Northern Rock which is due to expire in 11 months.
It is an interest only product and we have an additional £13,500 secured loan running alongside it.
We are currently in negative equity and as you can imagine are seriously concerned about what will happen when the 11 months are through!!!
I would be extremely grateful if you guys could reply with some advice as to what steps I should now take to improve my situation.

I look forward to hearing from you.

Darren

opinions4u

1. Ask Northern Rock what would happen to your monthly payments if your deal ended today.
2. If there is an increase, start saving this amount monthly now - perhaps in to an ISA (e.g. if your payments are going to rise from £500 to £700, start saving £200 a month now).
3. At the end of the 11 months, stop saving, make a part repayment to your mortgage with the amount you have saved (£2200 in my example figures) and then you have shown yourself that you can afford the new payments, and got your debt down a bit too.

Gorgeous_George

Don't spend money unless you need to (that includes Christmas).

Do overtime/seek promotion at work.

Get a spare time job.

Save every penny as effectively as possible.

Keep smiling and look after each other.

GG

Gorgeous_George

opinions4u wrote: »

1. Ask Northern Rock what would happen to your monthly payments if your deal ended today.
2. If there is an increase, start saving this amount monthly now - perhaps in to an ISA (e.g. if your payments are going to rise from £500 to £700, start saving £200 a month now).
3. At the end of the 11 months, stop saving, make a part repayment to your mortgage with the amount you have saved (£2200 in my example figures) and then you have shown yourself that you can afford the new payments, and got your debt down a bit too.

1. 7.49% is what would happen today.

2. Good plan.

3. Review again a few months before the current deal expires.

GG

getmore4less

You have two options.

Prepare to take the rate that NR will give you. (make sure you can afford it) by cutting back sooner rather than later.

Resolve your negative equity so you can move your loans to better rates.

In a falling market the later may be difficult, no price rises and a lot of debt to overcome to get back to 90% LTV you would need to move.

Another option is sell up an start to repare the debt mountain if the debt is unaffordable on the likely new rates since it(debt) is likely to grow as prices drop.

darldez1

Many thanks for your words of advice so far.
Just one question: I was planning to try and overpay the mortgage by around £300-£400 a month rather than save and pay off a chunk as recommended - what would be the best to do?

Many thanks again.

Please keep any advice coming!! :beer:

minimike2

Why does the word Secured Loan in the original post link to a price comparison site?

Was that a genuine error or is this SPAM in a can?

opinions4u

minimike2 wrote: »

Why does the word Secured Loan in the original post link to a price comparison site?

Was that a genuine error or is this SPAM in a can?

Oh, I feel so used!!!!

judy2357

This is very similar to the post of Rebeccauk on the Freebies thread.

darldez1

Hi,

Is it possible that you could contact me first to discuss your suspicions, or is this the way all early posts from newbies are met?
I am a genuine person looking for advice and was hoping to find the new replies contained some positive advice rather than questioning my authenticity.
I do not know why the words secured loan are highlighted. I typed out the message and only when I read it back after being submitted did I realise this.
If you can tell me how this would have happened, so that I can avoid making the mistake in the future and how to rectify it, I would be grateful.

Many thanks again to those who have posted helpful replies, I am genuinely grateful for the advice.
Please, if any of you have any more advice do reply.

Darren

minimike2

Can I suggest you edit your post to remove the offending link.

I did actually "ask" if it was an error - usually I am straight on the back of spammers, but on this occasion I did give the benefit of the doubt by asking first if it was a mistake.....you can see form the point of view of forum users how it would look most suspicious having that kind of link on a site such as this.......