NR Together mortgage - overpay on mortgage or loan?

nozzy6

Hi, after some advice on our mortgage. We took out a Northern Rock Together mortgage last year - £132000 mortgage and £8000 loan. At the moment we are able to save a little extra each month with the intention of overpaying by £300-400 every couple of months but my question is which is better to over pay on - the loan or the actual mortgage?

Any advice will be much appreciated, thanks

mick_1967

I was wondering the same myself, £78k o/s split between secured of £70 and £8k of unsecured

koexelek

If you are thinking of moving house in the future, I'd make repayments off the main mortgage.
The more equity you have in the house, the easier it will be to move.
The unsecured part is not linked to the house value, so you can take it with you if you move

getmore4less

nozzy6 wrote: »

Hi, after some advice on our mortgage. We took out a Northern Rock Together mortgage last year - £132000 mortgage and £8000 loan. At the moment we are able to save a little extra each month with the intention of overpaying by £300-400 every couple of months but my question is which is better to over pay on - the loan or the actual mortgage?

Any advice will be much appreciated, thanks

I though the way these were structured the secured/unsecured cannot be sepparted so while you are unable to mortgage elsewhere(not enough equity) as long as the rates on both parts are the same it makes no difference.

bilbob_2

They can be seperated, although once you do so, and move your mortgage elsewhere, the unsecured loan will go to a higher rate. In some cases, much higher. Another effective measure of locking customers into expensive loan deals whilst pretending that they want to reduce the loan book....

nozzy6

koexelek wrote: »

If you are thinking of moving house in the future, I'd make repayments off the main mortgage.
The more equity you have in the house, the easier it will be to move.
The unsecured part is not linked to the house value, so you can take it with you if you move

thankyou for your advice, much appreciated!