Mortgage & unsecured loan NR-Together Plan

hot_saver

Northern Rock - I actually took out a 'together' mortgage - so borrowed 160k as mortgage and 28.5k as unsecured loan with NR to cover fees, deposit etc.. my fixed term ends May - I cant afford the £200pm hike and I cant remortgage anywhere else as I dont earn enough to borrow 188k in total - which is what I need to keep the house. ( i earn 30k )

I havent got min 10% deposit to move. I have no savings either. ( I am seperated ).
Is there anyone lending on less than 10% deposit??? (house is worth aprox 190k if Im lucky)

Also - would I ( as a homeowner) be eligible for the government homestart / home choice scheme - equity share........ I dont know all the details....anyone got any advise please????? Very worried about the future & dont want to be homeless!

grogdog

you can move your main mortgage part and leave the unsecured part with nr, which if your ltv was correct is 84%, however your main problem is your income and you are not going to be able to borrow 160 on 30k especially if you have any other commitments ie car loan ,credit card , bank loans etc.

your best option may be to either extent your term with nr or change to interest only and overpay what you can afford each month.

silvercar

Is your mortgage interest only? If not changing to interest only would help in the short term.

You do have the option to take the mortgage of 160k to a different lender and keep the unsecured loan with NR, though the interest rate on the unsecured loan will shoot up.

When you say you are separated, is the mortgage still in joint names? If so your ex will also be liable for the mortgage payments.

Next May is quite a time away and lenders may be more relaxed by then. If you try saving hard now to reduce your unsecured loan it may be possible to move lenders. The other option is to sell up now, while you have a chance of clearing the loan and mortgage and rent for a while. Houeprices are not increasing so you won't lose out.

hot_saver

Thanks Folks

Forgot to say that my mortgage IS interest only - so cant 'down-scale' to that Im afraid!

Could pos move the mortgage ( in theory - but dont earn enough not to get 160k ) - however the unsecured loan would shoot up to 5% above the current base rate!!!!!!!!!
So .....cant look for a re-mortgage realy!..Im stuck.

Would happily downsize my mortgage & move house, but no houses around here at less than £150k ( mine valued about £190 ).....but have no deposit for a new mortgage. ( could pos scrape together 5K ish). Any lenders around offering something for me?

heard about the new homechoice shared equity, but dont know if I would qualify as I already own my own house???? Anyone know any details???

silvercar

If you sold at 190k and bought a cheaper property at 150k, you could initially keep the unsecured loan running. That would give you upto 30k deposit (190k-160k). If you actually only took 15k as deposit, you could reduce the unsecured loan to 13k. With a smaller mortgage you then should be able to work at reducing the loan totally.

dollarjon

In my "together" mortgage docs it says if i seperate the loan and the mortgage IE change the mortgage after the intro period to another company the loan part defaults to 18.9%! So check your agreement carefully.