Unsecured and Secured Parts of Mortgage

angeljay

Just trying to get my head around all this because I am new to it and in a stressful situation.

My ex left in Oct 2007 but kept his name on house and mortgage and i paid for the mortgage solely since then. He was happy to keep his name on it. Now due to losing his job he cannot get any benefits because his name is still on the mortgage and house and wants taking off.

My mortgage is with NR and fixed rate runs out may 2009.

The mortgage is just over £ 75500 and then a seperate unsecured loan for just over £23500 also from NR took out at the same time all paid in one payment by direct debit which my ex pays nothing towards.

I have tried with NR to move the mortgage over to just my name, current salary 19K per year and I also have a lodger paying £350.00 a month. They would not do this. What I want to know now is can I remortgage for the mortgage only leaving the unsecured loan with NR ? If my house is worth about £105K will this count as LTV ? I know my lodger is not going anywhere but he does not want adding to mortgage. So i can make payments of £550.00 per month.

I am unsure how it works with Unsecured and secured parts any advice would be most helpful.

Thanks.

m_13

An unsecured loan isn't secured on your property and so has nothing to do with your mortgage. It's probably just tidier to pay them in the same payment if it's to the same company.

Are you absolutely certainly the loan is unsecured? The limit for unsecured loans is normally £25,000.

If it is unsecured then you want to remortgage a house worth £105,000 and you owe £75,500 on your mortgage? That's a LTV of 72% which is possible. However, the fact that you already owe £23,500 on an unsecured loan is likely to count against you.

I think it's important that you get the ownership of your home sorted out. If you have been paying for the house since October 2007 but the ownership is still registered as 50/50 with your ex then you are paying for something that he has an interest in. It sounds as though now he is not working he wants his name taking off the mortgage. Did NR tell you why they don't want to put the mortgage in just your name?

angeljay

Yes the unsecured is definetly that amount, i have checked it on their website as well as all the paperwork that we originally got.

My ex wants nothing to do with the house, no payment nothing he just wants his name removed due to the fact benefits wont pay him because of it.

I have contacted a solicitor to remove him from the deeds and they have said i must remortgage first.

The letter from northern rock read:

"The application has fallen out outside of Northern Rocks Lending policy as the level of income is less then we require to demonstrate that the mortgage can be comfortably maintained for the duration of your loan term!"

Even though i did state in my application that i have managed to pay the mortgage since october 2007 myself.

Both parts of the mortgage and unsecured loan are in both names, will this make any difference?

Thanks for the reply by the way

m_13

Thanks for the clarification

I suspect NR are taking into account the unsecured loan payments when they are deciding whether or not you can afford the mortgage on your own (despite the fact that you are already paying the lot).

Did you tell them that you have a lodger via the 'rent a room' scheme?

angeljay

Yes I did put that I have a lodger and how much they are paying.

I currently have credit cards which i pay £100.00 a month to as well.

They just said in the letter that I need to eiether add an additional party or reduce the balance to £71692.00 the letter says my outstanding balance on my mortgage is £97500.00

I have rounded these figures off by the way just to make it easier.

My brother has said he may come onto the mortgage but he has to sort his mortgage for his home first which is not done for a few more months and my ex wants this sorting now and to be honest I would like it in my own name.

What would you suggest I do ? :cool:

silvercar

You can remortgage the secured part elsewhere and keep the unsecured loan with NR.

The downside is that the interest rate on the unsecured part will shoot up to something really high and unpleasant; at the moment they are giving you a very good rate on the unsecured loan because you have the mortgage with them.

angeljay

:beer: Any advice would be great please

angeljay

silvercar wrote: »

You can remortgage the secured part elsewhere and keep the unsecured loan with NR.

The downside is that the interest rate on the unsecured part will shoot up to something really high and unpleasant; at the moment they are giving you a very good rate on the unsecured loan because you have the mortgage with them.

Yes according to the terms from Northern Rock interest rate would go up by 8% on top of there SVR so thats about 13.04% for a loan. If i can keep both mortage and loan payments to about £525 - £550.00 a month i could still afford it.