Northern Rock 100% mortgage + unsecured loan

jimba1

A few years ago my sister took out a 100% mortgage on a flat with a 17k unsecured loan to cover some structural work and improvement costs. This was part of Northern rocks 125% mortgage deal.
As she is now married living at a new house, I have now moved into the property and pay 3/4 of the mortgage while she pays enough to cover the unsecured loan.
Lots of drawbacks here - we have to pay the same relatively high interest rate on both the mortgage and unsecured loan and the amount owed doesn't appear to reducing very much.

We have talked about doing the following and would like some advice please.

1) Move the unsecured loan to a secured loan on her new property.
(pay off and borrow again)

2) Remortage minus the unsecured loan to get a much lower rate.

It seems the sensible thing to do but I'm not sure of any loop holes/catches with Northern rocks 125.

Any advice welcomed.

Thanks

beecher

Work out what the value of the property is and the LTV the mortgage would be. It sounds like it will be high, and if it is above 90% you won't be able to get a deal elsewhere. If it is 90% you might be suprised at how high any rate you get would be.

Are you in a deal with NR at the moment? You'd have to pay an Early Repayment Charge to come out of it if you are.

Does your sister have enough equity in her new property to add 17k to it and still be under a 90% LTV?

jimba1

Thanks.
Will get a valuation sorted.

Yes, luckily my sister's husband already had the house a few years which has a lot of equity so at least part of the problem can be shifted.
I'm not sure what NR's early repayment charges are - so will have to give them a call unless anyone else knows ?