Northern Rock Mortgages

Mojoblainy

Hi All,

Dont know if anyone can help or has info on my current situation?

Purchased current property with my Husband back in 2004 with a 'combined' mortgage with Northern Rock.

We have an amount secured and an 'unsecured' loan amount which was used to furnish the house and pay off other debts. This unsecured amount is shown separately on my mortgage statement.

The property is a starter home and we have now outgrown it and wish to move to a larger property. Only problem is that Northern Rock say we must make enough money from the sale of the house to pay off both secured and unsecured and we cannot carry over the unsecured amount to a new property even if we stay with them as a lender!

This mortgage package was sold to us and left us thinking that we could move house and move the unsecured amount with us like a bank loan! The thing is the properties similar to ours are being marketed at 115k but to sell and clear both amounts we would need 117k, leaving us with no money to put forward to another property.

Is there anything that we can do? Fixed rate ends in November and would like to move....can anyone or any company help with this situ or are we just stuck in our shoe box mews house forever??

Mrs_Bumble

Have you checked through your original mortgage offer? The terms of the unsecured portion of the loan are probably on a different sheet. Have a look for the original paperwork and then go back to them and ask for further clarification. My understanding of the product was as you describe that the unsecured element could be taken with you but the interest rate jumped up, but I didn't do any together mortgage in 2004 and so maybe the terms were different?? Check the paperwork and go back to them!