Northern Rock Together Mortgage - Question....

craigbroadman

I know that there is another Northern Rock thread, but I have a specific question.

We took out a fixed rate together mortgage in September 2006. As we were concerned about interest rates rising we fixed in for 5 years along with the plan that we would probably move house after around 5 years too.

The mortgage was for around £115,000 and the loan around £12,000. Interest rate is 5.89% i think....

We have made improvements to the house but I guess we are still in negative equity.

I am not sure but I have an inclin that the mortgage advisor said that although it was a fixed rate for 5 years you can switch (without penalty) after 3 years if you want to?

My questions are:

1. Can we switch without penalty?
2. If we find some money from somewhere to push us in to positive equity would we be able to get another mortgage? Say LTV at 85% or 90%?
3. What other advice have people got?

Massive thanks in advance...

Mrs_Bumble

Have you got your original offer paperwork?

It will say in the Early Repayment Charges section how long they are applicable for.

dimbo61

If you can find some money then overpay the loan and once thats cleared then overpay the mortgage.
You have security for another couple of years and do you really have to move?
Its very expensive and you have little or no equity.
Putting a new kitchen or bathroom will add very little to the value but clearing some of the debt will decrease your debt and increase your equity.

craigbroadman

I have got the original paper work somewhere in my files, I will have to fish it out.

The dilemma we have is that we are getting married in October 2011 aswell, hence most of what we can actually save is being ploughed in to the wedding fund.

Clearing the loan part in the next 2 years will probably be a struggle, unless we get some serious pay rises (which is unlikely).

Did I also read that they will no longer switch NR Together mortgages on to the SVR anymore?


Is it worth getting some professional mortgage advice again?

dimbo61

Find the paperwork to see what your mortgage reverts to at the end of the fix but I would guess you are better off just saving for the wedding and then overpaying the loan ( first) and then the mortgage and with luck the housing market might be better in 2 years. GOOD LUCK

luckyfool

northern rock 5 yr fixed rates dont have such a feature to the best of my knowledge, and didnt have it either 3 yrs ago.

Leela_G

Sorry to hijack your thread craig.
Does anyone know if it is possible to clear the mortgage part of the together mortgage and then keep the loan going, obviously changing it to a shorter period of time. As this is an unsecured loan it will not be tied to your property?

sdooley

leela, think you can do that but they increase the interest rate on the unsecured part. It's all in the T&Cs.

Leela_G

sdooley wrote: »

leela, think you can do that but they increase the interest rate on the unsecured part. It's all in the T&Cs.

Thanks, has anyone done this? Where N Rock ok?

Nonshy

craigbroadman wrote: »

I know that there is another Northern Rock thread, but I have a specific question.

We took out a fixed rate together mortgage in September 2006. As we were concerned about interest rates rising we fixed in for 5 years along with the plan that we would probably move house after around 5 years too.

The mortgage was for around £115,000 and the loan around £12,000. Interest rate is 5.89% i think....

We have made improvements to the house but I guess we are still in negative equity.

I am not sure but I have an inclin that the mortgage advisor said that although it was a fixed rate for 5 years you can switch (without penalty) after 3 years if you want to?

My questions are:

1. Can we switch without penalty?
2. If we find some money from somewhere to push us in to positive equity would we be able to get another mortgage? Say LTV at 85% or 90%?
3. What other advice have people got?

Massive thanks in advance...

what are you looking to switch to?

NR won't be able to offer you another deal.... even if have equity in property.

Nonshy

Leela_G wrote: »

Thanks, has anyone done this? Where N Rock ok?

NR are absolutely fine with this although repaying secured and leaving unsecured results in a loading of 3/5/8% above svr (4.79%)