Northern Rock Together - Paying unsecured loan

scotsman78

Hi guys, been lurking aroud for a while and only posted once before - looking for some advice.

I took out a Northern Rock Together mortgage back in 2005 then remortgaged after a 2 year fixed deal in 2007.

Recently bought a new house (7 months ago) and paid off the secured loan but moved the unsecured part of the together mortgage with me to the new property. This is approx £12k over 25 years (same terms as my original mortgage)

Now I'm not blaming anyone here as it's my own fault for not doing more research but when I asked Northern Rock if I could take the unsecured part of the loan with me they said yes - they failed to mention the interest rate would increase by 8% abouve the SVR!

I've now paid 7 months paymets and the balance is still ther same... £12k. I'm now looking to raise the money to pay off the unsecured part of the loan.

I know this is probably a silly question but do you think Northern Rock will accept a slightly reduced payment? ie less than £12k?

The reason I ask is I have managed to raise just over £10k (if the sale of my car goes through) and would like to use this money to pay of this debt as all I'm doing is paying interest.

Anyone tried anything like this before or am I wasting my time?

To add, I have never missed any payments and all my accounts are up to date (no defaults etc)

Cheers

getmore4less

You don't move unsecured to a new property!

I don't think you fully understand what you have done.

Did you change lender for the mortgage?


Doubt they will accept a F&F less than the amount owed, when you ask don't tell them you have the money or they will say no.

If they say no pay of the £10k and the other £2k won't take long if you keep paying the same.

scotsman78

Maybe I haven't explained myself properly :think:

I sold my last house - paid of the mortgage but didn't have enough to pay off the unsecured part of my together mortgage as I needed the money for the deposit in my new house.

I went to another lender for the new mortgage on my new house as Northern Rock were not lending at the time.

What I didn't realise and wasn't informed of at the time was the interest rate on the unsecured loan would go up by 8% - this effectively doubled my monthly payment.

So basically I'm left with a personal loan of £12k over 25 years at 8% higher interest than I expected.

I want to try and clear it ASAP as all I'm doing is paying interest and was curious if there would be any way to negotiate paying a F&F settlement minus the additional interest I've paid since the rate went up by 8%.

Think I already know the answer - but thought I'd ask on here anyway :beer: