NR Fixed rate ending what options do i have

katie310185

I took out a NR together product (secured 95 percent and 5 percent unsecured) two years ago at the peak. the unsecured part is on the same rate as my mortgage 7.19 fixed until sep 2010 if i decide to move away from NR i am only obliged to pay the secured part off however if i dont pay the unsecured part off they put the rate up to thier standard personal loan rate ie 15% rather than keeping it at what your mortgage rate was. My 3 year fix rate finishes next sep we borrowed exactly100% 152k (144 secured and 8unsecured) our mortgage is 1000 per month repayment but we have ploughed 500 per month overpayment 1500 a month in total for last 2 years into it to try and clear some ltv. we choose the overpayment to be taken off of the unsecured part so when our deal ends we will only have the 95% secured part left. our LTV would have been much lower with all the overpayments however drop in house prices mean although our motgage gone down 15k so did the loss on property so still owe 95 % again

However i dont think i will be able to get a new deal with any one else as loan to value still very high 95%. but NR say they are not offering new deals to existing customers so am i stuck with them on thier STR until we clear more LTV.

Any advice will be great coz we trying so hard overpaying so much and getting no where

katie310185

ps we bought property for 152 and now worth 140.
we got mortgage for 152 overpaid like hell and now owe 140 but due to house price fall still 100%

Joe_Bloggs

The Northern Rock SVR is 4.79% at present. I am sure that with your continued overpayment strategy and an eventual lower rate, you will get to a better LTV position.
J_B.

dimbo61

Hi Katie
If you can overpay on the loan and try to clear that asap!
Your mortgage will revert to the SVR but the loan part could go up much higher !!

katie310185

thank JB so thats my only option then really? to stay with them and keep overpaying to reduce LTV im just worried NR SVR wont be around 4.7 by next sep im worried it will be more than the 7.2 im currently on.

katie310185

thanks dimbo61 the unsecured part will already be aid off by next sep but ill still have the 95 % secured ortgage remaining and dont think i will get deals elsewhere think im stuck with NR