Dreaded NR Together Mortgage

bexman

Morning all

I originally took out a together mortgage with NR to buy and renovate a house 5 years ago with my o/h. Our fixed rate has now finished and we're paying the SVR of 4.79% (I think).

Fortunately I guess we are not over 100% mortgaged up but I would estimate owing around £158k and the property being worth £165k at a push. We are reasonably comfortable money wise but not comfortable enough to over pay, do you think there is anybody out there who would consider us for a re-mortgage, I am concerned the base rate will jump up and we'll be paying more than our original repayment (which was 6.5% incidentally.)

Any free advice appreciated.

beecher2

No chance I'm afraid. I wouldn't describe your position as 'comfortable' if you can't overpay while on 4.79% to be honest. You need to provide a cushion for yourself for whenever the base rate does go up - it may not happen for a while, but best to be prepared. Can you go onto the Debt free wannabee forum and post a Statement of Affairs? You'll get help there on cutting back on expenditure so as you have savings built up to build up your equity. Also be aware that you may well be in negative equity if you think the property's worth £165k 'at a push' - be prepared for it being worth less.

It isn't all doom and gloom as you should have time to turn your situation round in order to be offered a new deal elsewhere.

lottie2313

bexman wrote: »

Morning all

I originally took out a together mortgage with NR to buy and renovate a house 5 years ago with my o/h. Our fixed rate has now finished and we're paying the SVR of 4.79% (I think).

Fortunately I guess we are not over 100% mortgaged up but I would estimate owing around £158k and the property being worth £165k at a push. We are reasonably comfortable money wise but not comfortable enough to over pay, do you think there is anybody out there who would consider us for a re-mortgage, I am concerned the base rate will jump up and we'll be paying more than our original repayment (which was 6.5% incidentally.)

Any free advice appreciated.

Hi bexman,

We are in similar situation but need to move before the end of our fixed rate. If you house is worth £165k and your secured is 10% less you could change your mortgage but be left with the unsecured. If we did the above we would pay the unsecured back at 13% (7% above our current rate) which is quite hefty. Sounds like you would be best sticking where you are as unless you have a huge equity I doubt you could get a mortgage with an interest rate less than 4.79% good luck!

bexman

Thanks for the advise both! Much appreciated

Thrugelmir

Whilst you may not be able to overpay a large amount. Even starting a minimal amount will start you in the right direction. Interest compounds so the saving will build up over a period of time. As the saying goes from acorns grow oak trees.

I would never suggest that paying down a mortgage should be the all and end all. But cutting back on just one piece of unnecessary expenditure will get the ball rolling.

For example £30 per month would in approx terms knock around an additional £7k off your mortgage in 10 years time. ( If the status quo was maintained). More than likely allowing you greater flexibility to remortgage.

bexman

Thrugelmir wrote: »

Whilst you may not be able to overpay a large amount. Even starting a minimal amount will start you in the right direction. Interest compounds so the saving will build up over a period of time. As the saying goes from acorns grow oak trees.

I would never suggest that paying down a mortgage should be the all and end all. But cutting back on just one piece of unnecessary expenditure will get the ball rolling.

For example £30 per month would in approx terms knock around an additional £7k off your mortgage in 10 years time. ( If the status quo was maintained). More than likely allowing you greater flexibility to remortgage.

Thats great for somebody to put over paying into perspective. Thanks for that, we could definitely afford to over pay even £50 a month so we'll start straight away!