Could anyone please explain our Northern Rock Together mortgage

loubylou1982_2

Hi,

My husband and I took out a together repayment mortgage in 2006. It is fixed for 5 years ( due to end March 2011).

Our house cost 103,00 & when we took the mortgage out we had 90,000 mortage and 13,000 unsecured loan.

We are both pretty clueless when it comes to mortgages and I am trying to get my head round it all. :eek:

I know northern rock are not offering mortgages like this anymore so when out fixed rate deal ends we will go on to a standard variable rate.

what im trying to understand is..... if we try to switch our mortgage to another lender is it just the mortage part we will need to switch ( and therefore continue paying northern rock for the unsecured part (if this is even possible)) Or its it treated as one amount i.e 113,000.

I am aware that these type of mortages are long gone and i just want to point out that at the time it was the only mortgage we could get and in the last 4 years we have never been late/ missed a payment.

If anyone could explain it to me a bit more i would really appreciate it???

_Andy_

You could do either, if you had enough equity in your home.

If you change just the secured bit (the £90k that is), Northern Rock will up the interest rate of the unsecured (£13k bit) - can't remember by how much but I'm sure it's quite high.

Hard to tell you what your options are without a realistic figure of the home's value but it would certainly be a good idea to overpay as much as possible on the mortgage if you can (easier said than done I know!)

loubylou1982_2

_Andy_ wrote: »

You could do either, if you had enough equity in your home.

If you change just the secured bit (the £90k that is), Northern Rock will up the interest rate of the unsecured (£13k bit) - can't remember by how much but I'm sure it's quite high.

Hard to tell you what your options are without a realistic figure of the home's value but it would certainly be a good idea to overpay as much as possible on the mortgage if you can (easier said than done I know!)

Hi, thanks for replying.

Im guessing (based on 3 very recent sales in my street) that our houese in now worth 115,000 maybe a little more.

VIGILANT22

As Andy explained NR Together mortgages are in 2 parts.

The secured part could only be taken up to max 95% value of the house, but not in all cases depending on yr income. If your income fell below lending policy the difference was made up thru an unsecured loan.

All this will be explained in your correspondence from them, take time and sit down and read it....what you're not clear on post on here and hopefully someone will explain..

_Andy_

OK so what that means is that you could possibly be able to change lenders when the fixed rate is up - but you wouldn't be able to pay off the unsecured loan in full.

What you'd need to to then, is to get a good mortgage adviser to do some number crunching to see if it would be worth switching (i.e. getting - hopefully - a better mortgage rate elsewhere whilst taking the knock of the unsecured loan going up) nearer the time.

MrsWILLIAMSCASTLE

Hi I am new to this money saving but i am also on the together mortgage

we took it out in 2006, it was fixed for 2 years, house value was 125,000 the mortgage with loan was 130,000

after the 2 years we searched and searched but no 1 would touch us as we owed to much ,we was advised to pay off as much each month as possible,we now have paid off the loan side and owe 110,000 & are still; struggling to get a remortgage.

Northern Rock advised us to re mortgage (easier said than done)and leave our loan with them but the rate on the loan would go up to around 10-12% if i remember rightly, so we overpayed every month cleared the loan and trying our best to pay off the mortgage .

Sorry i havent been much help but basically NR are useless & the only advise i have been given is repay repay repay

LadyLawyer

MrsWILLIAMSCASTLE wrote: »

Hi I am new to this money saving but i am also on the together mortgage

we took it out in 2006, it was fixed for 2 years, house value was 125,000 the mortgage with loan was 130,000

after the 2 years we searched and searched but no 1 would touch us as we owed to much ,we was advised to pay off as much each month as possible,we now have paid off the loan side and owe 110,000 & are still; struggling to get a remortgage.

Northern Rock advised us to re mortgage (easier said than done)and leave our loan with them but the rate on the loan would go up to around 10-12% if i remember rightly, so we overpayed every month cleared the loan and trying our best to pay off the mortgage .

Sorry i havent been much help but basically NR are useless & the only advise i have been given is repay repay repay

You're right that NR can be pretty useless and there was some irresponsible lending going on for sure - but you can't blame them because you borrowed more than the house was worth!

FCRangers

Same here, so you can overpay as much as you like on the unsecured loan part of the together mortgage?