advice over what to do with a separate northern rock loan that was tied into my mortg

danieldawson100381

REF: Northern Rock Loan that was tied to a mortgage

To whom this reaches

I would like to ask your opinion on this as we have made a few financial terrible financial decisions and we are trying to rectify all this. In very early 2007 we got a 125% mortgage to pay for the house we wanted and clear the debt we had at the time. I knew I was due a pay rise but at the time I was on 19000 and my fianc!e was on 25000ish. Northern rock wouldn’t give us the full mortgage as our wages didn’t tally up so we got a 25000 loan separate to the mortgage which covered the house and our debts. Looking back this was very lucky as it mean we had just less than 10% in the house. We thought that over a few years the house prices would increase and engulf the loan into the house. Obviously this didn’t happen!

When northern rock was going under we panicked and moved the mortgage to RBS as soon as we could. Looking back if we kept it and road out the trouble this would have been brilliant but we didn’t massive error again. Unknown to us that when we move the mortgage the loan jumps up massively in interest and obviously still over 25 years. I want to move the loan to a 7 or 8 year period which will increase the repayments but get it wiped off quicker. Is that the best course of action do you know if there is any other avenues which I don’t know about i.e. government help for people caught up in the recession? Would this be classed as consolidation? As I am just refinancing an old loan? Our salaries have increased allot so I hope we would be able to do this.

We only have at best 15000 in the house, so a home owner loan is out of the question. How would you address this problem? Would you do it as one loan or 2 separate ones? Also who would be the best company to approach?

I need advice as you can tell from or previous decisions, we are trying to get things sorted and be more responsible. Please help

I look forward to receiving a reply, I will be apply for a loan end of May if I don’t hear back

Feel free to contact me




Many thanks


Daniel Dawson


d[EMAIL="danieldawson100381@googlemail.com"]anieldawson100381@googlemail.com[/EMAIL]

Tixy

I would remove your email address.

If you only have £15k equity in the house you will not get a further loan secured on the house.
If you already have a £25k unsecured loan (do you have any other debts or unused credit) then you may struggle to get any more unsecured loans to move it to.

What APR are you paying on the £25k loan?

Best bet may be to contact the existing provider and ask what APR they would give if you reduced the term of the loan.