Northern Rock Mortgage advice please.

bumblesquat

My partner and I bought a house 5 years ago and we took out a Northern Rock Mortgage as we also needed an unsecured loan to pay off some debts. We now owe just over £88000 on the mortgage and £25000 on the loan. Our fixed rate has just finished and the rate has dropped so we're a little better off but obviously this is only while the rate stays at 4.78%.

I was hoping to be able to remortgage and include the unsecured loan in with the mortgage but this isn't possible as the house isn't worth enough. I have just contacted NR to find out what would happen with the loan if we moved the mortgage and they tell me the rate would increase to 9.78% (ouch). A mortgage advisor has said that he can find us a cheaper mortgage and tie us in a fixed rate for 2 or 3 more years and we'd end up paying approx what we're paying now (for the 2 loans 2.99% on new mortgage) and at least we'd know there weren't going to be any massive increases if the mortgage rate goes up but the loan rate could change. The house is worth approx £120000 now and we have 20 years left on both loans.

Can anyone knowledgeable about such things give me some advice on which way to go.

Thanks in advance x

Thrugelmir

Maintain your mortgage repayment at the old rate. Using the additional overpayments to reduce the unsecured element of your loan.

If you can afford to remortgage. I assume you have savings put aside to pay for this. Use the savings to immediately decrease the unsecured loan.

Better to focus on today and chip away. Than worry about what may happen tomorrow. Over time the situation will improve