How does my mortgage work?

dazz25

Hi,

I took a mortgage out in early 2007. It was a 100% mortgage at the time (I know, I've learnt my lesson!).

My question is, the statements from the lender show our mortgage at 90% and the rest as an unsecured loan. if we were looking at moving/re-mortgaging is the loan included or is this completely separate?

So to keep it simple (for me!) would we re-mortgage the 90% and continue paying the loan separately or would the loan need to be repaid at the same time as the mortgage?

This is a hypothetical question as we don't plan on moving anytime soon but it's just something that I think about from time to time and would like an answer!

Thanks in advance

Thrugelmir

Is your mortgage with Northern Rock?

Let_Us_See

Oh dear......you have had this mortgage since 2007 and still don't understand it????? Why didn't you ask these questions when you took out the mortgage?

To keep it simple the answer is 'no'. You cannot redeem the mortgage and continue to repay the loan.

Thrugelmir

Let_Us_See wrote: »

To keep it simple the answer is 'no'. You cannot redeem the mortgage and continue to repay the loan.

In certain instances you can. However the rate of interest on the unsecured loan element rises considerably.

Let_Us_See

Agreed.....in principle it is possible. However, in my experience lenders have always declined.