Paying off mortgage with Northern Rock

80schild

Hiya
I (stupidly) took out 115% mortgage with Northern Rock in 2006. Of course now the house has fallen in value too.
We have sold it to cash investors for £30,000 less than the total mortage still on it so we can buy a new property.
We are lucky enough to have over £40,000 gifted to us by mine and my husband's parents to cover the money owed to Northern Rock and the deposit for the new house.
My question is, will Northern Rock be ok with this repayment if it does not all come from the sale of the house? Also the mortgage was only in my name but it is my husband's parents who have gifted us some of this money to pay it back.
I have bank statements and letters to prove where the money came from and that it is a gift.

Will Northern Rock accept this or is all the money expected to come from selling the property itself?
Thanks

TrickyDicky101

Assuming the payments won't fall foul of money laundering legislation (and NR accept this) I wouldn't have thought they would care where it comes from - people in negative equity like yourself would be completely stuck otherwise.

getmore4less

Pay it off the mortgage now and the remainder when the sale goes through, save a bit of interest.

After costs you won't have much of the £10k left for a new place.

silvercar

Tell northern rock that you have enough to clear the mortgage but not enough to clear the unsecured loan, but that you have a family member who is prepared to offer a one off payment of say half(?) the unsecured loan as full & final settlement provided that (a) it is accepted as a F&F settlement and (b) it is shown as fully satisfied on your credit record. You may be pleasantly surprised. NR Together mortgages were often 95% secured and 20% unsecured, so you could potentially save thousands.

Burridge60

Have a look at the back of your mortgage offer and the unsecured loan agreement as there is a clause there which says they can charge you about 5% over their Together variable rate if you repay your secured mortgage and retain the unsecured loan.

You could try it on as the loan and the mortgage you have are most likely with the NRAM part of NR and they are very keen to get their money back and offload their mortgage book if they can.

80schild

Hiya
I should have thought to pay the 30,000 off as soon as we got the money but we are coming close to completion now!
Using our own savings for fees etc.. . Paying the whole loan back, not just the secured part!