Northen Rock (NRAM) Mortgage and Secured Loan (picture)help

poohwithmoney

Hey,

Sorry if this is a huge ramble.

I took out a together mortgage on a one bed flat in 2006 the mortgage was for £88000 and the loan for £27,000 so total loan was £115,000 (interest only). I then stupidly in 2007 took out a picture secured loan for £36,000 with payment protection (very young and very stupidly listened to the boyfriend i had at the time). Anyway fastforward to now and I let the flat out at a loss as i can't afford to live there and now stay at my parents. The fixed rate on the mortgage has come to an end and NRAM won't fix again.
I actually have hardly any money despite having £1945 a month as i'm paying back £905 to the loans on the flat (all though they haven't gone down). I then have to pay £500 back on other debt. House keeping to my parents of £200 and then £150 travel to work. I only make £390 a month by letting the flat and on top of that i have to pay £55 maintence and £20 ground rent.
My parents are elderly and want to move and now i'm panicking.
Ideally i want to just get rid of the flat it's only worth £107,000 so by selling it, it won't cover clearing the secured loan and the togeather part of the mortgage. Does anyone know if i can just sell the flat for what i can get and then come to an agreement to clear the rest of the money owed!!.

Thanks
x

Wickedkitten

Have you actually had it valued properly? I highly doubt that if you bought it in 2006, that it has only lost 8k off the actual value. Unfortunately, I doubt that Picture are just going to let you sell the flat because it's a loan that is secured on the property. Northern Rock would let you sell the house and then convert the loan part to a regular loan but it would be for more interest than you have on the secured loan.

SimbaSimon

poohwithmoney wrote: »

Hey,

Sorry if this is a huge ramble.

I took out a together mortgage on a one bed flat in 2006 the mortgage was for £88000 and the loan for £27,000 so total loan was £115,000 (interest only). I then stupidly in 2007 took out a picture secured loan for £36,000 with payment protection (very young and very stupidly listened to the boyfriend i had at the time). Anyway fastforward to now and I let the flat out at a loss as i can't afford to live there and now stay at my parents. The fixed rate on the mortgage has come to an end and NRAM won't fix again.
I actually have hardly any money despite having £1945 a month as i'm paying back £905 to the loans on the flat (all though they haven't gone down). I then have to pay £500 back on other debt. House keeping to my parents of £200 and then £150 travel to work. I only make £390 a month by letting the flat and on top of that i have to pay £55 maintence and £20 ground rent.
My parents are elderly and want to move and now i'm panicking.
Ideally i want to just get rid of the flat it's only worth £107,000 so by selling it, it won't cover clearing the secured loan and the togeather part of the mortgage. Does anyone know if i can just sell the flat for what i can get and then come to an agreement to clear the rest of the money owed!!.

Thanks
x

Very unlikely your be able to sell the flat unless you can pay off the secured loan on it first. If your parents are considering moving could you perhaps look at house shares, ideally close to your work location? Depending on the location it may not work out much more then the £200 your paying to your parents plus the £150 travel expenses.

Also, get yourself over to the debt free wannabes forum if you haven't already. Do a full statement of affairs and they might be able to see what you can cut back on.