Northernrock 'Together' product - will they?

DotNetter

Hi all

I've been in contact with PayPlan in the hope that I could enter into a Debt Management Plan (DMP).

PayPlan have looked at my expenditure based on what my mortgage will revert to when my initial 'interest only' period ends in March and I don't have enough each month to do a DMP or even an IVA! (minimum for the IVA is apparently £100 a month).

My only option now is to remortgage and consolidate my credit cards and personal loans.

I wanted some opinions on whether I'm likely to be offered the deal I need.

My home is worth approx £135k. I currently owe £98 on my exisiting mortgage.

I've been looking at the Northernrock Together product.

Based on combined salaries of my wife and I, we can get a mortgage of upto £108k. As part of the Together product, they offer an additional £30K (max) of unsecured loan on the same terms as a mortgage and same rate (so like an equity release loan but unsecured).

so what I want is to get a mortgage for £98K and then the loan of £30K - this would allow me to consolidate most of my debt and would leave me with just over £8k in addition to the new debt.

Has anyone used Northernrock in a similar fashion? What are my chances?

I would also note that although I have substantial debt I have never missed a payment on any of my debts or current mortgage.

Cheers


Wayne "getting desperate"!

AndyWallace

DotNetter wrote:

Has anyone used Northernrock in a similar fashion? What are my chances?

Subject to income and credit score but certainly possible, and yes, lots of people have done this.

Forgetting all of your unsecured debts for the moment, after you have paid all your household bills and provided a 'reasonable' amount for things such as food and clothes etc, do you have any money left over?

Because if you don't have any now then how can you be thinking about a higher mortgage?

If there is money left over, then this is the amount you use to negotiate reduced payments on a debt management programme.

Andy

payless

Surely if they will lend upto £108K on mortgage , that calculation includes the unsecured amount.

I can see reason behind keeping additional borrowing "unsecured " , although do bear in mind the rate on this type of mortgage is likely higher than you would get on a normal 90% (or poss even 95%) remortgage

Of course this type of arrangement would need very careful considersation / review of how you got there - and likely a change in spending pattern