Together Mortgage Unsecured Advice

lauraeast23

Hi

I have a NRAM together mortgage, currently around 105k on secured and 24k on unsecured. Approx 129k total.

I have my property on the market at negative equity (OIEO 110k) so once sold (eventually) as we all know the rate on the unsecured part that is left will go up, in my case by 8% on top of current SVR.

I currently have a Barclaycard with around 10k, some of it is on 6.9% for life and the rest on 12.9%.

I also have a loan of 9k that i had to take out to extend the lease on the property, loan rate 6.6%

My question is this, I have just been approved for an MBNA 0% for 18 months on BT (2.8% fee) or transfer to a current account (4% fee).

So I could either BT the CC or pay down some of the unsecured part of the together product so that I dont suffer so much on the rise in the rate, esp as the SVR rate is bound to also increase this year, increasing the rate even further.

Thought please....

Thanks all

BadgerFace_2

it's VERY important to think of the follow on rate here. You'd be potentially giving up a rate of 12% ish on the unsecured loan, for 12 months at 0%, but then potentially 19.9% and even higher when they feel like raising it. Unless you can have it repaid in 12 months (which it doesn't sound like you can), then it could cost you massively in the long term.

You may be able to get a new 0% card every year, but I wouldn't rely on it...especially if you're no longer a homeowner by then.