Mortgage & Loan Help

Kbaby

Hi everyone

Looking for some help. We took out our mortgage and an unsecured loan with the same company, the loan was to get us up to the total needed for the mortgage. Taken out in 2008.
Would we be able to make overpayments to only the loan?? To try and pay it off. We have approx. £4,500 to pay to the loan and there are no early repayment charges. The term of our mortgage and loan is 35 years and we obviously want to decrease that. Ive just been reading up on all the amazing threads recently and want to try and get the ball rolling.

Thank you in advance for any help

Froggy-G

Thats the exact situation we are in, and at the moment we are overpaying the unsecured loan part of it. You would be best to call your mortgage provider and ask them the question directly. We make our overpayments by cheque through the post with a letter detailing that we want the overpayment to be applied to the unsecured loan.

Hope this helps

Froggy :cool:

Kbaby

Glad to hear someone else in the same situation. So hopefully it can be done, I will check though. So froggy, do you pay the overpayment to them every month??

K

Froggy-G

Yes I make the overpayment every month to N-Ram (ex Northern Rock), and tell them to put it against the unsecured loan.. We should pay off the unsecured loan sometimes in October, so after that we will attack the rest of the mortgage and we will be able to make the overpayments online, which will save a lot of hassle..

Froggy

Kbaby

Thats what we would like to do. Thanks for your help Froggy and good luck

Kbaby

Rang the mortgage company who explained we can overpay on only the loan as long as we send a covering letter explaining what the overpayment is for. We can overpay by 10% per annum. Lets get the ball rolling and get this paid!!