Northern Rock Together

foolishqueen

Hello Everyone,

I have just received my offer from NR for their Together product. But I am unsure as how the money is sent out.

I have a secured element of £93,575 on a purchase price of £98,500. The unsecured element amounts to just over £20,000 (pay off existing borrowing). I also have thehelp woth cost options.

What I don't understand is what exactly will my conveyancer request from NR? i.e. will they ask for the whole lot, then pay me the remainder, or will NR send me the remaiming unsecured part after paying the secured part and the remaining unsecured element (deposit in effect)?

Also what happens with the help with costs bit?

Any info greatly received.

Cheers,
Dave.

plymouthscubagirl

Hi Dave

I wouldn't like to say for definite, but I have the same product and it's seen basically as a whole mortgage so you wouldn't need to do anything. If there's any surplus your solicitor will arrange for that to paid (minus her/his fees of course)! Hope I've got that right, as it was the case with mine.

One thing I would say, is make sure you read all terms and conditions as I'm stuck in a 5yr contract with them and cannot get out of that now without sacrificing £5k first. And it doesn't go down each year it's a set figure!!

Tash

Sassers

Hiya :wave: I hope this helps. I got a first time buyer together mortgage with NR just over two years ago. My unsecured amount came to £8k - a little bit under after the solicitor etc took out their fees. When the sale was all done and dusted I got the £8k paid straight into my bank account. I also had the option of when i wanted these payments such as £4k on completion and the other £4kk in 12 months time. Took the lot in one go to pay for the heating!
HTH
Love Sas xx
PS the unsecured and secured get lumped together as one mortgage payment per month but their itemised bills shows what's paid off the secured and unsecured...
Took me ages to work out what was what when I first signed up for it.

wigglygiggly

I 'think' the unsecured part you can have transfered to your account at anytime (whether its the whole amount or part). You can then use it as the deposit on exchange and the fees/stamp duty on completion. Well, this is how I read it as we have the same product.

Congrats on getting the offer though!

Madjock

Usually your solicitor will arrange a simultaneous exchange and completion. When your solicitor requests the funds, s/he will request the secured and unsecured for completion. The help with costs element is also transmitted to your solicitor with the other funds. Your solicitor will send the balance of the funds to you by cheque or CHAPS, depending on what you have specified (you will usually have to pay for a CHAPS transfer).
Bear in mind that you are supposed to have an 8 day cooling-off period from the date that Northern Rock receives the signed agreement back from you for the unsecured element. If you are in a hurry to complete, your solicitor can get this cooling-off period waived.
When you start paying the mortgage, the 1st payment will NOT include the unsecured loan. This is because the unsecured is treated differently under the Consumer Credit Act, and you must have had the unsecured loan for 28 days before a payment can be requested. Usually the 1st payment on the unsecured element is taken with your 2nd mortgage payment.

foolishqueen

All,

Thanks for your replies so far. Much appreciated. I was aware about the cooling off period for the unsecured part, and I did mention to my solicitor about waiving it, but she basically said she wouldn't due in part for them becoming responsible for the debt if I suddenly turn round and decide I don't want it (or something along those lines!) - it's not an issue anyway.

You have all sort of clarified what I though would happen in that the whole amount will get sent to my solcitor, and whatever is left after costs and the cost of the house will be sent to me. I will try and clarify things with my broker come Monday!

Thanks for the congrats wigglygiggly - I was so apprehensive before getting my offer in case NR turned around and said no!

Also, Madjock thanks for that last point - I didn't know that. I assume that doesn't mean they will take 2 unsecured elment payments in month 2??!

Thanks again everyone.

Dave.

georgiasmum

I've got one of these mortgages and they are fab (imo). I was able to buy my first house without a too flash credit report and start my life proper!!!

foolishqueen

Georgiasmum,

I agree. Without it I would not be able to get on the housing ladder. Of course the massive unsecured element spread out over a long term may cause a lot of people to cringe, but as I have been dealing with my debts for quite some time now, I would describe myself as finacially savvy, so it's not a problem.

I can't wait to get a exchange/completion date set!

Cheers,
Dave.

Madjock

foolishqueen

No, it will just be 1 payment of the unsecured, don't worry!

Your 1st mortgage payment will be on the 7th of the month immediately following completion, so 7th Feb. You will get a letter from Northern Rock as well asking you to pay the initial interest part (charged from the date your solicitor gets the money to the end of that month - i.e., if your sol gets the dosh 11/1, you pay interest from 11/01-31/01).

GL for your move.

foolishqueen

Thanks for the clarification Madjock. We should be in in the next 2/3 weeks. Do NR take all their mortgage payments on the 7th of each month then? Can you not change it? I can't see anything in their literature about it.

Cheers,
Dave.

Madjock

Only the 1st payment goes on the 7th, subsequent payments revert to the 1st iirc. Think you can alter the date once the 1st payment is made, ring NR once you've completed.