Am I stuck in Northern Rock Mortgage...?

dave1888

Hi,

Sorry if answered before I didn't see any posts that exactly covered this.

I seem to be stuck in NR repayment mortgage (fixed rate 6.79% until Sept12), and wanted to see if I could move mortgages but as I have a mortgage of £150k with £10k secured loan I'm told no one will lend (compared to a £32k pa salary).

I took the mortgage in around 2008 so am now stuck with a high repayment of 900 quid a month. Luckily house is still valued at around £190k but I obviously don't want to sell at the moment.

But it doesn't seem as if I have any options? Is that right or anyone able to suggest any ideas?

Thanks

kingstreet

If your credit score is high enough, both Halifax and Abbey will lend upto 5x gross annual. However, if you owe £160k plus the early repayment penalty this may still not be enough. Other credit commitments and dependents will reduce your maximum too...

Spoken to a broker?

dave1888

Thanks. Just to the moneysupermarket ones that ring you back and they were fairly pessimistic that anyone would pick it up with the secured loan.

One positive is that NR are waiving the early repayment fee at the moment tho

picardygirl

Northern Rock or Northern Rock Asset Management ........ if the latter, they are not charging early repayment charges.

kingstreet

dave1888 wrote: »

Thanks. Just to the moneysupermarket ones that ring you back and they were fairly pessimistic that anyone would pick it up with the secured loan.

One positive is that NR are waiving the early repayment fee at the moment tho

How do you mean? You don't want to pay off the secured loan? Otherwise it's just a remortgage of £160k on £190k?

picardygirl

dave1888 wrote: »

Thanks. Just to the moneysupermarket ones that ring you back and they were fairly pessimistic that anyone would pick it up with the secured loan.

One positive is that NR are waiving the early repayment fee at the moment tho

Sorry our posts crossed .... only Northern Rock Asset Management are waiving fees at the moment not Northern Rock.

Thrugelmir

Live on baked beans on toast, and attack the mortgage/loan balance. As making overpayments at that rate of interest will make a difference over time. No easy answers.

dave1888

Thanks all.

Yes it is NRAM so no repayment fee being charged.

Yea I would like to pay the loan off but seems to make more sense to pay it off in one go as paying anything off in lumps doesnt make any difference to monthly repayments.

I have around 6k in savings at the moment, I guess it depends on the best place to put those. But I think it looks like I would struggle to get a better mortgage deal at present.

Thrugelmir

dave1888 wrote: »

Yea I would like to pay the loan off but seems to make more sense to pay it off in one go as paying anything off in lumps doesnt make any difference to monthly repayments.

Making overpayments will make a difference. Every month you'll pay slightly less interest and more capital. A mortgage is a long term commitment and needs to be viewed as such. You only need to repay it once though.

Have you considered a taking in a lodger to help pay the mortgage?