Northern Rock Together Mortgage

shopaholictiedtheknot

Can anyone tell me if it is possible to get one of these mortgages and use the loan part to pay off existing loan commitments? - is this how it works?

andrewbrydon

Yes you can pay off other commitments. This part is NOT secured on your home.

You can borrow 95% secured and upto £30k unsecured at same rate and can be interest only or repayment

Andrew

shopaholictiedtheknot

Am i right in thinking I would need a 5% deposit then?

andrewbrydon

NO. You can use the extra borrowing as deposit

EG

£100,000 purchase price

£95,000 on secured mortgage
£15,000 on unsecured

£5,000 is deposit and £10,000 to you for other purposes

£110,000 total mortgage. One payment



Andrew

shopaholictiedtheknot

Thanks very much for your help, that is good to know cos we are desperate to get on the housing ladder but do have some debts to pay off and I was beginning to think it would be impossible! Hubby has just started new (better paid) job so I can see light at the end of the tunnel now!

AndrewSmith

What sort of debts are they? How much are they costing and what are the rates?

Attaching them to a 25 year loan may actually be financial suicide if not carefully considered. Sometimes the Northern Rock Together mortgage is sold as too easy an escape route from debt when actually it is saddling the client with a much larger debt in real terms when you consider the length of time over which you will be repaying the same debts.

Post some figures and lets look properly at this for you.

Andy

shopaholictiedtheknot

A cahoot loan, a northern rock one and a credit card, thing is I am 37 and I want to buy a house sooner rather than later especially as hubby and I are wanting to try for a baby this year (something I definitely cant wait to do as my bio clock is ticking!) I plan to return to work afterwards so income would be the same (minus obvious child costs) My hubby is 30 this year and just started working in the family business which will increase our income too.

I do understand your point but I feel I want to get on the housing ladder ASAP