End of NRAM 5 year deal

mollysue23

Hello

My 5 year deal with NRAM is due to end next month...Hoorah!!!!

I currently owe £63,000 in total which is made up of £59,000 secured and £4,000 unsecured. My current month payment is £470 at 6.7%

I would like to make overpayments but don't know which part to overpay.

I am currently in negative equity by about £9,000 but in 3 years time my OH will receive about £40,000 divorce settlement. We would like to buy a larger house once his outstanding debt is paid off which would leave us with approximatley £15-20k for a deposit.

So, would I be better off overpaying on the mortgage to try and get the negative equity down or over pay on the loan (which I know the APR will increase on if I don't settle in full)?

Many thanks

Thrugelmir

You'll need to clear the unsecured loan when you apply for a new mortgage. So might as well start with that. If nothing else it'll look good on credit reports as well.