northern rock together mortgage

middy60

hi all newbie here,i currently have a northern rock together mortgage and me and my partner have decided to sell our 1 bed flat and ger a bigger place,anyway does anybody know when we sell and pay the mortgage back do we have to pay the unsecured loan part back or can we just keep it and pay back as a loan as we was planing to use any extra from the sale towards the deposit for our new home
thanks

Trig1903

Hi, I think it is possible to keep the unsecured loan on it's own but I'm pretty sure it will revert to a much higher interest rate (should be in your paperwork that you got when setting up the mortgage/loan). I also think it's possible to port the entire Together product that you have to a new property were that to prove a cheaper option than new mortgage plus unsecured NR loan at the higher interest rate.

This is all just from the top of my head by the way as it's a product I've used in the past and your best bet is to contact Northern Rock re what would happen with your loan plus a whole of market independent adviser for advice.

peterg1965

I have had a Together mortgage in the past. I paid off both the secured and unsecured elements when I sold my house. I think that Trig1903 is correct, you could probably not pay off the unsecured part but it would revert to a higher rate of interest and may even remain on a variable interest rate which is not good.

My advice would be to pay of both parts of the loan when you sell your house and start afresh with a new mortgage. However, if that leaves you with insufficient equity for deposit on your new home you could consider refinancing the unsecured element of the Togther product with a personal loan from another provider at a competitive fixed rate of interest. The best ones are as low as 5.8%. This clearly depends on your circumstances.

chivers1977

My offer said that the unsecured bit reverts to 14% ish if you don't pay it off. Not good..............