Northern Rock (Together) mortage fixed rate up.... What now?

A1warrior

Evening all,

I am hoping people can help out with some advice...


I am one of these silly people who thought the together mortgage from the rock was a good idea. At the time I was younger and I naively agreed with the broker I used that this was the best deal for me.


I signed up for an intrest only mortgage fixed for 5 years at 6.49%. I bought a flat for £112k and took an additional unsecured loan for £11k. I was happy to the fact the area I was in was well sort after and was told by the estate agency broker that in a few years it would be worth more than what my total mortgage would be. Obviously this was a grave mistake, one which is starting to take its toll.


I received a letter last week saying that my fixed rate was up and I was reverting to the base rate of 4.78%. Good news for me is that it is lowering my monthly payment by around £150, for now at least...


I have also just received a bonus at work amounting to around 3k after tax and NI.


I have no chance re-mortgaging or selling as the last flat just sold for 89k after being lowered from 115k and after being on the market for a year.


My circumstances have changed as I now have a family and we want to move to house.


I was going to start to save the extra £150 a month, along with my bonus and put it with what I have saved in order to get a deposit for a new house. My thinking was to rent the flat allowing me to hopefully get another mortgage.


But I am still very worried on what to do about my rock mortgage. Renting it won't pay off any capital but paying back £150 extra a month won't put a dent in it...


My main questions are, what is my best option(s)? and what to do with my bonus? Pay off some of the secured/unsecured or put it towards a deposit?


I firmly believe I was missold this mortgage as I discussed nothing about saving to pay the capital at the end of term or the risks involved. However, I signed the dotted line and have to take it as a life experience, a very costly one...


Any advise would be greatly appreciated.


Many thanks,A1warrior