Mortgage Conundrum

BaronB

Hi chaps

Wondering if someone could help us. We're tied in to one of those 125% Northern Rock mortgages. It's made up of 75% mortgage and 25% loan. It's variable and is worth £99k though our house is only worth £95k.

We want to transfer but we're in negative equity.

Can anyone advise?

Thanks in advance.

Wutang_2

BaronB wrote: »

Hi chaps

Wondering if someone could help us. We're tied in to one of those 125% Northern Rock mortgages. It's made up of 75% mortgage and 25% loan. It's variable and is worth £99k though our house is only worth £95k.

We want to transfer but we're in negative equity.

Can anyone advise?

Thanks in advance.

You want to transfer what?

75% + 25% = 100%......are these amounts correct?

If you wanna remortgage, best start overpaying a-s-a-p :A

maninthestreet

Start overpaying!

BaronB

Thanks, guys. We are overpaying. We wanted to change the mortgage but think we're tied in at least for the forseeable.

Out of interest - are 125% mortgages being looked at in terms of mis-selling or is it just interest only mortgages?

DannyboyMidlands

Compo! Compo! Compo!

kingstreet

The property is worth £95k? Is that a realistic value for a sale or an estate agent's marketing price?

What is outstanding on the secured element of the plan? £

What is outstanding on the unsecured element of the plan? £

A Together product was a perfectly legitimate way of borrowing. You could have had a 95% mortgage and unsecured credit with other lenders at higher rates. Together has given you lower costs than you would otherwise have had, compared to alternative credit sources. Buyer remorse and a fall in property values are not grounds for complaint.

potatoefeet66

Your negative situation is not that big is there anything you can do i.e. referb or other to increase value that will sort that out.