Mortgage and secured loan problems

stickman

Hi All,
Took secured loan of 40k a few years back. Mortgage stands at 72k,can pay mortgage back in time. Now the problem. Secured loan ends the same time as mortgage. Both are with NRAM, but would like to extend current mortgage by 6 months which will take me to my retirement date,the secured 40k will be paid off using some of my retirement lump sum.
Need to know
1 Would NRAM consider the 6 month extension on current mortgage
2 If they do agree could I use portion of lump sum to clear the 40k also another option, if mortgage element is clear is it possible to repay 40k over a set period using money from my pension and partners earnings. NRAM would still have a charge on the property andif I did sell they would claim any outstanding balance.
Hope this makes sense advice appreciated.

Thanks

Thrugelmir

Where does the mortgage term end?

stickman

Thanks for reply the mortgage ends Sept 2017

bigadaj

As thrug says timing could be the key. Your plan seems sound, though that's a hell f along period for the loan.

My opinion would be to continue use as you are, and then Raise these options to the lender maybe two years before the end of teh mortgage term. Suggesting this very early could flag up possible strains in your financial commitments, and so cause problems and portray you As a higher risk, higher risk would potentially translate as higher rates. Don't wait until the end of the term as that would show a lack of planning, overall your plan seems fine if its not possible for you to tackle some of the debt before then.

stickman

Thanks All,
OK just a bit more info. Got divorced usual settlements etc, have been paying interest only hence mortgage still at 72 k.
Took 40k secured usual improvement and part settlement.
Hence secured still at 40k.
So if I now start paying mortgage in full to clear by Sept 2017 or March 2018, if NRAM let me, can I take it that part of my lump sum can be used to clear the 40k secured loan. Also what are the chances NRAM will let me pay off 40k over a set period using both my penson and partners earnings to pay for it. possibly over 5 yrs.
Please explain to me again the reasons for not asking/ telling NRAM about this till nearr the time the mortgage is due to finish ie Sept 2017.
Thanks again

Thrugelmir

Just a thought. Any possibility of working beyond your retirement date? Employers can no longer force people to retire.

You'll need to wait until much closer the time for NRAM to commit. They won't make a decision now. This maintains pressure on you to do everything you can to repay. I would clear the secured loan first then the mortgage.

If the time extension is as little as 6 months. Then highly likely they'll play ball. If you provide the evidence to support repayment.

stickman

Thanks ,
Maybe possible to go on beyond 60 but think unlikely.
Why do you say pay secured loan first rather than mortgage would have thought it would be other way round.

Thrugelmir

NRAM could potentially charge you a higher rate of interest on the secured loan than the mortgage.

stickman

Thanks again,
Just thinking though. As mortgage and secured loan are 2 separate entities,how do I just pay, say , mortgage element without NRAM using part of it towards secured loan.
Both interest rates the same so would like to clear mortgage first then the loan using part of lump sum on retirement as previously discussed. Obviously once mortgage is cleared then all monies then go towards the loan.

stickman

stickman wrote: »

Thanks again,
Just thinking though. As mortgage and secured loan are 2 separate entities,how do I just pay, say , mortgage element without NRAM using part of it towards secured loan.
Both interest rates the same so would like to clear mortgage first then the loan using part of lump sum on retirement as previously discussed. Obviously once mortgage is cleared then all monies then go towards the loan.

All,
Any ideas how this can be done.
Thanks

Thrugelmir

stickman wrote: »

Just thinking though. As mortgage and secured loan are 2 separate entities,how do I just pay, say , mortgage element without NRAM using part of it towards secured loan.

Ring NRAM and say you wish to make overpayments on your mortgage account.

NRAM make take payments over the phone by debit card.

Or alternatively provide you with the necessary information to enable you to make payments via online banking.