NRAM Together Mortgage Advice

servalan

Hi

I am just after someone to look over an idea i have regards my Mortgage / Loan with NRAM.

To start i am not in any arrears, had the mortgage over 5 years and was put with NRAM as it was a together Mortgage.

I am looking at the loan side of it and i am paying £84 a month for it with their standard apr rate for the next 25 years approx. The amount i owe on it is around the £10500 .

Now i am thinking of getting a loan for £10500 paying of the together loan and paying the new loan back over 60 months .

The payments will be bigger however it will be paid of early than keeping it as it is and also eventually give me more equity in the property .

My main questions are

1) Is this a good idea
2) Will NRAM allow me to just pay this to the loan

Thanks for taking time to read

:beer:

kingstreet

As the Together unsecured loan rate (4.79%) is likely to be lower than the rate on a new personal loan, why don't you simply pay the monthly payment you would have paid on the loan to NRAM and pay less interest and pay it off even quicker than you would have done?

Let's say you should pay £84 but instead pay £250. You would repay that £10,500 in 4 years and 3 months, according to this site's overpayment calculator.

servalan

Hi thanks for the reply

I didn't know I could just overpay the loan I thought it would come of both the mortgage and loan

Thanks again

kingstreet

AFAIK you can overpay one, the other, or both.

If in doubt, ask them what's possible.