Northern Rock Mortgage - Advice Needed!

Webbigail

Hi,


I wonder if there is anyone that can give advice on a Northern Rock Mortgage?


We took on our Mortgage 8 Years ago, 100% mortgage and unsecured loan - looking back probably not the best idea, but its done now!


Bought at the height of prices, spent most of our time in negative equity although prices in our area have started to rise.


I have spoken to NR to see if they can help at all with our interest rate but as they are now an asset company they will not look at any mortgages unless you are in financial hardship.


Sorry for the long story! My question is this, can anyone recommend any other mortgage companies that have taken on NR customers? Our property is worth approx. £240K our mortgage is £221K with 23 years left to pay, the unsecured load is £28K.


Help and Advice appreciated.

kingstreet

One option would be to remortgage, leaving the unsecured loan behind. In doing so, the rate will increase to 12.78%, so you need to compare the costs of this versus staying where you are.

At the moment, your secured debt is 92% of the value of your property and you'll need to wait until it drops to 90% or less.

Thrugelmir

Can you afford to overpay the unsecured loan at all. As the best forward is to reduce the debt you owe. Will take time.

Try the Debt Free Wannabe forum for support and advice. Many people in the same position who have had their lightbulb moment.

Webbigail

Hi, we cant afford to overpay, I am trying to look at ways we can reduce our monthly outgoings, hence looking at mortgage rates etc.


Our Un-secured part of the loan has hardly reduced at all over the number of years we have been paying?

kingstreet

Is it over a very long term, or interest-only?

Webbigail

We have 23 years left and are currently on repayment.


Thanks

pcgtron

What's your interest rate?

Westminster

Probably 4.54%

kingstreet

NRAM Together standard rate is 4.79% the same as it's "normal" standard rate with the Together loyalty rate 0.1% lower at 4.78%.

pcgtron

kingstreet wrote: »

NRAM Together standard rate is 4.79% the same as it's "normal" standard rate with the Together loyalty rate 0.1% lower at 4.78%.

That's less than my interest rate on an 80% LTV (although circumstances at the time dictated I could only go with one provider and this will come down in August)

So the OP trying to get an interest rate reduction on 4.78 on a 92% LTV is being very optimistic. Affordability the issue I think

Thrugelmir

Webbigail wrote: »

We have 23 years left and are currently on repayment.


Thanks

I assume therefore that the original mortgage was at least a 30 year term. If you can manage to, hang on. As you will progressively speed up repayment of both the mortgage and the unsecured loan.