Don't want to be 'Together' anymore!!

Thrugelmir

If you can afford overpay either your car loan or the unsecured element element of your mortgage. Akin to entering a beauty competition you need to look your best.

MortgageMamma

Hi Kodagirl. If you don't mind me asking, how old are you and what is the term of the mortgage you are applying for? it may be possible to tweek it to increase affordability.

Also were you going to pay absolutely everything off with the remortgage funds or did you intend to keep the loans separate?

I've just noticed you have £3k in savings which could help. Are the loan figures you quoted the actual amount owed or actual settlement figures? The reason I ask is, if you could pay say £3,300 off on of them, then consolidate them all together via a remortgage, it would take you from an 80% loan to value product to a 75% loan to value. That means you are less of a risk to a lender, will get a lower rate so may have better affordability (assuming the term of the loan could be tweeked. Don't rush off and do this its just an idea - You really need a professional mortgage adviser to look at this for you x

MM

Kodagirl

I'm aiming to clear the loan for my car this year, funnily enough. ��
Thank you all for your replies, to be fair, my hunch was the personal borrowing with the unsecured part of my mortgage, not much I can say really, at the time it was a lifesaver, but now it's a shackle, you live and learn eh? Just a bit frustrating, as I've been overpaying the mortgage quite a bit for over 4 years now, and it all seems in vain, but I know it's not.
Thanks again. ��

Kodagirl

MortgageMamma wrote: »

Hi Kodagirl. If you don't mind me asking, how old are you and what is the term of the mortgage you are applying for? it may be possible to tweek it to increase affordability.

Also were you going to pay absolutely everything off with the remortgage funds or did you intend to keep the loans separate?

I've just noticed you have £3k in savings which could help. Are the loan figures you quoted the actual amount owed or actual settlement figures? The reason I ask is, if you could pay say £3,300 off on of them, then consolidate them all together via a remortgage, it would take you from an 80% loan to value product to a 75% loan to value. That means you are less of a risk to a lender, will get a lower rate so may have better affordability (assuming the term of the loan could be tweeked. Don't rush off and do this its just an idea - You really need a professional mortgage adviser to look at this for you x

MM

I've currently cancelled O/Ps on my mortgage, which was £200p/m
Have given up smoking £150p/m
Combine those 2, use £2k of my savings, continue with car loan payments, and complete for dec this year.
I'm 39 in June, I got a 30 year mortgage, just under 20 years remaining,i was thinking of continuing the length of term.
Mortgage application, was going to include unsecured mortgage loan amount.
Once car loan, complete, £600 p/m ops on mortgage,
Amounts 'are owed' not settlement figures.
Not sure my sig is clear enough, my car loan is £9094 owing, top figure is what I borrowed, £95,731 is mortgage inc unsecured loan part. x

MortgageMamma

From what you've said, I consider it completely doable, but I think in terms of affordability it could be the car loan letter you down. What are the monthly payments on that? Perhaps if you considered adding it to the loan then making overpayments to pay it off faster it could work better for you in terms of how a lender looks at your affordability. Obviously the figures would have to be done properly and you'd have to be comfortable with losing 10k of your equity, but you could still have a 75% ltv mortgage. Regarding the mortgage term - one option could be to extend it officially to make it fit affordability but overpay it to the extent that the capital would reduce quickly enough to enable it to be repaid on or around the original 20 year term?

Kodagirl

I pay £293.37 a month on the car loan.
When I was at the Nationwide, they did mention about incorporating the loan with the mortgage, but I said I would rather keep it separate, I've tried so hard to get my mortgage debt down, and with there fixed product, I would have been saving £100 on my mortgage repayments straight away, car loan was due to finish well before end of fix product. Even though Ive still got 20 years,left of my current mortgage, there is no way I intend on having it that long. ��

MortgageMamma

You need someone to hammer the figures out for you to see if you can keep the loan running alongside it. I can understand why you'd want to do that as you aim to pay it off quicker and no pay interest on a car loan for the next 20 years. What you need to ask for (I'm assuming your going to speak to a broker here) is a projection of your finances now with your overpayments, then one with the mortgage and loan separate with the option of paying off the loan this year (that's assuming you will be permitted to do that by your mortgage lenders underwriters) and a projection of having it consolidated with the mortgage and the amount of overpayments you'll need to make and when to make the consolidation cost efficient and pay it off faster anyhow. That way you can see which route will work in terms of actually getting the remortgage and try and find the optimal way off getting the car loan paid off. Your current level of financial discipline seems to have paid off though as you have gone from 125% mortgage to a 85% even without the consolidation, that is quite an achievement

Kodagirl

Thank you so much for your words of encouragement, Mortgagemamma, it's been quite a slog, every time my yearly mortgage statement comes through, I scrutinise it, and feel like I'm not getting very far, although when it went to under £100k I was doing a merry dance!! ��
Never had an overdraft, never had a credit card, and now I'm wishing I didn't have this bloody loan, but I needed a car, my last one I had for 10 years, every year it cost me more and more to get it through the mot, I've got 4 large dogs, so I can't be without one, especially being on my own.
I think I'm gonna hold fire, re: mortgage, concentrate on this poxy car loan, then this time next year, go into a brokers all guns blazing, I've had this mortgage 10 years, 1 more isn't going to hurt!! Hope you don't think I've wasted your time. x

lexingtons

Hi,

I've just completed my re mortgage finally leaving NRAM and together mortgage in the past. I couldn't help but notice some similarities between our situations. I took my together mortgage out in 2006, 106,000 for my property and 23,000 loan.

What I ended up doing was making over payments to start with hammering the unsecured loan, once I had my loan down to a certain amount I transferred it onto a 0% credit card. I also have a car payment which I make.

I tried to arrange my own re mortgage and failed with 4 separate companies, each one for different reasons, one was because my partner had a poor credit rating (no credit check done...company just refused to progress despite the mortgage being in my name only). Second company said affordability (despite the new deal being £100 cheaper than NRAM and I had made payments for 10 years with no issues), third company said they would not provide mortgage for my type of property and fourth said the valuation report showed I did not have enough LTV for the mortgage product. Crucially out of my 4 attempts only one company did a credit check as numerous checks will damage any future application.

I used L&C to process my successful application they have access to a large amount of deals, not all but enough to get a very competitive deal and their fee is paid by the lender so it's free. I found this company to be fine in all honesty.

I was advised that my car loan which is double your own...was nearly a deal breaker in L&C's opinion and our incomes also appear to be very similar. I can't help but think your 2nd loan is playing a part in this, lenders are only interested in the minimum payment you make on a credit card which is normally much smaller than the loan repayment figure. In addition to this a credit card is obviously a different debt to that of a loan.

In summary from me, I would explore ways to eliminate the unsecured loan potentially putting your loan on 1 or 2 0% credit cards, use a company that has access to numerous mortgage lenders and understand they all have their own set of rules. My LTV ended up being 90% so I only just scraped into this new mortgage which is now 2.75% rather that NRAM's shocking 4.5% SVR.

I hope this little story shows just because one says no it doesn't mean they all will, good luck, I know how frustrating it is to be stuck in the NRAM nightmare.

MortgageMamma

Kodagirl wrote: »

Thank you so much for your words of encouragement, Mortgagemamma, it's been quite a slog, every time my yearly mortgage statement comes through, I scrutinise it, and feel like I'm not getting very far, although when it went to under £100k I was doing a merry dance!! ��
Never had an overdraft, never had a credit card, and now I'm wishing I didn't have this bloody loan, but I needed a car, my last one I had for 10 years, every year it cost me more and more to get it through the mot, I've got 4 large dogs, so I can't be without one, especially being on my own.
I think I'm gonna hold fire, re: mortgage, concentrate on this poxy car loan, then this time next year, go into a brokers all guns blazing, I've had this mortgage 10 years, 1 more isn't going to hurt!! Hope you don't think I've wasted your time. x

Hi there, you have the right attitude to sorting your debt - I know what you mean about old cars, I used to collect classic range rovers and do them up and sell on. At the moment I drive a massive old Izuzu Bighorn import, its fuel hungry and costs me more every year - but I need it for my extremely muddy dog and my son plays rugby and gets in car looking like he's been dropped in a vat of mud! :rotfl:

I give my time on here for free, its a win-win situation I help people whilst learning about different peoples "situations" - in this job, things change all the time and forums help broaden ones perspective to "think out of the box"

Good luck paying the car loan off x

MM