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Northern rock together mortgage loan

allthe7s
allthe7s Posts: 187 Forumite
Sixth Anniversary 100 Posts
I have been thinking on and off for a few weeks about this and thought I'd ask for some opinions.

So we bought our house in 2007 with no deposit using a northern rock together mortgage so 30k unsecured loan on top of a 95% mortgage.

10 years on the loan balance is 25k. The interest rate has always been the same as the mortgage (6.79% for the 1st 5 years and 4. Something since then)

Northern rock went belly up days after our 1st mortgage payment was taken and we have been under NRAM since then. They do not have any deals and they do not sell products so we cannot remortgage with them or stay with them when we move house

However our t&c state that if we leave them for our mortgage then the loan interest rate goes up to 14.9%

Do you think we have a case to try and get either a. The loan wiped (dream solution lol) b. The interest removed. C. The interest kept at the 4.something rate.

Due to the fact that we are actually unable to stay with NRAM due to us moving house? Or am I just being ridiculous?

7s
Preparing to go bankrupt April 2020

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,383 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    A. No
    B. No
    C. No
    D. Yes.
  • glosoli
    glosoli Posts: 739 Forumite
    Eighth Anniversary 500 Posts Combo Breaker
    How much equity do you have in the property? Is it possible either to clear the loan off from the equity of the sale if you were to move, or to remortgage to another provider and consolidate the whole borrowing into one account, on a better rate of interest?

    They are most certainly not going to reduce the borrowing in any way.
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