Northern Rock Together Mortgage

Ktd1978

Hi I'm wondering if anyone would have some advice. We have an old Northern Rock together mortgage with an unsecured loan. We have 90K left on the mortgage and 20K left on the loan. We have approximately £155K equity in the property. We have approached a broker and asked about re mortgaging but due to defaults on the credit file following a period of redundancy and poor mental health four years ago but the repayments dont really work out much better other than clearing the £20K unsecured loan. We are caught between a rock and a hard place, stuck on the outskirts of London with high house prices due to work/family commitments and we are brassic at the end of every month due to child care payments, mortgage and well just life. If something happens like the car breaks down it leaves us relying on family members etc to help us out. We really want to improve our circumstances we are cramped in a 2 bed flat. But just dont know whats the best thing to do. Rental prices in our area are extortionate and would be even more than the mortgage we are paying at £900 a month. Cant help but feel tied to this blasted mistake from our past! I know there is a lot of equity, would it pay to sell up, rent if we have to and repair the credit rating? I just dont know.

Please help!! thanks

Hitman12

I am in a simialr predicament and don't know how to get out! My Northern Rock mortgage, nowa Landmark mortgage is a mortgage + loan mortgage and the equity in my property is below the mortgage value so I'm stuck. Is it possible to try and pay off the loan separatley or even re-mortgage? Any pointers very welcome!

Thrugelmir

Ktd1978 wrote: »

We are caught between a rock and a hard place, stuck on the outskirts of London with high house prices due to work/family commitments and we are brassic at the end of every month due to child care payments, mortgage and well just life.

Unless you are able to change something in your life significantly. Then your only option is to grit your teeth and battle on. Set yourselves a longer term goal that's achievable. Then at least you'll maintain the motivation to see the job done. Many of us pay for poor decisions in earlier life that come back to haunt us.

Crumble2018

We were in a similar postion back in 2011. We took the decision to sell our house and pay back some debt. House didn't sell for as much as we wanted, we ended up living with my in-laws for 4 years, and couldn't save enough for another deposit. We have been renting for the last 3 years. We have now been very lucky, and have been given enough for a 5% deposit, and currently have a flat purchase going through. Once we are paying a mortgage again, we'll be no better off than when we originally sold up in 2012 to solve our tight finances, so we may as well have just carried on paying our mortgage!

So I'd say don't do it. Renting really sucks when you've owned your own home, and although we wont be able to afford holidays and other "fun" things, the fact that we wont be at the mercy of a greedy landlord anymore makes up for that!

sal_III

Ktd1978 wrote: »

repayments dont really work out much better other than clearing the £20K unsecured loan.

Some would say that replacing 20k unsecured loan with secured loan as mortgage is actually a downside, but if it's even a little better why not go for it? By your account rents in the area are higher than your mortgage repayment, so what are you going to achieve by selling, apart from slowly but surely eating through your capital, since the monthly outgoings will be higher?

Can you instead increase the term of the existing/new mortgage to reduce monthly payments?

At the very least remortgaging will get you out of a defunct Lender "stranglehold", so you can take advantage of retention products etc. in the future.