Northern Rock 125% mortgages

strawb_shortcake

Can anyone explain how these worked please? 

I know someone that had one, I'd always assumed the mortgage and loan was one repayment but now they've come to sell it's come out that there was a loan sold to lloyds and since been sold on again - I'm assuming there is still a fair chunk outstanding. They should have completed before Christmas, I've been drip fed very limited information, the mortgage holder is not great at admin and generally burns their unopened post when the pile gets too big.

The charge I assume would be on the land registry?

Thank you 

_Penny_Dreadful

Those are a blast from the past!

I never had one but I have friends who did.  IIRC there was a mortgage element and a personal loan element to the borrowing.  The mortgage was up to 95% LTV and was secured against the property and the remaining 30% was an unsecured personal loan. 

strawb_shortcake

Yes this was taken out about 20 years ago, but thank you, confirms I need to give said person a wide berth for awhile as they are going to be super grumpy! 

Domaco16

We had a 110% northern rock mortgage in 2008! 

Obviously at the time we thought it was amazing as we didn’t even have to put down a deposit but long term it wasn’t 😂 
Northern rock got sold and think sold again- no idea who we ended up with but the 10% was a loan and we had hardly paid any of it back- it’s terrible really too think how much money we lost. X

EssexHebridean

110% here too - taken in 2003. Thankfully we saw the light and began overpaying in 2007 - by the time the “good bank/bad bank” split happened we’d done enough to be one of the tiny percentage of mortgage accounts that got transferred to the “good bank”. 

But yes - if I remember rightly the product name was the “Together” mortgage - and it was an unsecured personal loan on top of the mortgage. We combined the two elements of ours together when we took a new deal out in 2011 to simplify things and because not only was our LTV good enough by then, but we were continuing to overpay, and a far better rate was being offered on the mortgage portion.  (Not good advice generally to convert unsecured borrowing to secured, but it did work for us. 

strawb_shortcake

Thanks again, will be interesting to see what comes out in the next couple of weeks. We've tried to help many times over the years to get them on track but they always knew best...