Northern Rock End of Mortgaged Deal (Merged Threads)

Meeper

They can make their rate whatever they like. Chances are it would increase by 0.25% also, but it may increase by a little more or a little less. Depends on the economists in charge of pricing at NRAM's view on things I guess.

Meeper

This thread is specifically about NR. Feel free to start a new thread with your query.

FCRangers

Are you better over paying the mortgage or the loan part? with a view to remortgage when my LTV increases? I've got 75k mortgage and 3k loan. Property currently valued at £85k.

niccatw

I about the same as you FCRangers. I'm currently overpaying the loan part only as in my terms and conditions it said I couldn't split the two if I wanted to go elsewhere (not that I can right now, but figured I'd rather get rid of the loan part to have that option sooner rather than later).

I did have to hassle them a bit to make sure they paid all of my overpayment to the loan part though. They didn't do it when I first asked.

jjumanga

Hi,

I owe NRAM a total of £198,000 (Mortgage Element is 170k and unsecured 28k). House Value is only £180k.

Have been on SVR since October and being totally at NRAM's mercy I am a bit scared!

I've read many threads and just want to ascertain whether there actually is anything at all that can be done about all of our situations?

Is it just a case of hanging on until we can't manage anymore and thousands of people have houses repossesed?

As it stands at present I could afford to live with the unsecured loan on the current rate however to impose a significant rise should I move my mortgage seems unfair?

A definite answer would be most appreciated.

Thanks, Chris

beanielou

If you want a definite answer you really need to speak to NRAM as they are the only people that can give a definate answer for your situation.
Speak to them as in a 'what if?' senario.

Barny1979

jjumanga wrote: »

Hi,

I owe NRAM a total of £198,000 (Mortgage Element is 170k and unsecured 28k). House Value is only £180k.

Have been on SVR since October and being totally at NRAM's mercy I am a bit scared!

I've read many threads and just want to ascertain whether there actually is anything at all that can be done about all of our situations?

Is it just a case of hanging on until we can't manage anymore and thousands of people have houses repossesed?

As it stands at present I could afford to live with the unsecured loan on the current rate however to impose a significant rise should I move my mortgage seems unfair?

A definite answer would be most appreciated.

Thanks, Chris

Are you able to pay more on the unsecured element, that would be the first step to take.

skinnybowler

Barny1979 wrote: »

Are you able to pay more on the unsecured element, that would be the first step to take.

Why pay more on the unsecured element? By my understanding, the secured part is 100% flexible and any overpayments can be withdrawn at any time. Therefore, you are always better only paying off the secured part with the overpayments.

If something unexpected happens, and you need to release cash, then you can just get NRAM to repay your overpayment to the secured element, without any charges or penalty. If you have paid it off the unsecured part, then any release of funds is subject to a new credit agreement and therefore would not be as straightforward - if its even possible.

Once you are actually in a position to move house or remortgage, simply withdraw funds from your overpaid secured element to pay off the unsecured element.

jjumanga

I could in the short term but not enough to make any substantial difference. My fear is that once the svr starts creeping up the only way out is to sell the house and be left with a loan of approx 18k

jjumanga

a loan of 18k on much higher interest rates!