Northern Rock End of Mortgaged Deal (Merged Threads)

goaten2000

Debs0778 wrote: »

Does anyone know how much they raise the interest rate on an unsecured loan (as part of a together mortgage) if you move the mortage only eleswhere and leave the loan with them?

My 5 year fixed rate ends in May - rate is 6.2% or thereabouts

Thanks

When you're fixed rate ends you'll go onto the SVR. If you move the mortgage away and leave the loan part with them the interest rate on the loan will typically be SVR + 5% but you would need to confirm this with them.

spidermev

Debs, you will need to check your paperwork as each account had it's own terms and conditions, but it could go up to as much as 15% to leave the unsecured part with them. Mine for instance is 5.99%, but if I remortgage with someone else and leave the unsecured loan with them it goes up by 8% to 13.99%!! Depends on your original offer.

sprshaw5107

Hi I was wondering if I could get some advice.

I have at the moment a mortgage with NRAM £113,000 and an unsecured loan at £25,000. I was wandering what option would be best as my house is only now worth £115,000. My fixed rate ends June 2012 and they will automatically place me on SVR of 4.79%. I have looked around but it does not look to positive to change mortgage lenders. I was very foolish and naive and took a 127% mortgage as advised this would be OK before the crash in 2007. I am now concerned that I will never be able to get back to a decent future. Any help or suggestions would be appreciated.

Thanks.

goaten2000

sprshaw5107 wrote: »

Hi I was wondering if I could get some advice.

I have at the moment a mortgage with NRAM £113,000 and an unsecured loan at £25,000. I was wandering what option would be best as my house is only now worth £115,000. My fixed rate ends June 2012 and they will automatically place me on SVR of 4.79%. I have looked around but it does not look to positive to change mortgage lenders. I was very foolish and naive and took a 127% mortgage as advised this would be OK before the crash in 2007. I am now concerned that I will never be able to get back to a decent future. Any help or suggestions would be appreciated.

Thanks.

We're in a similar boat, although our house value is just about higher than the mortgage / loan combined.

Most of the advice I've seen suggests that if you're managing with the repayments, then sit tight and continue to pay either the minimum payment, or more if you can. When you switch to SVR then if you maintain the payments that you've been making, you'll start to chip away at the mortgage (assuming SVR is lower than your fixed rate)

buccaneerboy

I understand the conditions I signed up for was to pay an extra 5% + SVR on the unsecured part of my Together Mortgage should I move the secured part. I have no problem with this. However, NRAM is supposed to be reducing its mortgage book and the only thing stopping me moving my current mortgages is the threat of this price increase should I keep the unsecured with NRAM. They will happily waiver ERC's yet why will they not consider letting me move my main mortgage and keep the Unsecured loan at the SVR? Surely they are still receiving adequate repayment? Any thoughts?

spidermev

Buccaneerboy, I agree that would definitely help them clear their books quicker but I think profit is also playing a massive role in the decisions they are making. Maybe that will be introduced when the SVR starts to go up and people default as their payments become unaffordable. I read they have a "10 year plan" even though the last mortgage on their books isn't due to be redeemed until something like 2045.

Jonesy1977

Hi Have read this thread with interest,

I have an interest only NRAM mortgage and I am 3.5 years into a fixed (5.79) deal. I have just had my house independantly valued by three estate agents and taken the average value which would leave me at 85% LTV (assuming new lenders would accept this) I have a mortgage of £226K and I have credit cards of around 10K and a car loan of around £10K (18 months left). I have earnings allowing me around £1000 per month additional payments on debt.

I am unsure whether it would be best to

A - Sit tight and pay off all debts in advance of going for a new mortgage deal before I go onto SVR with NRAM (risking my house devaluing)
B - Trying for a new mortgage now
C - paying the £1000 pm down on the mortgage and waiting before going for a new mortgage.

Can anyone offer any advice?

deedee71

Jonesy1977 wrote: »

Hi Have read this thread with interest,

I have an interest only NRAM mortgage and I am 3.5 years into a fixed (5.79) deal. I have just had my house independantly valued by three estate agents and taken the average value which would leave me at 85% LTV (assuming new lenders would accept this) I have a mortgage of £226K and I have credit cards of around 10K and a car loan of around £10K (18 months left). I have earnings allowing me around £1000 per month additional payments on debt.

I am unsure whether it would be best to

A - Sit tight and pay off all debts in advance of going for a new mortgage deal before I go onto SVR with NRAM (risking my house devaluing)
B - Trying for a new mortgage now
C - paying the £1000 pm down on the mortgage and waiting before going for a new mortgage.

Can anyone offer any advice?

If the interest rate on your debt is more than 5.79% you should really pay it down first - classic MSE.

What are the chances of your house value falling now?

stevie_p_3

hi all 1st post so go easy with me! been reading through the threads some good info given out by lots of ppl on here! im hoping for some advice/opinions on my own situation with NRAM.
In Sept 2007 we took out a 120% 'Together Mortgage' on a 5-year Fixed deal @ 7.29% (biggest mistake of my life!)
£102000 Mortgage + £17000 Unsecured
House was bought for £108000 + and we've been told to expect around £100000-110000 so not too much change. (in a good popular area though we're not looking to sell)
we have received the letter of NRAM like many about the scrapping of ERC'S but our financial position at the moment wont allow us to switch.

Our question is what should our next move be with no savings & equity at the min ???
We could probable raise £17000 within the next 18months to clear the unsecured loan & then start saving for a deposit for a new deal.
So would we be best to start overpaying on the unsecured loan, the mortgage itself or just pay extra into a savings account & pay a chunk off either next year??
Our financial situation should be a lot healthier come next year aswell as my partner finishes her PHD this year & will hopefully find work. We have managed on my income alone for the past 4 years. We just feel like we are in a bit of a hole & trying to plan the best way out of it!!

thanks:)

Thrugelmir

Repay the unsecured loan first. The interest charge is the same so the interest saving is identical. Then you'll be able to measure how well you are saving.

However do build an emergency cash reserve for those unexpected bills.

Don't fret over the negative equity situation. In time matters will right themselves.