Northern Rock End of Mortgaged Deal (Merged Threads)

Thrugelmir

blackjack2006 wrote: »

mmm now im confused - yes we have £20 years remaining
we currently pay £651 monthly
so i would have thought it would have dropped by more than that considering nearly 3% difference in interest rate.

Is your mortgage currently interest only?

i.e. are you repaying the capital balance owed?

blackjack2006

No its not interest only

Thrugelmir

blackjack2006 wrote: »

No its not interest only

Hence the difference.

Maybe the time to tackle the mortgage debt while interest rates are low? Better than renting for the next 20 years and having nothing to show for your money.

pss53

We have a crock mortgage or as there now called nram...

We have the option to split our mortgage so we keep a loan with northern rock, but releases enough equity for us to move to something bigger?

Just wonderd if anyone else had done this or if anyone could advise us if this is safe to do or advisable ???

We planned to refinance the loan with someone else as I think they've told us the apr is 12% ???

Would you split now so when we sell they just take the mortgage we have left and not the loan....

Cheers in advance...

Thrugelmir

Clear the loan element. If you don't. The unsecured debt will impact your application with a future lender in any event.

pss53

Thrugelmir wrote: »

Clear the loan element. If you don't. The unsecured debt will impact your application with a future lender in any event.

What if we can't clear the loan ? Won't we be accepted anywhere ??? Is it not worth bothering ??? Are we stuck in our property? :-(

pss53

Anyone ??? I don't really want to start a new thread?

goaten2000

My understanding of it is that you can leave the unsecured loan with NRAM and move your mortgage however if you do this, the APR on the loan will increase. You'll either need to check your agreement, or contact NRAM to find out what the impact will be (mine for example will double if I did this)

I think what Thrugelmir is trying to say is that if you do this, you will need to declare the loan as part of a new mortgage application (it will certainly be on your credit file) and this may have an impact on the application.

Everything does of course depend what your equity is. If you're in negative equity then you won't be able to remortgage on your current property, let alone do much else, but if you're in positive equity, it all depends on how much by etc.

I would suggest talking to an expert (such as an independent financial adviser) to explore what options are available to you.

Captain__

When you took your mortgage, you obtain two loans.
1. Secured on the property as a mortgage
2. Unsecured

When looking to lend to you, new lenders will look at to chriteria,
1. The Loan to value ratio of your property to help decide the APR and if they will lend to you.
2. Affordibility against your outgoings.

If both the above are satisfactory, it is possible to get a mortgage, but you give no details of values so I cannot really make an educated guess. With regards to the outtanding loa valuation gaainst Northern Rock, approach them about the rate and what it goes up to so that you will be able to provide this to your mortgage brocker.

BEst REgards,

Thrugelmir

pss53 wrote: »

What if we can't clear the loan ? Won't we be accepted anywhere ??? Is it not worth bothering ??? Are we stuck in our property? :-(

NRAM will raise the interest rate on the unsecured element by 8%.

So this will impact your ability to borrow the amount you require elsewhere.

So if you are serious about moving then worth increasing your equity by saving to achieve this.