Northern Rock Together Mortagage advice please

dave1983_2

Hi all,

I have a NR Together Mortgage which comes to the end of the fixed term in December. As I am in the Armed Forces I want to start arranging a re-mortgage in the next few months. The question I have is how will a new lender view the together mortgage - is the mortgage part of the loan what they will re-mortgage or will they include the loan part with the mortgage to make up the re-mortgage?

I bought my house in Scotland for £95000 (valued at £82000 - offers over system massively inflates prices). Deposit £5000, mortgage of £90000 broken down into £77900 mortgage, £12100 unsecured loan giving total loan of 110% of value. Since taking the mortgage I have overpaid so I currently owe £85000 on mortgage and £10000 on unsecured loan as of my last statement. I have a few thousand in the bank which I would like to pay off, would it be best to take it off the loan rather than the mortgage part? Also, would it be better to take a larger amount per month off the loan instead of the mortgage?

Thank you in advance for any assistance or advice! David

homer_j_3

What is the value of your home currently?

dave1983_2

I don't know the current value of my house but I have had a lot of improvements done if that would make any difference?

homer_j_3

well, you need to know how much the house is worth so you can say whether you are in negative equity still or not.

If your house is worth 90k and you owe 95k then there is 1 solution but if your house is worth 100k, the solution changes.

Have you searched for sold prices of similar properties in the area?

dave1983_2

I've had a look and houses in the area have been selling for between £95000 and £125000 although I don't know how similar they are to mine as the area I live in is a mish-mash of 1900s cottages, 1970s ex-council houses and flats. I am led to believe that the Scottish market is still bouyant and I live close to two large RAF camps. I think the big question is how will a new lender view the together mortgage - as one mortgage or a mortgage and a loan?

homer_j_3

The fact is that on your credit file it will be down as 2 separate credit commitments.

If you are not redeeming it, then they will see that as a loan but if you are redeeming it, they will see it as part of the mortgage.

john_mac83

Cant really offer you any advice on your particular situation as i know nothing sorry lol but I have the same mortgage with NR and have 2 and a half years left on my fixed rate.

What I am doing is overpaying about £400 a month and taking it all off the unsecured loan (you have to call and ask but they will let you do this nor problem) so by the time comes to remortgage its less complicated.

I will have cleared my 8k unsecured loan and just have about 70k left on the mortgage. whether this is the best thing to do or not I dont know, but I just want to get rid of the loan asap.

Cantdance_2

I have this mortgage and you want to make sure you sort out the unsecured bit because if you try and pay off the mortgage and not the other loan, they completely redo the terms of the loan to take it up to a typical rate of about 19.9% without reducing the term.

Ouch!