Northern Rock loan at 15% - help please!

mircea

Hi everyone
We are just coming to the end of our current mortgage deal with Northern Rock. As most of you know, NR no longer want our business so we are looking elsewhere, however NR have advised us that if we leave them, our unsecured loan attached to the mortgage will go up to 15%. While this sounds like plain profiteering to me, for the moment we would like some advice on best companies to approach for transferring this loan to a more decent rate. Our finances as follows:
Mortgage - 132k, house worth 140k
Joint income - 61k
Debt - 1 loan 2k and 1 car hp 9k
Credit rating - fair and good
Many thanks.

jonesMUFCforever

When you remortgage won't you pay off the personal loan?

Or did you borrow more than what your home is worth?

Kavanne

Get a settlement figure for the loan and look elsewhere for a better deal?

jonesMUFCforever

OP has not answered my question of whether he has borrowed more than 100% equity. I think he has which will make remortgaging difficult.

To pay off NR he needs another mortgage and funds in place to pay off the loan - he won't be able to do one without the other.

On his remortgage application he will have to declare any O/S debt including the loan - in today's climate they will take this amount off the amount lent.
This leaves him in a catch 22 situation - a classic case of over borrowing.

A mortgage broker might be able to help but he will have to pay for it in interest rates!

mircea

jonesMUFCforever wrote: »

OP has not answered my question of whether he has borrowed more than 100% equity. I think he has which will make remortgaging difficult.

To pay off NR he needs another mortgage and funds in place to pay off the loan - he won't be able to do one without the other.

On his remortgage application he will have to declare any O/S debt including the loan - in today's climate they will take this amount off the amount lent.
This leaves him in a catch 22 situation - a classic case of over borrowing.

A mortgage broker might be able to help but he will have to pay for it in interest rates!

Please read my post again. Some hints for you:
1. The loan is unsecured - as mentioned in my post
2. Joint income is 61k as mentioned in my post- multiplied by 3=180k - take away 30k for the loan= 150k. I need 130k for the remortgage.
3. I posted here asking for advice on best lenders in order to transfer the loan to a decent rate - if you can offer this advice please do so, if you can't please spare us the "catch 22 " and "classic case of over-borrowing" scenarios. I was very specific in my posting with regards to the advice I require - I would be very grateful if you could stick to it. Thanks.

jonesMUFCforever

Can you clarify one thing?
Is the £30k o/s on the loan included in your o/s mortgage figure of £132k?

If not then you can deny it if you like but you are in negative equity - you owe £162k on a house valued (when by the way?) at £140K.

You can't get an unsecured personal loan of more than £25k so whatever arrangements NR did with you for their (125%?) mortgage it is coming home to bite you whether you like it or not.

mircea

CHR15 wrote: »

LMAO!! I can see it now

The Case of mircea vs CHR15 in the old bailey!! ha ha! thanks for that.

Besides, how could you afford a Solicitor???? you're skint!

You might be laughing but I can't see any insults in your post, so you got the message which is all I wanted.

mircea

jonesMUFCforever wrote: »

Can you clarify one thing?
Is the £30k o/s on the loan included in your o/s mortgage figure of £132k?

Nah don't worry bud. I will look for advice somewhere else.

saintscouple

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Lyncroft

LOL! This made me laugh. Always worth looking at posters previous posts.

mircea

Lyncroft wrote: »

LOL! This made me laugh. Always worth looking at posters previous posts.

LOL - yes you are so right. I didn't think of doing that! It's so funny. He seems to be name calling left right and centre so I will report him to the abuse email address.