Northern Rock Mortgages

Together mortgage Northern Rock together mortgages are a special type of mortgage that gives you the opportunity to borrow up to 125% of your home's value. The Northern Rock together mortgage works by combining a secured loan of 95% to buy your home (or move your mortgage from your current lender to Northern Rock) with an unsecured loan which you can use for any purpose - all at one rate of interest. The maximum unsecured facility being 30% or £30,000 whichever is the lower

• The maximum secured mortgage loan can be up to 95% of the value of your property.
• The maximum unsecured loan can be up to 30% of the value of your property, subject to a maximum amount of £30,000, and a minimum of £1,000.
  (NB: These percentages are based on the lower of either the value or purchase price of the property).
• The total amount you can borrow on together, subject to the above limits, is 125% of the value of your property.
• The maximum amount of the unsecured loan facility that you would like to have available must be applied for and arranged at the same time as the mortgage.
• You can request funds from your unsecured loan facility any time you wish.
  For example, if you request an unsecured loan facility of £30,000, you might want to borrow £10,000 straight away to help furnish your new home and then have the facility to borrow the remaining £20,000 for whatever purpose you wish, whenever you like, during the agreed term of the unsecured loan facility.
• You can arrange to borrow more of your unsecured loan simply by calling us (subject to a minimum release of £500).
• You are only charged interest on the amount of unsecured loan that you have actually borrowed, or ‘drawn down’ from the loan. The together unsecured loan therefore acts as a handy cash reserve to be used whenever you need funds.
• You only make one loan payment to us each month to cover both the secured mortgage and the unsecured loan.
• together mortgages offer a full range of flexible mortgage features which gives you greater financial control of your mortgage.

Currently all of Northern Rock's residential mortgages, including together, offer the following excellent flexible features. Flexible mortgages provide you with the flexibility to repay your mortgage the way you want. You have the freedom to overpay, either monthly or in lump sums, and borrow back the overpayments later. You can also apply for payment holidays (all of these features are subject to conditions).

 

You can make unlimited overpayments on both the mortgage and any unsecured loans associated with it. These overpayments can be in the form of occasional lump sums or regular monthly overpayments or a combination of both. As any overpayments reduce the loan outstanding, this will result in an immediate saving in the amount of interest charged. Overpayments will automatically be allocated proportionately between your mortgage and any unsecured loan associated with it, unless you stipulate otherwise.

 

You can, at any time, borrow back any overpayments by either underpaying or stopping paying altogether, until the overpaid amount is used up (subject to our prior agreement terms and conditions).

If overpayments which total at least £500 have been made, you’ll be able to ask Northern Rock to borrow back some or all of the overpaid amount, provided the amount is for at least £500. This money will be sent direct to your bank account.

There are three types of payment holiday:

If you have previously made overpayments you can take a payment holiday by simply stopping future monthly payments up to the value of the overpayments.

Following nine consecutive full payments, you’ll be able to apply for a one month payment holiday even if you haven’t overpaid. This means that, subject to our approval, you can miss a whole month’s payment. This special facility can be applied for in each twelve month period and if you don’t use the payment holiday facility in a given year by this method, you can accumulate the right to take up to a maximum of three payment holidays.

Example:
If you choose not to use your one month payment holiday facility within the first two years you could apply for up to three months’ payment holidays in the third year.

In certain circumstances (e.g. maternity/paternity leave or a career break), you can apply for up to a six month payment holiday.

If you take a payment holiday, interest will continue to be charged. This will have the effect of increasing the current outstanding balance upon which future loan interest charges are calculated.