Northern Rock together - Pay the mortgage/secured/unsecured??

Hi all,

I am yet another one who took a Northern Rock Together mortgage. I have read various threads on this, however, I haven't seen anything conclusive in respect to my next move!

I have approx the following debt :

£130000 mortgage @ 4.78%
£8000 secured @ 3.94%
£30000 unsecured @ 4.78%

I have about £6000-8000 cash, depending on how much i set aside for emergencies, or a new iPad (joking). What I'm trying to figure out is, which is the best to hit first?

The options, as I see them are :

- Attack the unsecured loan - If I was ever to separate this from the mortgage, with the intention of moving to another lender, the rate, either with NRAM or another lender, will go up to about 12% (triple the replayment!) so my initial thoughts were to pay this off(or at least a majority) while it is still at good rate which would give me the option to switch lender at a later date while I continue to pay off (and hopefully overpay) my mortgage/secured in the future.

- Attack the mortgage - This would of course mean bringing down the repayments and perhaps bring the possibility of moving to another house(needed for more children!) a little closer, especially when the market picks up in 5 years.

- Attack the secured - I presume this would be portable so would be the same as the mortgage except without the benefit of increasing the equity?

NRAM have advised me to hit the mortgage, but I suspect they just want to keep me shackled in their dungeon.

Any advice on which way to go???

Thanks in advance!!

:cool: