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  • FIRST POST
    • CloserToFreedom
    • By CloserToFreedom 12th Sep 17, 1:54 PM
    • 4Posts
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    CloserToFreedom
    NRAM Has cancelled my existing arrangement
    • #1
    • 12th Sep 17, 1:54 PM
    NRAM Has cancelled my existing arrangement 12th Sep 17 at 1:54 PM
    Hello Everyone

    I have searched the Forum and can't find an answer, I've kept this as short as I can!

    In 2006 my then husband and I got a Together 125% mortgage with Northern Rock. Ex and I divorced in 2014 and in 2015 we sold our property with a deficit of £40,000 - which NRAM was more than happy to convert into a shortfall loan with the agreed repayment being £1,000 pm between us.

    The original mortgage was £940pm, We always paid £1,000 and this hasn't ever been a problem.

    The current balance is £12.2k

    We received a letter each asking us to call them. NRAM have advised they have cancelled our arrangement, they want more than £1,000pm and if we don't make a new arrangement in the next 14 days they'll be handing our debt over to a collection agency - but we must not stop paying them in the meantime (Which makes me think we in fact are still in an arrangement).

    They are demanding both our Income & Expenditure, with a view to then receiving bank statements and payslips from us both...

    £1,000pm is already a huge amount - Not once have we missed a payment, and quite frankly I have very little money left after paying for the house I rent and paying them.

    I should add, none of this is in writing, it's all been advised by phone, and the staff have been really quite unpleasant. The only letter is one asking us to call them - I can't help but think they're trying to intimidate us into paying more whilst not putting it in writing.

    Can they really do this? Can anyone advise how best to proceed?

    I've asked them to send it all to me in writing and they have agreed to send the income and expenditure form in writing.

    Thanks
    H
Page 1
    • dunstonh
    • By dunstonh 12th Sep 17, 2:35 PM
    • 89,593 Posts
    • 56,068 Thanks
    dunstonh
    • #2
    • 12th Sep 17, 2:35 PM
    • #2
    • 12th Sep 17, 2:35 PM
    NR no longer exist. It was split up and NRAM deal with bad side of the book. They have a remit to recover the funds on behalf of the taxpayer.

    Can they really do this? Can anyone advise how best to proceed?
    yes they can. You are effectively a bad debt which has breached terms. So, they are looking to check your affordability and look at ways to speed up repayment if they can.

    If there is not genuine scope for an increase, they will not normally set a level higher. This is why they want to know your income and expenditure.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • CloserToFreedom
    • By CloserToFreedom 12th Sep 17, 3:06 PM
    • 4 Posts
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    CloserToFreedom
    • #3
    • 12th Sep 17, 3:06 PM
    • #3
    • 12th Sep 17, 3:06 PM
    Hello dunstonh

    Thank you for your response however I am not sure what you mean by breached terms?

    You are effectively a bad debt which has breached terms
    Originally posted by dunstonh
    When we sold the property, the sale itself was approved and permitted by NRAM, with whom the mortgage was already with.

    Please can you clarify?

    Thank you again
    H
    • dunstonh
    • By dunstonh 12th Sep 17, 3:46 PM
    • 89,593 Posts
    • 56,068 Thanks
    dunstonh
    • #4
    • 12th Sep 17, 3:46 PM
    • #4
    • 12th Sep 17, 3:46 PM
    Thank you for your response however I am not sure what you mean by breached terms?
    When you sold the property, you didnt pay the mortgage in full. So, now it is effectively a poor quality debt that needs to be cleared ASAP.

    its just wording on my part. We could insert or use different words. However, bottom line is that this is poor quality debt and they want to recover it as quickly as possible but within your affordability.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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