Remortgage or stick with NRAM SVR rate?

kingstreet

First, check your mortgage offer to see which one is stated there - base rate tracker or standard variable rate.

If the mortgage offer agrees with the other docs, I would write to NRAM attaching a copy of each one asking for their comments.

If the mortgage offer differs, I'd contact the original adviser, providing the same copies, and ask them for their comments.

Sounds like someone got it wrong. You have to establish who before you can take it further.

kingstreet

I've just checked three NR cases, one from 2006 and two from 2007 and all three suggest they revert to SVR on both the KFIs and the offers.

Having read your post more fully, I see you have dealt with my issue and established the offer differs from the KFI and suitability letter. I suggest you should therefore contact the firm which originally gave you the advice to raise the matter with them.

It is poor that no-one picked up the difference in the reversions at the point the offer was issued.

siksik6

Similar boat here.

5.6% fixed for 5 years, up in December, but can remortgage now.
Have 85% LTV based on a vaulation for what we think the house is worth.
Best rate so far assuming valuations is successfull is 4.4% with Woolwhich but only saves £60 per month, and risks a £150 withdrawal fee if the valuation isn't sufficient (it's borderline!).

SVR from NRAM doesn't look tempting as it's 4.8 and subject to change anyway.

Abbey offered 4.8%, no withdrawal fee but £995 to start the mortgage with them, so the Woolwhich one is worth risking the £150 I would expect.

Was really hoping we could get a much better ratem but seems you need 70% LTV to get anything below 4%

hcb42

if the valuation is borderline, based on what you think the house is worth, then assume you wont get the rate...

bhachub

I am in this situation:-

NRAM mortgage runs out in Novemeber. They have said I can move as they cannot offer me anything. They lost their license or something. I was on a fixed rate at 5.99 in a 100% mortgage.

150k Mortgage inc 15k unsecured.

However house is worth only 125k at best. They have told me after November it will revert to 4.79 if it stays at that rate.

Because I am in -ve equity I pretty much have no chance of getting someone to offer another 100% mortgage?

So am I forced to stay with them or are there any other options?

Thanks in advance

kingstreet

bhachub wrote: »

I am in this situation:-

NRAM mortgage runs out in Novemeber. They have said I can move as they cannot offer me anything. They lost their license or something. I was on a fixed rate at 5.99 in a 100% mortgage.

150k Mortgage inc 15k unsecured.

However house is worth only 125k at best. They have told me after November it will revert to 4.79 if it stays at that rate.

Because I am in -ve equity I pretty much have no chance of getting someone to offer another 100% mortgage?

So am I forced to stay with them or are there any other options?

Thanks in advance

If your secured element is more than the value of the property, you have no other option but to stay with them, I'm afraid.

claytonshipton

Guys,

Its not good news im afraid.

NRAM was set up by Northern Rock as the 'bad' part of the company. Not because people werent paying there monthly payments but because they were leant high Loan to Values (to calculate; current mortgage balance divided by property value and times by 100). Anything above 90-95% right up to 125% meant you are classed as high risk (the main reason why NR got into trouble in the first place).
The other reason why you're with NRAM is because there arent currently any other Lenders that can offer you a remortgage because of the high LTV. AND NRAM has one of the highest Standard Variable Rates (SVR), which you ove onto when you fix rates expires, at 4.79%, and this will increase when the Bank of England base rate increases. The major problem here being your stuck and cant remortgage to fix a new deal AND if the rates keep increasing your monthly mortgage cost will get higher and higher and before NRAM know it we're back to 2007 when NR clients cant afford the monthly payments and hand the keys back.
As NRAM are now under the Government surely they will have to do something to sort this problem out, and a problem NR only have themselves to blame for, seeing as they were the ones happy to take these type of risks at the time.
All you can do is sit back and keep your fingers crossed.

If you want to be kept upto date with any changes you can follow me on twitter @essexmortgages or if you want to discuss you can call me on 01702 226700 and ask for Clayton.

Thrugelmir

claytonshipton wrote: »

If you want to be kept upto date with any changes you can follow me on twitter @essexmortgages or if you want to discuss you can call me on 01702 226700 and ask for Clayton.

Tut tut against board rules to advertise.

SirWorryAlot

Hi

Another NRAM confirmation query please.

I have 137k secured on my property with NRAM. 23k unsecured currently in a Debt Management plan.

My current deal with NRAM finishes DEC 2011

Question: Will i be able to re-mortgage just on the secured amount of 137k with NRAM or will they hold me back because of the unsecured amount? valuation just complete on my property 155k
I am hoping to get a better deal from another lender


Many thanks in advance

carrie01

I have taken out a five year fixed mortgage with Northern rock and its due to end in Sept 2012, however I have the option to renew early. I have been looking into this and the rate we borrowed was about 107% and the interest was 6.79. the variable rate at the time was 7.59%. Will I automatically go to this rate once my fixed term is up? Im not likely to get another deal from another lender as the amount we borrowed was so high and now in negative equity!!

Does anyone know will my interest payments go up?