Northern Rock or NRAM!!!

Gill08

We have had our mortgage with Northern Rock for 10 years. We were recently told that it was being moved to another part of the business - NRAM, who have said that they will not lend any more money to anyone. Therefore now that we wish to move we have to go to another lender, but this means paying a penalty charge to NRAM of approx. £4,500!!!

We have emailed NRAM, but so far have not received a response. Does anyone have any experience or advice on this, it would be really helpful to know if there is anything we can do. Thanks :j

betmunch

You have the option to port it, but in my experience they will do anything they can to be awkward until you give up and just take the hit!

opinions4u

betmunch wrote: »

You have the option to port it, but in my experience they will do anything they can to be awkward until you give up and just take the hit!

How can you port it to a new lender?

shortchanged_2

Gill08, what deal are you on and how long for?

antrobus

NRAM or Northern Rock Asset Management is the 'bad bank' created out of the wreckage that was once the Northern Rock proper. So if your mortgage is now with NRAM, someone, somewhere, has decided that you are the proud possessor of a toxic loan.

NRAM is now also being merged with what is left of B&B. It may therefore been in a state of administrative upheaval. The contact information on their website merely lists a telephone number 0845 609 9610. So I'd try that if all else fails.

Typhoon2000

Are you sue you still have an early repayment charge after 10years? I would have thought they'd be jumping through hoops to have you pay off the mortgage early.

opinions4u

somewhere, has decided that you are the proud possessor of a toxic loan

NRAM took on 80% of the old Northern Rock mortgage book.

Most of this was "clean" lending with an LTV below 95% and no arrears.

betmunch

opinions4u wrote: »

How can you port it to a new lender?

Not to a new lender, port what she has with NRAM to avoid paying the ERC.

You know better than that!

antrobus

opinions4u wrote: »

NRAM took on 80% of the old Northern Rock mortgage book.

Actually it was more like 50%. Northern Rock had a book of £100 bn when it went pop. NRAM has less than £50 bn. (Bear in mind that about £40 bn worth walked away in the years 2009-2010.)

opinions4u wrote: »

Most of this was "clean" lending with an LTV below 95% and no arrears.

Well, last time I looked NRAM's arrears were running at over 5.5% of its mortgage book, which is pretty toxic when you consider the FSA works to a threshold of 1.5%.

Nevermind, the whole rationale of splitting Northern Rock into a 'good bank' and a 'bad bank' was to shift all the 'toxic lending' into the 'bad bank' so that the good bank could be flogged off. By definition therefore if your loan is with NRAM "someone, somewhere, has decided" its toxic. You might not like it, you might not even agree with it, but that's the way it is.