NRAM ERC refund coming soon...

Meeper

damory wrote: »

I am trapped in an expensive mortgage with a long ERC with NRAM and would not have entered into this 'unfair and onerous' contract if I had been dealing with NRAM as rimbot quite rightly points out.

Absolute nonsense. The fact that it is NRAM and not Northern Rock has nothing to do with your being "trapped in an unfair and onerous contract". Your contract terms with NRAM should be the same as the ones that you agreed to initially when you started the application.

Additionally the IFA's that we dealt through would not have sold us such a product.

Why not?

The cost's to NRAM to waive the ERC should be part of the cost to clean their book up, which the tax payer (rightly or wrongly) has decided to underwrite.

Why should they waive the ERC on a product that you agreed to in the first place? Have they changed the terms of your original agreement in some way that means that the terms are now more onerous than they were originally?

Quoting contract terms in this situation is meaningless when the organisation we are dealing with now is a totally different entity.

Not so, as the securitisation means that they have to honour the original terms that you were given at the point of sale.

As the B&B book is also being run by the government, polices that they adopt are absolutely relevant and I fully expect NRAM, in time, to adopt a similar approach regarding waiving ERC's.

Regards

Damory.

Nope, afraid not. None of them are being "run by the government", and neither one has any obligation whatsoever to copy the policies and procedures of the other.

I'm afraid, as much as I don't like to, I must take issue with pretty much all of your post there.

Sorry.

M.

Thrugelmir

damory wrote: »

I find your posts simplistic.

They are simplistic for good reason. There are other forums to discuss the full detail and complexity of given topics. This detail has no direct relevance or interest to a particular post. Other than that's why a given situation is as it is.

I am trapped in an expensive mortgage with a long ERC with NRAM and would not have entered into this 'unfair and onerous' contract

In a simplistic answer. Your choice. Whether it was NR originally or now NRAM. You entered a legally binding contract. The terms of the contract are unchanged. So unable to see grounds for complaint.

rimbot

I wrote to my MP and Vince Cable....

Meeper

I'm sure that will do it...

picardygirl

Quigibo wrote: »

I wont be paying the settlement fee, I can wait the 6 months, I'm at 78% LTV and an excellent credit history. if all mortgages were scrutinised, why was I moved to NRAM?

I think it was because they made an assumption on the values of my property and its LTV based on the purchase price. I have since ploughed around £30,000 into the property that had not been modified since 1970 and even in a falling market at the lower estimate I'm at 85% LTV, more likely 78%

As you say selling the debt complicates things as they will expect 6 months more interest or the ERC as part of the package, but this seems unfair in my circumstance.

Quigibo, the mortgages were not scrutinised, they were securitised which is a completely different thing!

I had the debate why were we put into NRAM, when others with a much higher LTV etc were not, but thats not how it worked! Read the thread dedicated to NR mortages at the top of the mortages and endowments forum, this does explain it a bit more!

I know a NR mortgage customer who has an interest only mortgage with no end term date and no guaranteed way of paying it off, except "telling" NR that their pension plan will pay it off (which is sort of the plan in the next couple of years), and when the letters were sent out telling customers whether they were with NR or NRAM, there letter stated they were still with NR (and i've seen the letter!), i was flabergasted until i understood that the majority of NR's mortgages were securitised!

damory

Thank-you for your quick replies. I did not make my point very well it seems.

In essence, I would not have agreed to a long ERC had I been dealing with NRAM because at the point of sale I was promised NR would always be able to offer an alternative mortgage product as my needs changed in the future. As they can no longer offer alternative products as they have chosen to change into NRAM many people in my situation believe NR have broken their contract as a supplier and they should be compelled to offer an alternative solution to people like me who's situation has changed and who need a different mortgage, something that we could have reasonably expected NR to provide, but NRAM cannot.

As they have chosen not to be a bank any more the only solution is waiving the ERC, which B&B already do (NRAM too if you borrow £3000 more).

Leta's original post indicated that NRAM was going to adopt the same approach as B&B.

I accept totally that, as the contract is written, I don't have any choices but the contract was agreed before everything changed. My considerations for accepting the ERC at the time were based on dealing with NR.

I am going to write to my MP tomorrow too - that's a good idea rimbot.

btw, NRAM have already agreed to refund my ERC as I will be borrowing £3000 more. I have not yet accepted as I feel they should waive it rather than forcing me to claim a refund. I will update the thread when I hear from the FOS. Hope that explains my last post!

Ju&Mel

damory wrote: »

Thank-you for your quick replies. I did not make my point very well it seems.

In essence, I would not have agreed to a long ERC had I been dealing with NRAM because at the point of sale I was promised NR would always be able to offer an alternative mortgage product as my needs changed in the future. As they can no longer offer alternative products as they have chosen to change into NRAM many people in my situation believe NR have broken their contract as a supplier and they should be compelled to offer an alternative solution to people like me who's situation has changed and who need a different mortgage, something that we could have reasonably expected NR to provide, but NRAM cannot.

As they have chosen not to be a bank any more the only solution is waiving the ERC, which B&B already do (NRAM too if you borrow £3000 more).

Leta's original post indicated that NRAM was going to adopt the same approach as B&B.

I accept totally that, as the contract is written, I don't have any choices but the contract was agreed before everything changed. My considerations for accepting the ERC at the time were based on dealing with NR.

I am going to write to my MP tomorrow too - that's a good idea rimbot.

btw, NRAM have already agreed to refund my ERC as I will be borrowing £3000 more. I have not yet accepted as I feel they should waive it rather than forcing me to claim a refund. I will update the thread when I hear from the FOS. Hope that explains my last post!

£3000 from who? NR?

Meeper

I was promised NR would always be able to offer an alternative mortgage product as my needs changed in the future

If you have anything in writing to this effect, I'm President Obama.

You may have understood this to be the case, but a lender will never state that they will offer you alternatives at any point in the future. You should always absolutely rely on the documentation you are presented with in the mortgage offer. You will have a rate of x% for period y. At the end of period y your rate will revert to z% for the remainder of the term. Absolutely no obligation on the part of the lender to offer you anything else.

Blodwen

damory wrote: »

btw, NRAM have already agreed to refund my ERC as I will be borrowing £3000 more. I have not yet accepted as I feel they should waive it rather than forcing me to claim a refund. I will update the thread when I hear from the FOS. Hope that explains my last post!

Ju&Mel wrote: »

£3000 from who? NR?

I'm interested in who you are borrowing this from too, as isn't it the case that NRAM can't lend any more? Unless you mean this is from the refund offer they had last year.

I agree with your earlier point too- as far as the contracts state, we just have to put up with it, but it isn't fair and if I'd known I was going to end up with a bank which essentially wouldn't let me move house without having to pay an ERC I never would've gone with them either. Don't you just love hindsight?! :cool:

damory

M

Nice to chat with you Mr President! Yes I have received a letter last week stating that NRAM will refund the ERC if I borrow £3000 + the redemption figure.

The point of this thread is that NRAM's policy was rumoured to change yet again this week so the ERC is waived. Any news on that?

Leta where are you?