Northern Rock Mortgage now NRAM?

Nikkei1984

Now I'm really confused, we took out our mortgage with Northern Rock and now our repayment statements are showing NRAM in the top right hand corner. Now looking at the Northern Rock website it says about remortgaging for current customers, but the NRAM website says nothing about remortgaging, so where do I stand? Am I an NRAM customer and therefore am not eligible to remortgage with Northern Rock? Or as NRAM is Northern Rock in another guise (correct me if i'm wrong i'm making assumptions based on the name) am I still eligible to remortgage with them? I don't want to move as we took out a loan that will shoot up 8% above the variable rate if we move providers.

Many Thanks
Nikkei

Thrugelmir

Your mortgage is with NRAM not Northern Rock following the division of the mortgage book . NRAM are no longer offering new products and your mortgage will default onto their SVR.

Your only option is to chip away and reduce the amount you owe. In time you will be able to remortgage to another lender. Once your LTV improves.

Nikkei1984

Thank you Thrugelmir, can I ask two questions:

Why would our mortgage have been moved to NRAM?
How is LTV calculated? does it take into account credit elsewhere, unsecured loans, secured loans?

Thanks
Nikkei

Thrugelmir

Northern Rock (as was) funded its growth by raising money money in the wholesale money markets by securitising mortgages and unsecured loans. So although NR administered the debts , the money owed to investors.

When NR and NRAM became seperate identities. The unsecuritised debt was moved to NR. The securitised debt to NRAM. Over time NRAM's loan book will be liquidated and the investors repaid.

Your LTV is calculated by the amount of secured debt. Though NRAM will impose a penal rate of interest on the unsecured element if the mortgage alone is repaid. So maybe best to tackle the unsecured loan first if you can afford to make overpayments. However small they may be.

cathh70

Nikkei - did you not read the numerous letters that were sent out explaining why, when and how this was happening? I know I got several before, during and after the transfer process.