NRAM Mortgage advice

JohnT1974

hello all,
this may have been asked many times previous as it is quite a topic for discussion but I would like to get your thoughts and advice on my own personal situation.

We (my wife and I) took out the dreaded "Together" mortgage with what was Northern Rock. Since the bailout and split of the company our product now lies with NRAM (Asset management).

We owe in total approximately £160K of which £30K is a "secured loan" over the term of the mortgage.

Initially we borrowed (in 2003) 86K (mortgage) and a 25K personal "unsecured loan." We remortgaged in 2006 (for additional funds) for 130K mortgage and 30K (secured loan) as the value of our house increased somewhat in the time since we purchased it. Now I know now this was a very foolish thing to do but we did it nonetheless.

So today we have a 130K mortgage and a 30K secured loan.

We would like to move to upgrade (if possible) but our property value has fallen significantly in the last couple of years where it is now worth a maximum of 145K.

Can we sell the property and pay off the mortgage, and port the secured loan with us. I have spoken to an independent financial advisor who advises me to speak to northern rock to see if we can do a deal with porting the secured loan to a potential new property.

Your advice would greatly be appreciated.

beecher2

You'll need to contact NR to see what options you have. Remember you also need a deposit for your new house - if your house was worth 111k in 2003 then I'd be amazed if it is was worth anywhere near 145k now so you may well be in negative equity, even if you ignore the loan part.

kingstreet

I presume you mean the unsecured loan?

Can we sell the property and pay off the mortgage, and port the secured loan with us. I have spoken to an independent financial advisor who advises me to speak to northern rock to see if we can do a deal with porting the secured loan to a potential new property

You can sell the property, pay off the mortgage and keep the unsecured loan in place. The downside is the rate for the unsecured loan will go up to between 10% and 12% per annum.

You'll need a deposit of at least 10% to get a new mortgage with a new lender and the affordability check will be more difficult with the weight of the unsecured loan dragging you back.

You could port the NRAM mortgage, but they will only allow you the same size mortgage on the same rate - no new product and no extra borrowing, so that's probably a non-starter.

Have a look here for further info and contact details;-

http://www.nram.co.uk/

Thrugelmir

Are you making overpayments currently to reduce the size of your debt?

JohnT1974

thansk for the replies.

Unfortunately I am not making any overpayments and the loan part is secured. When I remortgaged in 2006 the property was valued at 185K.

JohnT1974

kingstreet wrote: »

I presume you mean the unsecured loan?


You can sell the property, pay off the mortgage and keep the unsecured loan in place. The downside is the rate for the unsecured loan will go up to between 10% and 12% per annum.

You'll need a deposit of at least 10% to get a new mortgage with a new lender and the affordability check will be more difficult with the weight of the unsecured loan dragging you back.

You could port the NRAM mortgage, but they will only allow you the same size mortgage on the same rate - no new product and no extra borrowing, so that's probably a non-starter.

Have a look here for further info and contact details;-

I did ring NRAM about this secured loan thinking that when we took it out it was unsecured.
They confirmed I remortgaged in 2006 and the unsecured changed to secured.
My mortgage statement shows Mortgage (130K) and Secured Loan (@ same rate as mortgage) (30K).

kingstreet

Sorry, John.

Even that option seems closed to you then. Both the secured elements will have to be repaid from the sale proceeds.

Thrugelmir

JohnT1974 wrote: »

Unfortunately I am not making any overpayments and the loan part is secured.

Worth considering. As unlikely you'll be earning as much on your savings.

City_Chick_2

Hello,

I have a Together mortgage with NRAM. I am curently out of work and living on Jobseker's allowance. I had the Mortgage Assistance from the Government and, just as my entitlement ended in March 2011, I received £20,000 from my insurer for a car accident I had been a victim of. The £20, 000 was to cover my living costs for the next operation, and reimbursed my expenses to date.

I called NRAM to clear my small arrears (£1,000) and they advised me to give them my £20,000. They said it would reduce my monthly interest, and would be immediately available to me should I need it back.

I called them the following month to ask for some of it back. They then refused.

So basically, they have listened to the recorded conversation and agreed that they have "misled me". However, they are refusing to refund my money.

I'm now referring my claim to the Financial Ombudsman, but my last claim took 9 months to be resolved and, due to all the PPI claims, the FOS are very busy.

I just wondered if anyone might please have any advice on how I can get NRAM to give me my money back?

Thank you.

JohnT1974

wow! I cannot believe this has happened.

Just goes to show NRAM just wanna pay off all the toxic debt at all costs and close. They are not bothered how they get their monies, they just want it and once all cleared, will close.