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Nram help!!
kellycraig
Posts: 1 Newbie
hi all this is my first post. we have a northern rock together product from 2006. We have never missed or been late with a payment we have 67000 intersest only mortgage and 15000 unsecured. We need to sell up and move (we bought the house a single couple and now have 2 children) We have had an offer of 70000 for the house (its been on the market for 2 n half years) we have found a house we want to buy. We spoke to NRAM about porting the mortgage and they said this was fine but now that we have made an offer on the new house they are refusing to port.
They have said that we need to up the payments into our savings to prove we can pay the mortgage at the end of term which we agreed to then the said we had failed on affordability and would not port the interedt only. Someone else at NRAM suggested chaging onto a repayment mortgage which we agreed to they then said we had failed on affordability. The house we want to buy is the same price as the one we are selling. We cannot apply to any other lenders because we are in negative equity and do not have the funds to pay back the unsecured loan and cannot afford the inflated interest rate if we break the together product.
NRAM have basically said we either stay where we are (which is becoming more difficult as my children get older) or sell up and find another mortgage provider which we cant do as we'll be stuck with a 15000 loan, no deposit, and failing affordabilty tests we prob wouldnt find anyone to lend to us again.
is there anyone out there with any suggestions???
They have said that we need to up the payments into our savings to prove we can pay the mortgage at the end of term which we agreed to then the said we had failed on affordability and would not port the interedt only. Someone else at NRAM suggested chaging onto a repayment mortgage which we agreed to they then said we had failed on affordability. The house we want to buy is the same price as the one we are selling. We cannot apply to any other lenders because we are in negative equity and do not have the funds to pay back the unsecured loan and cannot afford the inflated interest rate if we break the together product.
NRAM have basically said we either stay where we are (which is becoming more difficult as my children get older) or sell up and find another mortgage provider which we cant do as we'll be stuck with a 15000 loan, no deposit, and failing affordabilty tests we prob wouldnt find anyone to lend to us again.
is there anyone out there with any suggestions???
0
Comments
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Kelly - you've done everything I could suggest and you're absolutely spot on. If you can't afford the increased payments to the unsecured loan if you delink it, that's pretty much your last option gone. Even if you could, you'd still need a 10% deposit as a minimum.
Only other housing option is sell and rent and try to pay off the unsecured element while renting.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
You need to repay the debt as simple as that. No easy answers I'm afraid to say.
Your mortgage will be at a higher rate of interest than you are earning on your savings. So focusing on reducing the mortgage is the way forward.0
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