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NRAM- end of fixed rate period dilema
dinksmum
Posts: 4 Newbie
Hello, we were one of the luck/unlucky people to get the 'amazing' 110% mortgages back in 2006 with Northern Rock who has since gone bust. We are now with NRAM. _pale_
our 5 year fixed rate @ 5.99% is soon to come to an end. our repayments each month for our mortgage plus the unsecured loan is SOOO much we really want to reduce it. _pale_
NRAM have said we have a few options:
let the fixed rate roll over to thier variable rate which is 4.79% and has been for last two years, have the risk this will go up and this will only reduced our monthly payment by £120.00
Go onto interest only for up to 1 year which would reduce our monthly payment to about £750 per month but what the consequences of this are, I just dont know? :question:
extend our mortgage by another 5-10 years meaning we would probably be paying our mortgage up until retirement age, if they let us do this. :eek:
We contacted our mortgage adviser who 5 years ago got us this deal and she said things are VERY different you can only get a mortgage these days for 75-80% and you must have savings etc but we are in it up to our eyeballs.
We had a baby 2 years ago:j and along with all the cost involved in that plus having payment holidays on loans and the mortgage our outgoings are so much more we have other debts and I just dont think we would be able to get another mortgage with another provider we would have to stick with NRAM.
What do we do? interest only for a year to get a bit straight or extend the mortgage or just plod along paying the variable 4.79?:question:
comments would be appreciated, especially if you are in the situation yourselves._pale_
our 5 year fixed rate @ 5.99% is soon to come to an end. our repayments each month for our mortgage plus the unsecured loan is SOOO much we really want to reduce it. _pale_
NRAM have said we have a few options:
let the fixed rate roll over to thier variable rate which is 4.79% and has been for last two years, have the risk this will go up and this will only reduced our monthly payment by £120.00
Go onto interest only for up to 1 year which would reduce our monthly payment to about £750 per month but what the consequences of this are, I just dont know? :question:
extend our mortgage by another 5-10 years meaning we would probably be paying our mortgage up until retirement age, if they let us do this. :eek:
We contacted our mortgage adviser who 5 years ago got us this deal and she said things are VERY different you can only get a mortgage these days for 75-80% and you must have savings etc but we are in it up to our eyeballs.
We had a baby 2 years ago:j and along with all the cost involved in that plus having payment holidays on loans and the mortgage our outgoings are so much more we have other debts and I just dont think we would be able to get another mortgage with another provider we would have to stick with NRAM.
What do we do? interest only for a year to get a bit straight or extend the mortgage or just plod along paying the variable 4.79?:question:
comments would be appreciated, especially if you are in the situation yourselves._pale_
0
Comments
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Maintain the mortgage and unsecured loan on a repayment basis and extend the term.
Pay a visit to the Debt Free Wannabe board for support and advice. As ultimately you have to take control of your own personal finances and make the right decisions.0 -
that is v.helpful thank you.0
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It just doesn't sound like you can afford this house. I'd sell it and rent.0
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