NRAM and interest only

willis030710

Hi,

I have just been refused by NRAM to move my mortgage to interest only ( i am out of my fixed line deal) until it sells.

They have made me go through a income and expenditure form with them and declind on the basis i have enough to cover the mortgage (only just)

Can they do that? has any one experienced this problem? any help would be great

originalmiscellany

NRAM are the risky part of Northen Rock - with the "bad" risk people, like some of my friends and I fear you too are in that category - e.g. my friends who took out 125% value of house in a mortgage.
As such, they are entitled to do what they want with their mortgages, and as (again like many of my friends) you may find yourself in negative equity, (Mortgage bigger than value of house currently) they can unfortunately dictate to you even if you think it's unfair.

Solutions:
a) Save your pennies to clear the mortgage to get a better loan to value then remortgage
b) Accept it, and be grateful interest rates are at a historic low
c) Post on the saving forums and other places here to check you've living sensibly and are claiming benefits if you are entitled to them.
d) Lower the house price to entice a sale

None of these are rosy answers but there is not a lot rosy in the economy at the moment I'm afraid.

Thrugelmir

Seems as if NRAM have been professional and diligent in their approach.
If you can afford to meet the contractual payments then you should. When the property sake is complete the equity remaining will be returned to you. So its not as if your are out of pocket.