NRAM wont split mortgage & loan!

watcher27

Hi,
We are in a bit of a pickle financially and are considering bankruptcy as a last resort.
But in the meantime CCCS have suggested we write to our creditors offering them a token £1 a month payment. But our NRAM mortgage also is made up of an unsecured loan. The 2 are shown as seperate elements on our statement but all comes out together on the direct debit and the loan is linked with the mortgage in terms of interest rate etc.
The CCCS said we need to get NRAM to split the loan and mortgage up into 2 seperate payments so that we can then offer them the £1 month for the unsecured part. But NRAM say they cant (or wont) do it?

Anyone have any experience with this?

watcher27

Anyone?
to make it clearer, Our mortgage account with NRAM is made up of our £172K morgage and then a £16.5K unsecured loan, but the payment comes out as one, which is currently £1060 a month.
Can we get NRAM to split them up into seperate accounts & payments? They show as seperate elements on the statement.

Many thanks

JustinCredibleGillespie

Bump.................

DVardysShadow

More difficult with a direct debit. You need to stop it and pay by cheque. And with the cheque [or 2 separate cheques], send a letter, keeping a copy, stating what the payments are to be allocated to.

peb

Sorry but it can't be done.

With Northern Rock the unsecured credit agreement is actually secured to the mortgage agreement; they do it that way on purpose so that they can attach the loan to the mortgage if something goes wrong.

As with all debts (be it car loan credit card or whatever) if you have a mortgage with the same company their terms and conditions will mean that in case of default they can add the debt to the debt under the mortgage.

watcher27

peb wrote: »

Sorry but it can't be done.

With Northern Rock the unsecured credit agreement is actually secured to the mortgage agreement; they do it that way on purpose so that they can attach the loan to the mortgage if something goes wrong.

As with all debts (be it car loan credit card or whatever) if you have a mortgage with the same company their terms and conditions will mean that in case of default they can add the debt to the debt under the mortgage.

Ahhhh, i had a feeling that was the case :-(
So what are my options regarding making a token £1 month payment for the unsecured part of the mortgage? Im guessing there arent any :mad:

user007

I would suggest you cancel your DD and start paying via Standing Order, or phoning and paying with your card every month or even by cheque.

Your mortgage is a priority debt so ensure this is paid before the last day of each month.

Are CCCS acting on your behalf, or just providing you with advice?
I've personally found that its a lot easier and quicker to have the likes of CCCS or Payplan act on your behalf, they no doubt be able to get the unsecured interest frozen for you.

With regards to your unsecured loan that's exactly what it is 'unsecured' NRAM would have to apply for a CCJ against you and then apply for a charging order to get this loan secured against your property.

IF you are struggling to pay, NRAM will ask you for details of your Income and Expenditure, if this shows you cannot afford to pay the full monthly contractually payment then they may accept token payments.

I hope this makes sense.....

user007

Actually getting back to your original question, technically your mortgage and loan do show as two separate elements on NRAMs systems.
I don't think there is anyway of this showing on your mortgage statement.

Try calling them again and ask to speak to collections or the financial difficulties team. ( :

peb

These are a unique product, the idea was to obtain an unsecured loan which would "top up" the amount borrowed under mortgage finance. However they very cleverly structured the whole package in such a way to ensure that the loan was part of the mortgage debt. I have no knowledge of the OPs position as such but think it very unlikley they will be seperated and the loan will have to be counted as the mortgage as priority secured debt. However do ask teh question of NRAM - it doesn't cost to ask!

chris2582

Hi, I have a simmilar issue, we owe in total 90k, 17k unsecured loan, 73k morgage, if we move the morgage away from nram they put the interest on the loan up to 10%. yet we can't borrow 90k on the house again due to the fact house prices have crashed and its only worth £70k tops. stuck in the #### springs to mind. Any ideas anyone? we currently are paying £600 a month and have 18 years left.

wannabee_in_credit

It's a really rubbish situation to be in. I too am stuck with NRAM as I don't have enough equity in the house to move the mortgage...
I sympathise completely but have no idea what can be done about the situation.