Mram

sshaw101

Hi all,

We are currently on the SVR and our house is on the market to sell.

Due to this and other circumstances we wanted to rent out our property instead of selling, with a view to sell in a year or two. We spoke to NRAM to drop our repayment mortgage to interest only, which they will not do. Has anyone else experienced this?

It appears that NRAM will only drop to interest only if we default and also speak to other unsecured lenders to drop our payments, we are not having difficulty paying our bills but want to drop to interest only as we want to sell/rent.

Why do they want us to default? Has anyone managed to recently change to interest only with NRAM? We don't have enough equity in our house to re-mortgage to an interest only deal with another provider.

Many thanks

sshaw101

just noticed I said Mram in the title - I obviously meant NRAM but can not seem to change it - can the MODs do this?

DannyboyMidlands

Why not just sell it now? Why go through all the hassle of setting up the rental and then sell within a year or two?

sshaw101

if only it was that easy to sell it now!

Rental will be the quicker option for the short term.

DannyboyMidlands

It is easy - if the price is right.

sshaw101

true this is our other option - but don't really want to be forced to sell for lots less than it is worth - but it is something that we are considering so we can get rid if the rental route is a no go.

TrickyDicky

Will NRAM let you rent the house out? what will you do if repairs need doing? what if the tenants refuse to pay? what about if they trash the place?

Letting is not a quick and easy solution.

sshaw101

missing the point really - want to know if anyone has recently (last month or so) been able to switch NRAM mortgage from repayment to interest only.

Thrugelmir

sshaw101 wrote: »

also speak to other unsecured lenders to drop our payments,

That's the crux of your issue. NR will still expect to receive mortgage payments in full.

we are not having difficulty paying our bills

But don't have enough money to meet the mortgage repayments even with the rental income you will receive.

Thrugelmir

sshaw101 wrote: »

but don't really want to be forced to sell for lots less than it is worth

The property is only worth what someone will pay you for it.

Suggest you analyse your expenditure and find ways of cutting back in order to reduce your unsecured debt and / or overpay the mortgage.

Human nature is to speculate out of a difficult financial position rather than apply basic common sense and impose austerity on ones self.

poppy10_2

sshaw101 wrote: »

missing the point really - want to know if anyone has recently (last month or so) been able to switch NRAM mortgage from repayment to interest only.

Not really missing the point. You won't be able to switch to interest only if you are fraudulently bypassing the requirement to get consent to let.