N-Ram-Consent to Let & Interest Only

missdisco

Hi there
I have never posted here before, I am hoping someone will be able to offer some advice.

I currently have a 1 bed flat, which has been for sale since March 2011 as I found out I was expecting a baby. Alas, there is a plethora of flats for sale in the area i live and we have had no interest in the property despite dropping the price.

I bought the flat for 82k in 2006, but is now valued at 75k. There is 74 k outstanding on the mortgage with N-Ram over 19.5 years.

So we have now got a 2 month old baby and need to move to a bigger place. N-Ram have approved our consent to let application on a permanent basis and I have a letting agent in place, it is likely the property will be let in Feb. So this is when we will be moving to a bigger property.
I called N-Ram today to request that the mortgage be moved onto an interest only. They advised that they could only do it if a) I could prove financial difficulty (we aren't just now but will be if have to continue with the repayment mortgage + rent on an additonal property) or b) could prove I had a replayment vehicle like an endowment property.

My questions are:
a) What is a repayment vehicle?
b) How/where do I get one, I have searched endowments and there doesn't seem to be any available....
c) How much is it likely to be?

I was advised by an IFA that there would be no problem moving onto interest only as the property is essentially an investment.

Anyt help would be greatly appreciated!

Thrugelmir

In your financial position a repayment mortgage seems the only option open to you. Any alternatives would cost at least the same or possibly more.

Since 2006 ideally you should have been paying something off your mortgage. If you intended to move a larger property as you now do.

If letting the property isn't profitable. Then you might as well bite the bullet on the loss, and negotiate settlement with NRAM.