Worried about NRAM SVR - can I move?

Sofa_king

I have a NRAM together mortgage of 149k with an unsecured loan of 20k - the NRAM SVR rate is 4.79 and in total we pay 977 per month. Our rate came to an end a couple of months ago.

Rather stupidly we had around a year on interest free and also a year of payment holidays as we had two chilldren - it all seemed like a good idea at the time however we are kinda paying for it now.

I am worried that the NRAM SVR is going to rise and take our mortgage with it (I suppose this is inevitable).

No credit problems - I have one loan at around 5k and a credit card which I am chipping away at.

Any ideas on what we can do? will another lender give us a good rate?

downhiller

edit: ignore

beecher2

How much is your property now worth? If more than around 190k, you could possibly remortgage elsewhere with a 90% LTV (subject to credit file, affordability, salary multiples etc)

If it is nearer £165k, you could keep the loan with NR (though you'd pay a higher interest rate on it than you are at the moment) and try to to remortgage elsewhere.

If it is worth less than £165k, then you're stuck where you are.

If you need help budgeting in order to pay off your debt, and start overpaying on your mortgage, then you could post a Statement of Affairs to get help with your budgeting.

_Andy_

Sofa_king wrote: »

I have a NRAM together mortgage of 149k with an unsecured loan of 20k - the NRAM SVR rate is 4.79 and in total we pay 977 per month. Our rate came to an end a couple of months ago.

Rather stupidly we had around a year on interest free and also a year of payment holidays as we had two chilldren - it all seemed like a good idea at the time however we are kinda paying for it now.

I am worried that the NRAM SVR is going to rise and take our mortgage with it (I suppose this is inevitable).

No credit problems - I have one loan at around 5k and a credit card which I am chipping away at.

Any ideas on what we can do? will another lender give us a good rate?

Impossible to say without at least knowing your property value

Sofa_king

Totally missed out that our house is worth 165k

Sorry about that and many thanks for the replies !

beecher2

You're at a 90% LTV with this valuation (if you keep the loan with NR), so would have to be confident that a new lender would agree with you.

You would have to weigh up the savings you might make with the extra you'd pay on your loan once you decouple it.

Not sure if you can get much better than 4.79% with such a high LTV to make it worthwhile.

_Andy_

Sofa_king wrote: »

Totally missed out that our house is worth 165k

Sorry about that and many thanks for the replies !

Thanks - now what's going to be key here is that valuation - how confident are you? I.e. where did the figure come from?

Cheers

Sofa_king

It was valued at 165 five years ago - the houses around us have retained their value !

Am I being a bit naive with this ?

beecher2

Sofa_king wrote: »

It was valued at 165 five years ago - the houses around us have retained their value !

Am I being a bit naive with this ?

Possibly, especially as you can't afford for the valuation to be below 165k.

Why don't you phone up NRAM and find out how much the loan would cost you if it were decoupled. Then you can work out what you need the rate to make a move worthwhile, and see if that's possible for a 90% Ltv