the BUTT of NRAM and their deals

angeli22

hi all,
i could really do with some advice. i am yet another naive and sorrowful sould who signed up to a northern rock together mortgage. 8 years on my house is on the market with a possible offer but one which will leave me with 17,500 of unsecured debt. the repayment interest of which they are going to hike up once the property is sold and the secured part of the loan paid.

ive no where to live once the deal goes through, i was just wise enough to realise that the arrears were increasing and the ongoing worry of the debt was crucifying me.
what i want advice on is where do i stand with this unsecured debt. dont shout i want to pay it, i have even written to Nram to see if they could leave the loan at its current interest rate if i paid above the agreed repayment level. they refused this offer stating i will have to pay the loan over the remainding term of the existing mortgage at the hiked interest rate.
ive seen that these terms may be classed as unfair...is this the case any advice at this point would be more then welcomed.
ive made a failed attempt at getting on the property ladder, ill have have no house and a massive debt not even considering the other money ive ploughed into the property over the years
i suppose its all a learning curve hey!!!:think:

im not trying to get out of paying im justwondering if the contract and agreement is unfair and if there is anything productive i can do.
cheers A

_Andy_

There is nothing unfair about the contract. The rate going up if you moved the secured away/paid it off would have been detailed in your mortgage offer.

Not what you want to hear I know but you'll either have to a) suck it up on the higher rate or b) see if you can find a personal loan elsewhere at a lower rate.

good luck

angeli22

Thanks for that i understand it was in the contract some people see to think it was detailed properly in earlier mortgages and under the 1974 CCA this could be viewed as unfair terms.

i suppose im so frustrated because ive tried to reach an arrangement with them so that i can get the total amount paid off as quickly as possible by paying off say £500 a month once i move out of my home. but i could only do this if the current interest rate remained. they were completely un communicative re this suggestion which i find deplorable to say the situation they currently find themselves in.
as for getting a loan else where i doubt my current credit rating will allow, even more so once i no longer have a mortgage.

thanks again though

opinions4u

angeli22 wrote: »

Thanks for that i understand it was in the contract some people see to think it was detailed properly in earlier mortgages and under the 1974 CCA this could be viewed as unfair terms.

You knew exactly what would happen in these circumstances. The terms were clear, fair and reasonable.

i suppose im so frustrated because ive tried to reach an arrangement with them so that i can get the total amount paid off as quickly as possible by paying off say £500 a month once i move out of my home. but i could only do this if the
current interest rate remained.

Why does this stop you paying £500 a month?

they were completely un communicative re this suggestion which i find deplorable to say the situation they currently find themselves in.

You want to change what's been agreed. Not them. Why are their actions "deplorable"?

Sorry it's not what you want to hear. But lending money is rarely an act of charity. Why should taxpayers who have seen their money used to prop up NRAM subsidise a lower rate for you?

Thrugelmir

angeli22 wrote: »

im not trying to get out of paying im justwondering if the contract and agreement is unfair and if there is anything productive i can do.
cheers A

Unsure what is unfair. As the unsecured loan enabled you to refinance expensive debt when you took the mortgage out originally.

After 8 years you still have £17,500 owing. That's down to you.

Suggest you seek advice from the CAB or ring the http://www.nationaldebtline.co.uk/

Just click the link.

_Andy_

angeli22 wrote: »

Thanks for that i understand it was in the contract some people see to think it was detailed properly in earlier mortgages and under the 1974 CCA this could be viewed as unfair terms.

i suppose im so frustrated because ive tried to reach an arrangement with them so that i can get the total amount paid off as quickly as possible by paying off say £500 a month once i move out of my home. but i could only do this if the current interest rate remained. they were completely un communicative re this suggestion which i find deplorable to say the situation they currently find themselves in.
as for getting a loan else where i doubt my current credit rating will allow, even more so once i no longer have a mortgage.

There's nothing 'deplorable' and frankly your attitude stinks. You knew when you took the mortgage that if you ditched the secured part the interest rate on the unsecured part would rise. What on earth is 'deplorable' about them sticking to the T&Cs that YOU agreed to?
Regarding the CCA blah blah, stop looking for loopholes that aren't there - you owe the money fair and square and you know it.
Your attitude is disgusting and I won't be posting any more on this thread.

silvercar

You could get a loan elsewhere if the NRAM interest rate is too high.

Simon_gloster

Andy.....i chuckle everytime a N rock borrower isn't happy with t&c's etc.....as I can imagine the blood in your veins reaching 50c. Thanks for making my evening.


Fod the record, I hace written plenty of Together mortgages, clients were thrilled at the time. I remember giving a kfi to one couple, they ripped it up on front of me. All they wanted was the flat and not interested in the finer detail.

Used well, they were perfect for a lot of people.

angeli22

_Andy_ wrote: »

There's nothing 'deplorable' and frankly your attitude stinks. You knew when you took the mortgage that if you ditched the secured part the interest rate on the unsecured part would rise. What on earth is 'deplorable' about them sticking to the T&Cs that YOU agreed to?
Regarding the CCA blah blah, stop looking for loopholes that aren't there - you owe the money fair and square and you know it.
Your attitude is disgusting and I won't be posting any more on this thread.

woah andy i suggest you take your self off and chill out. i have no attitude and was simply asking for advice, regarding a situation and way of lending which obviously got NR in to the trouble theyre in today.
i too am a tax payer for the 2 jobs i do and yes i signed the agreement and yes i am saying i will pay the amount im not looking to get away with that.
i just think the way NR are managing themselves and their customers is deplorable. im trying to find a way to pay and theyre not being helpful.
when i signed the contract i did not understand the limit it would put on my ability to seek out a better deal. and in the current climate where everyone is struggling i thought it would be more productive to be a little more flexible. believe it or not other then this mortgage my fnancial situation is very stable, i dont use a credit card i dont buy things (apart from the house of course) that i cant pay for there and then as i was brought up to believe that if you cant pay for it out right you dont buy it.
please understand im not trying to get the debt cancelled or struck off just some help as to how to get out of an embarrasing situation.

yes my ignorance has cost me dearly hence me wanting to gather as much information as possible to inform my choices and actions now.

angeli22

hi everyone else,
thanks for your advice and comments.
it looks like i will go ahead as planned and pay as much as i can each month now until the loan is paid off. i wasnt looking for an easy out, just trying to become more informed about my choices if any. and check that NR are doing what they should.it wouldnt be the first time a company has done something unfair or not and i now know it pays to be informed.

Simon_gloster

Angeli....what rate would you be going from and to? Changing loan providers needs to be done on a like for like term basis ideally, so if they rate they hike you to is greater than general loan rates, you may as well keep the rock.