NRAM 0% interest

tahoe

Hi
I would like to know if anyone else has been refused temp interest only due to financial difficulties with NRAM? We have a repayment mortgage but my partner, who works in construction, has not been able to secure a permenate job during this recession. We have been on interest only for the past year as I am able to pay it with only my wage, it ends on 1st May when the payments revert to the full amount which I am totally unable to pay on my own. I am now very worried that we are going to end up in arrears and have our house repocessed. If we are offering to pay interest only, and I have never missed a payment in the last 9 years, can they take my house?

opinions4u

They're a long way from repossessing your property. You'd need to be at least 2+ full months in arrears. I'm assuming no arrears have built up while you've been on IO.

Equally, they're under no obligation to allow you to pay interest only. 12 months of concession so far and circumstances haven't changed. As it stands, you can't afford the contractual mortgage payment. They can't be expected to accept less forever.

So you might want to consider an extended term, selling up, identifying other sources of income (second jobs, part-time jobs), reducing other outgoings etc.

Take a look at www.makesenseofcards.co.uk and complete a statement of affairs.

Then post it on the Debt-free Wannabe part of this forum. It could help to identify potential savings.

rising_from_the_ashes

tahoe wrote: »

I would like to know if anyone else has been refused temp interest only due to financial difficulties with NRAM?

Sorry but that's not really correct as you have already had 12 months at 0%.... agree with Opinions that they will not (and can't really be expected to) let a concession go on for an indefinite period and they have actually been fair in already granting the 12 month 0% period (sorry as I know that's not what you want to hear).

Have you looked at other options of increasing your income - do you have a spare room you could rent out? Could your OH get a part time job to tide you over etc?

tahoe

Thankyou very much for the advice. It is pretty much what we expected.
Thanks again:)

rising_from_the_ashes

Do you have a spare room?

If you have kids, could they share for a bit?

If so, seriously consider it .... http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804 - it would help a lot.