NRAM help

Babs22

hello - can anyone help?
When we first took a mortgage 10 years ago, we took a 100% one with Northern Rock..... after a couple of years, we fixed for 7 years, just before the collapse. We've never missed an instalment (although we have in the past used the payment holidays) - We got shunted off to NRAM when it was divided and I am worried that this is a reflection on our credit rating? The deal runs out next year, so I am concerned about what will happen?? Sounds silly, but even after being a homeowner for a decade, this stuff still frightens me!

loubel

AFAIK having a mortgage with NRAM shouldn't make any difference if you want to remortgage when the fixed period ends (certainly it didn't for us). Do you know how much equity you have in your property now?

Babs22

about £35k, I would think....

loubel

That's good. Work that out as a percentage of the property value and have a browse of some mortgage sites to get an idea of what rates are available at your loan to value. It may be that you are happy to stay on NRAM's standard variable rate though once your fix ends (it was lower than our fixed rate).

mrchiggles

Credit rating wasn't used when they split the mortgage book.

Babs22

oh right....how was the decision made then?

Thrugelmir

Babs22 wrote: »

oh right....how was the decision made then?

The majority of the mortgage book was split on whether the mortgage debt had been securitised or not, and/or whether the mortgage was a high % LTV interest only mortgage.

opinions4u

80% ended up with NRAM.

mrchiggles

Given how much of the book was securitised it was inevitable. You could argue that if you're in NRAM then you must have been good enough to be selected for securitisation so it's a good thing