NRAM to Virgin Money

Lancashire1

We took out a mortgage with Northern Rock in 2007. We have never missed a payment and we have an excellent credit history.
Around 2010 our mortgage was moved to Northern Rock Asset Management.
We noticed that in July 2012 Virgin Money purchased a further number of mortgage accounts from NRAM.
I contacted NRAM to enquire which mortgages were to be transferred to Virgin. They stated that my mortgage had not been transferred, and when I asked what the criteria for transfer was they stated it was totally random as to which accounts were moved over as it would no be fair to do it any other way?
Has anyone else been told this? I don't feel this is fair as I stated earlier we have always maintained our payments.

grumbler

Lancashire1 wrote: »

We took out a mortgage with Northern Rock in 2007. We have never missed a payment and we have an excellent credit history.
Around 2010 our mortgage was moved to Northern Rock Asset Management.

This is strange as NRAM was apparently created for 'bad' debts:

On nationalisation, the government subsequently split the bank into two, Northern Rock plc, and Northern Rock (Asset Management), into which was placed its bad debt.

I don't feel this is fair as I stated earlier we have always maintained our payments.

Why are you unhappy with this?

Lancashire1

I'm unhappy because we cannot remortgage with NRAM as they no longer hold a banking license and although we have had two mortgage offers approved the loan to value ratio is too low. We are not at present in negative equity but the value of the house has dropped.

opinions4u

grumbler wrote: »

This is strange as NRAM was apparently created for 'bad' debts

Around 80% of Northern Rock mortgages ended up with NRAM.

Nowhere near 80% were bad mortgages.

pleasedelete

Isn't it potentially a bad debt if loan is near value?

grumbler

Yes, this seems to be the case - regardless of the repayment history.

mrchiggles

If you had been transferred to Virgin what difference would it make? If you've still got a poor LTV then you'll struggle to remortgage no matter who you are with...

antrobus

Lancashire1 wrote: »

...
We noticed that in July 2012 Virgin Money purchased a further number of mortgage accounts from NRAM.
I contacted NRAM to enquire which mortgages were to be transferred to Virgin. They stated that my mortgage had not been transferred, and when I asked what the criteria for transfer was they stated it was totally random as to which accounts were moved over as it would no be fair to do it any other way?...

Totally random eh? Do you think that Richard Branson got rich by randomally buying assets? No, they all featured "low loan-to-value ratios and customers who are not [in] arrears". Presumably your LTV wasn't good enought to warrant inclusion; other than taking action to decrease the L or increase the V, there ain't a lot you (or anyone else) can do about that.

JimmyTheWig

mrchiggles wrote: »

If you had been transferred to Virgin what difference would it make? If you've still got a poor LTV then you'll struggle to remortgage no matter who you are with...

I think this is the relevant bit.
I don't see that you'd be any better off with Virgin.

Fruit_and_Nut_Case

Dear Lancashire1, welcome to MSE. :wave:

As a newbie you can't be expected to know this but the forums are divided into separate boards for different subject areas. For example, you have asked your question in the Credit Cards Board.

Your question concerns your mortgage so it would probably have been more useful if you had posted it in the Mortgages & Endowments Board.

May I respectfully suggest that you will get better and/or quicker advice if you post in the correct area next time?

Lancashire1

Apologies didn't realize I was in any particular section. Thank you for the advice.

NRAM actually used the phrase 'randomly selected' and stated it would be unfair to look at each account individually, which I found very bizarre for a financial institution.