NRAM Unsecure Loan Porting. Together Mortgage

Ben9981

We were hoping we could get a little bit of advice.

We’re currently in the process of selling our house (offer accepted). Normal case, no deposit saved to start a new mortgage package so we’re planning to port the existing NRAM deal to the new property.

Currently are existing mortgage is at: secured £168,767 and unsecured £27,975.

We are selling at £210,000 and purchasing at £166,500. NRAM has confirmed they will provide 93% of the purchase price (calculated proportionally against the outstanding mortgage and accepted offer), leaving us the deposit of £11,800 to cover the outstanding finance.

NRAM confirm the new mortgage offer is £153,691.00 secured and £1000 unsecured.

We had always thought the existing unsecured loan from our original mortgage could always be ported to the new property with us maintaining the monthly payments etc. NRAM have a very different view confirming that the whole original mortgage outstanding finance has to be cleared (£196,285.85 ) with the sale of the house. Looking at the online forums no one else has had this problem before?

Has anyone been in the same situation with NRAM or should the loan be portable?

Thanks in advance.

Ben

holly_hobby

Yes thats correct - the total borrowings, secured and unsecured, need to be redeemed upon property sale, or remortgage.

In respect of porting, what you are actually referring to is transferring of the mortgage product (ie fixed, tracker, discount, etc), to the new borrowings sought, NOT the transferring of the existing mge borrowing/debt itself (in this case both secured & unsecured element).

The advantage of the together loan re the unsecured element, is that if there is insuffient equity to redeem it on moving, it may be essentially tsfd into a true personal loan, via the loading of the pay rate to make it more akin to PL rates (the % loading to the mge rate on departure will be in your T&Cs).

Sorry ... I know that won't be music to your ears !

Hope this helps anyway

Holly

Thrugelmir

Ben9981 wrote: »

Has anyone been in the same situation with NRAM or should the loan be portable?

As you are downsizing. Then NRAM appear to have offered you a fair deal in allowing to roll over a proportion of the unsecured loan.

NRAM can apply whatever terms they want on the new mortgage. So although it may appear harsh to you ay the current time. May well do you a favour in the longer term.