Friend stuck with NRAM

want2bmortgage3

Hi,
Don't think he has many options, but you never know.
My friend is stuck on NRAM SVR @ 4.79% with a very high LTV, I'm guessing it's 90-95%.
Add to this the fact he left his job to become a care for his child while his wife works about 25 hours a week, and no other mortgage company will give him a chance.
This is despite paying the mortgage payments for years and not missing any!
Basically he's paying about £150 more a month on this SVR than if he could get a deal elsewhere!
Is there anything he can do?
Thanks!

R_P_W

How do you know what deal he could get elsewhere if you don't know what his LTV is?

kingstreet

The best rate for a 90% remortgage is 3.64%. There are fees of £1,800. You need to take them into account as it would take 12 months of £150 savings to break even.

If there is insufficient income to cover the affordability of the mortgage, there isn't an awful lot you can do about it. Being able to afford it and being able to evidence you can afford it based on a lender's requirements are two different things.

They need to earn more money to make overpayments to reduce the mortgage to a level where more lenders are interested in both the loan to value and the affordability.

want2bmortgage3

I am estimating the LTV based on what his house is worth, a guess.

So do you think he should struggle on with the mortgage or is there anything to be gained from selling the house?

The big loss would be the nice location he lives in, but would there be any benefits to losing the mortgage?

He does plan to go back to work full time in a few years.

kingstreet

What benefits are they entitled to? Are they claiming tax credits? If so, would they help to prove affordability?

Selling means he gets out of the mortgage, but would his housing situation ease? Would there be rent to pay? How much? Would that be viewed as affordable?

TBH this is too difficult without a full story and at arms-length. Your friend needs to talk to a broker for the full picture to be seen.