Porting my NRAM mortgage??

shellyk6666

Does anyone have any experience of porting their NRAM Together Mortgage?

I'm considering downsizing our beloved home to reduce our montly outgoings. We currently have a Together Mortgage with NRAM with approx. £203K outstanding on the mortgage and £26K outstanding on the unsecured loan with 24 years left to run.

I'd love to escape the grips of NRAM but I can't find any plausable way out. This is mainly down to the unsecured loan's interest rate increasing by a massive 8% above SVR if I repay the mortgage only and wish to continue with the unsecured loan on it's own. This would increase my monthly outgoings by around £170 thus cancelling out some of the benefit of downsizing our home/mortgage!

An option that occured to me today was porting my mortgage. This way we'd avoid de-linking the unsecured loan and keep it at the current rate of 4.78% along with the mortgage. If we achieved £220K on selling our current home, £203K to redeem the mortgage, £4K estate agent+sols costs = £13K equity.

If we then purchased a new home at £140K, could I use £7K of the equity as a 5% deposit and have the remaining £6K back? I want to use £5K to repay some of my credit cards and £1K moving costs.

Does anyone know what the process of porting your NRAM mortgage involves? I assume it requires another credit check, does anyone know how strict this would be? I was late with a couple of Credit Card payments just over a year ago do you know if this would write me off? Would I need to gather evidence of income/outgoings again etc?

I've called NRAM who have said porting a mortgage is possible and have requested the porting team give me a call back which'll take up to two weeks. Obviously everyone's situation is different but can anyone else their experience with me?

_Andy_

"This way we'd avoid de-linking the unsecured loan and keep it at the current rate of 4.78% along with the mortgage"

My understanding was that when you unsecure it the interest rate rises dramatically.

Hopelessly_Hopeful

Hi

I have been looking at the same thing, there is very little information on it!

I have spoken to NRAM on a couple of occasions and am currently undergoing a decision in principle.

There is something you need to be aware of, this is that they can't lend you any more £ or % more than you already have. When your sale price is known they will work out your loan to value (LTV) and apply that to the new property.

With this in mind I'm afraid your figures above would not stack up.

203/220 = LTV 92.27%. This would mean 17k equity.

Of a new purchase of 140k the maximum they would lend you is 92.27% LTV which is £129, 178. You would need to use a deposit of £10 882.

From the 17k equity this would leave you with £6118. I think you would find it tough but just about doable to get estate agents fees, solicitors, stamp duty, other searches etc in the £6118.

Occasionally they let people keep 1 or 2k extra but not guaranteed.

The NRAM porting method, because of the index LTV rule they use doesn't leave you with cash left over and unless you are substantially downsizing then this would give you money for costs, many people have to put money towards cost. It certainly doesn't look like the way forward for releasing capital.

Re credit check, they will let you do it with defaults etc if you meet their affordability checks as you are usually in effect reducing outstanding debt albeit moving to a house of less value.

Ah sorry, hold on - just re read your post. Will leave the first descriptor up incase it helps others. However, NRAM combine the mortgage and loan when porting......203+26 =229. This unfortunately means 9k negative equity plus costs to find.

Apologies I don't suppose this is news you want to hear.

Worth logging the call with NRAM to ensure I have the correct interpretation.

Please let us know how you get on.

HHx

Thrugelmir

[QUOTE=shellyk6666;61019627
I'd love to escape the grips of NRAM but I can't find any plausable way out. [/QUOTE]

Get over to the Debt Free Wannabe board and review your outgoings. So you can speed up repayment of your debts. This will give you equity to fund the move.

shellyk6666

Hopelessly_Hopeful wrote: »

Hi

I have been looking at the same thing, there is very little information on it!

I have spoken to NRAM on a couple of occasions and am currently undergoing a decision in principle.

There is something you need to be aware of, this is that they can't lend you any more £ or % more than you already have. When your sale price is known they will work out your loan to value (LTV) and apply that to the new property.

With this in mind I'm afraid your figures above would not stack up.

203/220 = LTV 92.27%. This would mean 17k equity.

Of a new purchase of 140k the maximum they would lend you is 92.27% LTV which is £129, 178. You would need to use a deposit of £10 882.

From the 17k equity this would leave you with £6118. I think you would find it tough but just about doable to get estate agents fees, solicitors, stamp duty, other searches etc in the £6118.

Occasionally they let people keep 1 or 2k extra but not guaranteed.

The NRAM porting method, because of the index LTV rule they use doesn't leave you with cash left over and unless you are substantially downsizing then this would give you money for costs, many people have to put money towards cost. It certainly doesn't look like the way forward for releasing capital.

Re credit check, they will let you do it with defaults etc if you meet their affordability checks as you are usually in effect reducing outstanding debt albeit moving to a house of less value.

Ah sorry, hold on - just re read your post. Will leave the first descriptor up incase it helps others. However, NRAM combine the mortgage and loan when porting......203+26 =229. This unfortunately means 9k negative equity plus costs to find.

Apologies I don't suppose this is news you want to hear.

Worth logging the call with NRAM to ensure I have the correct interpretation.

Please let us know how you get on.

HHx

You've got it spot on. This morning I received my call back from NRAM. I knew that they wouldn't lend me any more than I already have, but I didn't realise that they would combine the unsecured element together with the secured mortgage when working out the LTV %. We just don't have £10K+ to do this. That's the whole point - we're skint and can only just repay our outgoings for the next couple of years, there is no extra for savings! It's a shame really because we'd be reducing the amount owed to NRAM by quite a lot and as we'd be freeing up a lot more of our income they'd be less of a risk of default and we'd be able to repay our other debts really quickly.

I feel particularly trapped. Another option is to sell up and go into rented. It means that the benefit to us would be reduced as the unsecured loan rate will be hiked up to 12.78% (doubling the monthly repayment) and we'd be paying someone elses mortgage off instead of our own.

I might have a look into selling, repaying the mortgage and letting the unsecured element continue. Again the interest rate would be inceased but at least we'd be paying off our own mortgage.

Anyone know if you can get a 95% mortgage if you're not a first time buyer??

shellyk6666

For anyone else looking into porting their NRAM mortgage the bloke said they do a credit check and an affordability check. He explained that the underwriters consider people who have had defaults and CCJs so a couple of late payments are unlikely to be of any concern (he suggested if this is the case then to provide an explanation to the underwiters on application).

Hopelessly_Hopeful

shellyk6666 wrote: »

You've got it spot on. This morning I received my call back from NRAM. I knew that they wouldn't lend me any more than I already have, but I didn't realise that they would combine the unsecured element together with the secured mortgage when working out the LTV %. We just don't have £10K+ to do this. That's the whole point - we're skint and can only just repay our outgoings for the next couple of years, there is no extra for savings! It's a shame really because we'd be reducing the amount owed to NRAM by quite a lot and as we'd be freeing up a lot more of our income they'd be less of a risk of default and we'd be able to repay our other debts really quickly.

I feel particularly trapped. Another option is to sell up and go into rented. It means that the benefit to us would be reduced as the unsecured loan rate will be hiked up to 12.78% (doubling the monthly repayment) and we'd be paying someone elses mortgage off instead of our own.

I might have a look into selling, repaying the mortgage and letting the unsecured element continue. Again the interest rate would be inceased but at least we'd be paying off our own mortgage.

Anyone know if you can get a 95% mortgage if you're not a first time buyer??

Sorry it wasn't what you wanted to hear but glad you have some information so you can start reassessing.

Very little chance on 95%. 85% is the minimum and you'd need to go through a broker most likely.

HHx

Hopelessly_Hopeful

shellyk6666 wrote: »

For anyone else looking into porting their NRAM mortgage the bloke said they do a credit check and an affordability check. He explained that the underwriters consider people who have had defaults and CCJs so a couple of late payments are unlikely to be of any concern (he suggested if this is the case then to provide an explanation to the underwiters on application).

Hi

Through the DMP I have 4 defaults and lots of APs. My track record of paying the much of the debt back over the past three years provided with more positive information than negative which swung the balance and my application has been approved so do hold in there.

HHx

shellyk6666

Hopelessly_Hopeful wrote: »

Sorry it wasn't what you wanted to hear but glad you have some information so you can start reassessing.

Very little chance on 95%. 85% is the minimum and you'd need to go through a broker most likely.

HHx

I had a feeling there'd be something to trip us up lol. Thank you for taking the time to respond, it was really useful.

I do feel grateful that I can continue to pay everything on time (even if it is just the minimum) but fustrated that I am drasticly restricted in my options to improve the situation we are in. In a another couple of years my daughter will start school freeing up the nursery fees so that's our next big financial milestone.

I could probably just about scrape a 10% deposit from sale proceeds but not 15%. I am determined to make a difference so will mull it all over for a couple of days to decide our next steps.

Shell

Foreigner_2

Hi Shell,

I was just wondering if you have got any further with looking into porting your mortgage?

The reason I ask, is my hubby and I have a NRAM Together Mortgage, we took this out in 2006, we are looking to move and was interested to hear what is involved.

We have a repayment mortgage £110,000 + £28,000 unsecured loan, our house has been valued at £129,500 and we are looking at a smaller 2 bed property valued at £107,500, it will be tight moving from 3 bed to a 2 bed house as we do have littleone but we have got to move to somewhere in our price range.

I called NRAM and got a really short, sharp gentleman answer my questions, I felt he wasn't very polite and made me feel like I was a nuicsance asking so many questions and I didn't ask all the questions I wanted to know.

We looked at the option of remortgaging and keeping the unsecured loan, but the interest rate would go up so to my understanding we would owe more than we already do on the loan.

Did you look into this further would be great to hear how you are getting on?

Sarah