NRAM Mortgage voluntary repossession

Toplolv

Hi my wife and I are moving abroad in around 6 months. We have been trying to sell the house for the last 18 months to no avail.

We have had the house since 2007 and have come to the end of the fixed rate period.

We have a NRAM together mortgage total £127k (£112k secured £14k unsecured) the house is on the market for £114950 we have had viewing but no offers. We cant rent the house out as the rent would not cover the mortgage payment. Our credit history is already shot to bits from when my wife was redundant.

We are sending money out to the "new" country to set up life out there however we are running out of time to sell the house over here. Once we move we will not be moving back here (other than the odd holiday to see family)

We have contacted NRAM regarding voluntary repossession. they say no matter what we are still liable for any short fall - which there will be, and we will have to sign paperwork to say we agree to this.

We may not be able to afford repayments to NRAM as well as the mortgage in the new country, however we don't want to go Bankrupt as we will have to declare assets in the new country and therefore put our future life at risk.

Please could we get some advice as to what to do? should we give the house back to NRAM sign the forms and negotiate an affordable repayment, or do we just post the keys back on the way to the airport with no forwarding address?

PS: I am after advice not a lecture about ethics!

DevCoder

Are you sure that NRAM dont have DRA's whether direct or third party in your new country? You may well find the debt recovery will just follow you.

Nice to know that everyone else should pick up your pieces though. When you post on a public forum you cant dictate the responses.

Thrugelmir

Toplolv wrote: »

We are sending money out to the "new" country to set up life out there however we are running out of time to sell the house over here. Once we move we will not be moving back here (other than the odd holiday to see family)

Which country?

Debt collection is international.

PS: I am after advice not a lecture about ethics!

Life has a habit of coming back to bite you. Hard!

Toplolv

the country that we are heading to does not have an agreement with the UK so our credit rating and debt shouldn't follow. NRAM also told me that they would not sell the debt to a different country.

DevCoder

Really, you think NRAM will just write the debt off? Not having an agreement is different from NRAM not having DRA's in the country, they can even keep the debt on their book and outsource the recovery to third parties hence not selling it.

Toplolv

We would be going to New Zealand

Thrugelmir

Toplolv wrote: »

the country that we are heading to does not have an agreement with the UK so our credit rating and debt shouldn't follow. NRAM also told me that they would not sell the debt to a different country.

You'd better hope that besides providing details of your assets that you aren't credit profiled as well. If it's residency that you seeking.

Toplolv

we will not be credit checked, its not part of the visa process

DevCoder

No, but you will be asked to prove your past 12 month credit worthiness (ie 12 month statements and proof of incoming/outgoing expenditure) and/or your ability to "pay your way" under their Skilled Migrant and Business and Investment visa policies.

I assume you aren't going to NZ under any of those?

Toplolv

No my wife is from NZ so its a visa for me through marriage. we did have to provide statements which was fine as we are both earning good money in the UK.

Paying the mortgage isn't the problem. we can afford to pay our debt however we cant afford to pay debt in the UK AND NZ living expenses as well.

Thrugelmir

Toplolv wrote: »

we will not be credit checked, its not part of the visa process

I'm unsure why you concerned about the shortfall then. Likewise bankruptcy. As you can jump on a plane and leave your debts behind.
Suggests that what you do.

Just hope that you don't have a need to return to the UK one day. I've known plenty of people for whom the grass isn't greener