NRAM/Northern Rock issue

TheHutches

Hi,

I hope someone out there can help us. Me and my wife got an "all together mortgage" with Northern Rock in 2006 so we could get on the property ladder. 95% was for the mortgage and the rest was a loan to pay the deposit and consolidate debts. In 2009 when Northern Rock went wrong we got switched over to "NRAM" and forgotten about.
So now, nearly 7 years later we are still stuck with NRAM not being able to leave because of the loan. We have 2 kids now and want to move house to somewhere bigger. Only we can't because if we move our mortgage our loan goes up to 16% APR and the repayments would be to much. The amount we repay we could own a house worth twice as much as ours is now. Between us we earn over £50,000 a year and we live in a £100,000 mid terrace.
Does anyone have any advice?

kingstreet

Presumably, you don't have enough equity in the property to make this move possible?

Did you save money when you consolidated your other credit commitments into the Together unsecured loan? What happened to the savings? Did you put them into a savings account, such as an ISA?

What other savings have you accrued while mortgage rates have been lower, over the last four years? The Together rates were around the 7% mark in 2006, so you should have seen your payments fall when any initial rate ended.

R_P_W

How much you owe on mortgage and loan?

Can you not overpay to bring the balance down faster?

I assume you have a deposit saved up for a new property?

amnblog

I love the 'all together' name for the Northern Rock 100%+ mortgage.

It was called the Together mortgage, but 'all together' is a more apt title as we all got together to bail them out.

TheHutches

After we had consolidated the debts, paid the deposit and done some work on the new house there was no money left over. The money we saved by clearing our other debts is what made it possible to afford to make repayments on a big mortgage. When we eventually ended up on a variable rate and our repayments came down we began to save, however them saving were taking up by two years of bad luck including broken heating and broken engines. When we finally decided to give up trying to move and just settle here so we had 2 kids which used up the last of what we saved. My wife is due to go back to work next month which will put us back on track with the ability to save a considerable amount every month again.
We have about £30,000 in equity but NRAM will only let us have 88,000 to buy somewhere else as that is what is left on our current mortgage but that wouldn't improve our situation.
My plan is to over pay on the loan once my wife is back to work full time but that is still going to take ages to clear and I was wondering if there was anything else we can do to speed things up.
We are very good with money we don't live a lavish lifestyle, we have had one cheap local Holiday in 4 years, we don't go out or drink or buy expensive gadgets. We work hard and get by.

R_P_W

So, how much do you owe on the mortgage? How much on the secured loan? How much saved?

When you say you have 30k equity - so if you sold your house today and paid off the mortgage and loan you would have £30k left over cash?

TheHutches

We owe 88k on the Mortgage 28k on the loan. We only have 2k savings now as my wife is at the end of her maternity leave and our savings have been covering her wages.
The equity didn't include what we owe on the loan, with the loan included we are still negative......lets pray for house prices rising eh?

antrobus

TheHutches wrote: »

....We have about £30,000 in equity but NRAM will only let us have 88,000 to buy somewhere else as that is what is left on our current mortgage but that wouldn't improve our situation.....

That's because NRAM aren't in the mortgage business anymore. If you have £50k of salaries and a clean record, someone else might well offer you more.

TheHutches wrote: »

..lets pray for house prices rising eh?

Well that was Northern Rock's Plan A.:)

TrickyDicky101

You have substantial net debt rather than net asets so you need to shelve any plans of moving and concenrate on clearing your loan and mortgage as fast as you can.

I'm sorry to say but this has nothing to do with NR - you borrowed the money and you have failed to pay sufficient back over the years to accommodate your rising expectations.

TheHutches

Trickydicky. How are NR not to blame. You say it like we have done something wrong. If taking a risk to get on the property ladder is a crime them we are guilty. The way I see it is I took a mortgage with Northern Rock and paid it every month without fail. Northern Rock then went tits up, not because of anything I did but because of bad business and had to be bailed out by the tax payer. They then change their name NRAM and stopped offering customers new deals leaving them stuck in a rut. Then a new company ironically call "Northern Rock" is created, I would imagine with all the same people running it that messed up the last Northern Rock (and probably walked away with massive bonuses), and surprise surprise they are taking on all new customers while us "NRAM" customers are left rotting in a basement somewhere.

You say I failed to pay back enough to accommodate my rising expectations? You're a joker pal, I have earned two medals fighting for my country, now on a daily basis I put my safety on the line working for the government with no sign of a pay rise...ever, not even to match inflation, my "rising expectations" as you put it, are to move to a house closer to a good school so my children can have a better future. It's people like you with your rose tinted opinions that infuriate me. I do nothing but work hard and look after my family. I came on here looking for a bit of advice but instead I get you telling me i'm in the wrong because I didn't pay this corrupt NRAM/NR more money than I needed to? Tell me Sir do you by any chance work for a bank?

R_P_W

TheHutches wrote: »

Trickydicky. How are NR not to blame. You say it like we have done something wrong. If taking a risk to get on the property ladder is a crime them we are guilty. The way I see it is I took a mortgage with Northern Rock and paid it every month without fail. Northern Rock then went tits up, not because of anything I did but because of bad business and had to be bailed out by the tax payer. They then change their name NRAM and stopped offering customers new deals leaving them stuck in a rut. Then a new company ironically call "Northern Rock" is created, I would imagine with all the same people running it that messed up the last Northern Rock (and probably walked away with massive bonuses), and surprise surprise they are taking on all new customers while us "NRAM" customers are left rotting in a basement somewhere.

You say I failed to pay back enough to accommodate my rising expectations? You're a joker pal, I have earned two medals fighting for my country, now on a daily basis I put my safety on the line working for the government with no sign of a pay rise...ever, not even to match inflation, my "rising expectations" as you put it, are to move to a house closer to a good school so my children can have a better future. It's people like you with your rose tinted opinions that infuriate me. I do nothing but work hard and look after my family. I came on here looking for a bit of advice but instead I get you telling me i'm in the wrong because I didn't pay this corrupt NRAM/NR more money than I needed to? Tell me Sir do you by any chance work for a bank?

Woah. Hang on a minute!

It is simple maths. The amount you borrowed was probably more than the value of the property - sorry but never a good idea!

From what you describe you are not in a position to move as you are actually in negative equity.

I dont see how NRAM are corrupt.

No one is saying you don't work hard.

The only advice I can offer is that you need to look at overpaying either or both the mortgage/loan