NRAM letter of release for endowment

kaikoura2013

Hi,

I took out an endowment/interest only mortgage with Northern Rock/NRAM 15 years ago. At least 6 or 7 years ago I converted to a repayment mortgage to avoid a shortfall. I kept the endowment payments up and have now secured an offer of £11,000 for it with the view to covering a gap in employment, with my understanding that there was no interest in the endowment.

Last year I temporarily switched to a part and part mortgage, as my income was very low, with an agreement to revert back to a repayment in December this year.

However NRAM are refusing to release the letter of no interest for the endowment while I am on this temporary agreement. Given that I switched to a repayment years ago and am on a temporary agreement, are they allowed to do this?

Thrugelmir

As the policy is assigned to them, and it is required to cover part of the balance to be repaid then, yes. There's no certainty that the temporary arrangement will be revoked.

kaikoura2013

Thank you - they have promised to supply the letter if I move back to a repayment mortgage, but yes like you say there is no guarantee they will revert.

The case I am going to present to them is that if they move me back, I can use the lump sum to secure payments for around 24 months, but if my employment status has not changed by say 6 or 7 months then I will seek to put the property on the market, given that it is in a desired area and will sell. Are they likely to baulk on that, do you think?