NRAM advice, interest only and consent to let

amn_2 · 8 October 2013 at 7:07PM

Well we are planning to move house in the next 6-12 months and I've been playing with some figures. I'll briefly outline my plan but in short I'm interested to know if anyone has experience with NRAM consent to let and switching to interest only.

Basically we have been looking at properties in the 220-250k bracket. We currently have a bit of negative equity and the plan is to clear this and the sale price should just clear the remaining mortgage, we are saving at the same time to aim for 5% and use the new help to buy schemes.

I've been reviewing this tonight and due to the poor interest rates on offer I have been thinking we would be better with a cheaper property (160-180k) and a 10% deposit. Doing this would increase disposable income every month and, from using various calculators, would appear to give us the option of holding on to our current property to let out. It needs more research but I think it would end up being a deficit of around £70 a month after consent to let fees, insurances etc are taken off the rent.

This is tempting as it opens up the possibility that in a few years the market may be better and we can recoup some of the money we have lost (a whole other debate there!). We are aware of the dangers of void periods, defaulting tenants etc.

If NRAM would let us go interest only then I believe we would go from a deficit to about an £80 surplus, far more palatable. So has anyone done this successfully or is it just a straight no for interest only these days? I intend to talk to them in the next couple of weeks but interested to see if I can save myself some time on hold :rotfl:

kingstreet · 8 October 2013 at 7:12PM

NRAM is part of UKAR and is tasked with returning funds to the taxpayer, ASAP. Unless you can display a need for interest-only evidenced by financial hardship, it will not be allowed.