NRam mortgage end of term

Structural

Hi all.

Father in law has a mortgage with NRAM, it was taken out with northern rock then transferred. His fixed period has ended and he wants to take a new fixed deal. Is there anyone who has taken on the NR mortgage customers? or is it a case of finding a broker to find a new company and doing a full application?

He wants to take the easy option so would just prefer to call current lender and say "fied rate has ended, can you switch me to the current one please"

Thanks
S

Foxy-Stoat_3

They'll switch to the standard rate anyway, when my fixed rate ended my payments dropped by £80.

kingstreet

NRAM is tasked with running down the old NR book and it has nothing to offer. It's standard rate or nothing.

If he wants another deal, he'll have to remortgage elsewhere.

Structural

Thats what I thought, his fixed deal ran out 12 months ago and he has been on SVR since but has now decided he wants to borrow a bit more and remortgage to a fixed rate.

Off to see a broker by the sounds of it.

matt1986_1

If you have a NR Together mortgage we may want to check you contract in more depth.
If you have a Together product made up on the mortgage an unsecured loan element. you may find that the interest rate rises on the unsecure element by 8%. Unfortunately for me I purchased during peak house prices in April 2007, so now in around £20k+ negative equity and trapped in a mortgage product on SVR. I could potentially move my mortgage part to another lender but when the see a £30k loan with a 12.79% interest rate payable over 25 years they laugh.... So no chance of even protecting my home if interest rates rise!!

suse*

I have just managed to move from nram for the same reasons as I bought in 2007. My house dropped in value nearly 20% as well. So first you need to figure out what your house might be worth.

If you look on rightmove there is an option to have a couple of estate agents value it for free. They will only tell you what you want to hear mind you, so consider knocking 10k off what they tell you straight away as mortgage valuations aren't as kind.

Then you can phone nram and ask for a balance for that day. That isn't the same as a redemption figure, but it will give you a rough idea of how much you have left. Most mortgages now need 85% ltv or more so from your valuations, and what you have left with nram you'll be able to see if you're in negative equity or not. You can get 90% deals in some places if you shop around, the rates aren't as good though so it might be worth seeing how far off you are and is it worth over paying enough to get you down to 85% instead.

To leave nram it is just a £250 admin fee as they want people to leave, but again unless you have a good ltv there might be fees for a new mortgage, so you need to factor that in. You can add them to the mortgage with some banks, but that isn't always a good idea as you'll be paying interest on that too.

You will also need a solicitor to sort out the paperwork side for a remortage and do searches etc. Mine came out to about 400 I think it was as they were an online one. I am not sure if I can post the name here but again you will need to shop around.

I hope that helps you figure things about a bit but I've just been through this, and had been trying to move away from nram for the past 18 months but it is all about the ltv and the valuation you can get.