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NRAM and Interest Only

myotai · 2013-12-02 13:44:14

Hi, I took out an Interest Only Mortgage back in 2006 with Northern Rock. I had no say in whether I went with NRAM, just seemed to happen. Now my repayments with NRAM are still £750 per month with 18 years left and still Interest Only. My credit rating is decimated after being left to pay everything after my partner and I…

Comments

Thrugelmir Posts: 89,546 Forumite

2 December 2013 at 7:09PM

DesperateSusan wrote: »

NRAM are only "looking after" existing accounts, they are not issuing new loans and so, they do not need to be competitive in the rates they offer.

NRAM has a high % of borrowers on interest only mortgages who have no repayment vehicle. So their interest rates are priced to reflect this fact. Those that are able do remortgage elsewhere as time passes.

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