NRAM Mortgage - Any way out?

nic3510

Hi, I'm just looking for a bit of advice or info or anyone who may be able help, so here goes

My now husband bought a house by himself with NRAM Together in 2007. On interest only as he was on his own.

Obviously what happened over the coming years happened and the house ended up in negative equity.

Fast forward to us being married and a little one in tow we wanted to move. We tried this on a couple of occasions using part ex for a new one, assisted move, and the traditional route. All failed.

We were advised to rent the house out and try again having a reasonable deposit. This time Natwest gave us the mortgage in principle knowing all the facts saying if we paid off our car loan we can have it. So we did that with some of the deposit we had. Then they turned round and said no anyway. So not only disappointment but putting a dent n our deposit. Cheers Natwest!

Fast forward again and the house is now rented out and we relocated but renting ourselves which is costing more than most mortgage payments would be!

My questions are what do you think our chances are of trying again?
The house still wont be worth the full amount he borrowed but if we could sell for the amount of the mortgage part could we just keep the loan part or port it?

I just feel we are stuck n this situation and cant get out of it. We had to move as the area declined terribly and had to think of our sons future.

Hope it makes sense and someone could offer some advice

Thank you in advance

betmunch

The house is now rented out and some lenders will exclude it from their calculations.

This should come down to your income, credit score, and deposit.

The old house is not a reason for you not to be able to get a new mortgage.

Speak to a reputable local broker who can do a full fact find and advise accordingly

nic3510

Thanks for that. Natwest told us the reason for not giving the mortgage for a new home was because of the other house we had and knew this when they told us to get rid of the car loan so feel really let down by them.

We just want to sell that one eventually and forget it ever existed!

Gonna look for a local broker now.

Any other replies regarding NRAM mortgages welcome. Sounds like they got a lot of people by the short n curlies...

betmunch

nic3510 wrote: »

Thanks for that. Natwest told us the reason for not giving the mortgage for a new home was because of the other house we had and knew this when they told us to get rid of the car loan so feel really let down by them.

Remember NatWest can only speak for NatWest, none of the other lenders.

Banks have a habit of stating their own criteria as if it applies to everybody.

ethank

Despicable of Natwest, but you should have waited for the Mortgage Offer before repaying - this document will include any conditions given by the lender.

Thrugelmir

If the mortgage is still on an interest only basis then there's the cause of your problems. As you need to be repaying the capital owed to reduce the debt. Then you'll escape negative equity. The great danger is that the property will become a millstone around your necks and cause you even more problems in the future.

You can't blame NRAM either.

nic3510

ethank wrote: »

Despicable of Natwest, but you should have waited for the Mortgage Offer before repaying - this document will include any conditions given by the lender.

Thats the thing we were told get rid of the loan and we will give you the mortgage offer. This was during the application process through a mortgage broker so we thought fair enough then they said no you still not having it. Oh well know not to go through them again!

Property_problem_solver

Hi nic3510,
There are many people in a similar situation to you that feel trapped by negative equity and can't move on. I'm currently helping somebody like you to extract themselves from this situation so if you'd like me to see whether I can help you please contact me on this forum.

pcgtron

nic3510 wrote: »

Thanks for that. Natwest told us the reason for not giving the mortgage for a new home was because of the other house we had and knew this when they told us to get rid of the car loan so feel really let down by them.

We just want to sell that one eventually and forget it ever existed!

Gonna look for a local broker now.

Any other replies regarding NRAM mortgages welcome. Sounds like they got a lot of people by the short n curlies...

I had a mortgage with Natwest on a flat that myself and my wife lived in. We got pregnant and decided that we needed somewhere bigger for the little one. We were in a fortunate position that we did not need to sell the flat to raise a deposit to buy another house so decided to rent that one out and purchase a house.

Natwest and HSBC both told us that they would take the existing mortgage into account and on that basis we could not afford a new mortgage. Halifax on the other hand don't take the existing mortgage into account, so we went with them and kept the flat which is now rented out to tenants.

The downside, we did not get the most competitive interest rate on the market, in fact no where near going with Halifax (Our consent to let with Natwest is much lower than our residential) but we got to keep both properties