NRAM woes

TonyJJ

I'm hoping someone can offer some words of advice. A year ago I emigrated to the US and sought and was granted consent to let by NRAM. They have recently written to me asking me to renew the application for consent to let. I arranged to speak to a mortgage adviser at NRAM who informed me that this would be the last year that they will grant me consent to let and that at that point I will either have to:
(a) Move to a Buy To Let scheme - which I don't think I can afford to do given the higher loan to value required for a BTL mortgage.
(b) sell the property - I have no intention of doing that
(c) move back to the UK - don't think I will be able to due to work commitments.

NRAM are unable/unwilling to offer any alternative product due to their own financial situation.

I'm left feeling boxed into a corner with no feasible solution being offered by NRAM. Seems to me they want another customer off their hands as quickly as possible.

Any advice gratefully received.

TonyJJ

PeacefulWaters

Allowing you to let the property is a temporary concession.

They were never obliged to do so in the first place.

You "boxed" them into a corner originally by changing the nature of your home ownership to a commercial arrangement. They are quite reasonably saying go elsewhere if you want to do this long term.

Annisele

I'm afraid I agree with PeacefulWaters.

You originally wanted finance to buy a home to live in. Now you want finance to run a business. From a lender's perspective, the risks of those two activities are very different - so it's not that surprising that a lender would want to be in one of those markets but not the other.

All I can suggest is that you save as much as you can over the next year, with the aim of reducing your mortgage to the point where you can get a BTL product. If that won't be feasible, then I'd think about selling sooner rather than later.

ethank

If you don't comply with their terms - they can put your mortgage % up or even call in the loan. You are in a no win situation.

Thrugelmir

TonyJJ wrote: »

NRAM are unable/unwilling to offer any alternative product due to their own financial situation.

I'm left feeling boxed into a corner with no feasible solution being offered by NRAM. Seems to me they want another customer off their hands as quickly as possible.

Any advice gratefully received.

NRAM administers what remains of the old Northern Rock and Bradford & Bingley mortgage books on behalf of the UK taxpayer. The lack of no products being on offer has no financial reasoning behind it. NRAM simply has no capacity to unwrite new business. The operation is totally geared to running down and off the closed books.

Because NRAM are unable to offer you a solution which suits you. Doesn't make it their problem. If you don't wish to sell the property. Then you will have to remortgage elsewhere that's the crux of the matter.