Nram-consent to let granted/declined?

harrybobin

Hello, I would be most grateful if anyone can clarify the situation I am in at the moment. I have a repayment mortgage with NRAM (£116, 000) my house is valued at £150, 000. I currently live in Australia as my job re-located there and have been granted consent to let for the last 2 years with no issues. I have recently applied for consent to let again but was informed that it is possible that this is the last time they will grant it (even though my contract in Australia is for another 5 years). I have tried to sell the house twice in the last 2 years (for under market value) but was not successful. I have never missed a mortgage payment and have even made overpayments to bring the loan amount down. If I do not get granted consent to let in the future but continue to rent it out anyway can NRAM repossess it even though my mortgage has always and will always be paid? I have looked into getting other mortgage deals-buy to let but don't qualify as I do not earn in GBP and am not eligible for an expat mortgage as you have to be a millionaire to qualify for one of those. We are in a difficult position because NRAM are unable to offer us another mortgage deal and we are unable to get one elsewhere. We do not want to lose out home. Thanks in advance for any valuable advice and information. Claire

Thrugelmir

You potentially do run the risk of having the property repossessed if NRAM will not grant a further period of CTL. Your only option is to continue reducing the property price until it sells. Though with a tenant in situ this makes matters more complex. Are you likely to return to the UK in the long term?

Expat_Mac

There are (or were) buy-to-let mortgages that are available to expats without being a millionaire. We got one a year ago, there were several options then, although things might have changed and it took us about 6 months to arrange (we did it ourselves, but there were brokers who would have taken on the case for a large fee).

From the post it looks like you will struggle with the valuation though, as you would almost certainly need at least 75% LTV.

If you are planning on returning to the UK there would probably be more options.

happylucky

Hi, sorry to read your predicament. I would very strongly advise you to speak with a specialist mortgage broker about this.

Expat btls are far thinner on the ground than they used to be but still available. You certainly don't need to be a millionaire nor earn in GPB to get one. You may even find a provider who is unencumbered by some of the overly stringent procedural checks many UK lenders are tied to.

Being in Australia is a potential issue due to some specific regulations, which is why some expats are required to sign their remortgage paperwork physically offshore! Of course, any expat mortgage brings risks associated with forex movement but you're in that already.

So, imho it's too early to give up yet. Got to remember there are zillions of. UK expats in oz and loads of them keep their homes in UK...

Talk to a specialist. Good luck.

harrybobin

Thank you so much for the replies. It is such a difficult position to be in because I am committed to the mortgage and want to keep my home but don't want to continue making overpayments if in the long run NRAM will repossess it.

Yorkie1

I'm not sure about the term 'repossession'. At worst, NRAM can call in the loan - which would mean that you'd need to sell up or remortgage, but I don't think they actually repossess, unless you don't repay the loan and they get a court order.

Of course, if the worst does happen, any overpayments would mean that your equity was greater.

Thrugelmir

Yorkie1 wrote: »

I'm not sure about the term 'repossession'.

NRAM could force the sale of the property using legal channels. Breach of contract can take many forms not just defaulting on the repayments.

Yorkie1

Thrugelmir wrote: »

NRAM could force the sale of the property using legal channels. Breach of contract can take many forms not just defaulting on the repayments.

I realise that breach of contract can occur through more than failed repayments.

My point was that NRAM's actions would be limited legally in the first instance to seeking immediate repayment of the loan. NRAM wouldn't have power to force sale unless the repayment wasn't forthcoming.

amnblog

Yorkie1 wrote: »

I realise that breach of contract can occur through more than failed repayments.

My point was that NRAM's actions would be limited legally in the first instance to seeking immediate repayment of the loan. NRAM wouldn't have power to force sale unless the repayment wasn't forthcoming.

So what could NRAM do, or want to do that would be detrimental to our poster if payments are maintained?