NRAM possible settlement of Unsecured element of Together Fixed loan

sarah270570

I don't think I am duplicating here - sincere apologies if I am - I have had a good look through. NRAM could do with their own forum section!

I phoned NRAM today to make a settlement offer to them for the unsecured element of my Together mortgage. Passed from pillar to post for about 30 minutes to be told that neither the Financial hardship team nor the customer contact people had ever heard of the notion of anyone offering them a settlement figure. Redemption yes -settlement no.

Long story short. took out together mortgage in 2004 - £23k unsecured (for the deposit partly) and £158 secured.

My partner died unexpectedly young so of course I am liable for the whole lot which I can't pay. He earned more than me. At the moment, I am paying them a token amount on unsecured amount. But I am taking redundancy in March and would like to get rid of this debt if possible. I want a new start in another country but won't be able to do this if I have to pay the whole of my unsecured debt from the house sale. (house sale will cover that but wouldn't allow me to do anything else). So I figured that as I am paying them practically nothing now on my unsecured loan then surely they'd be open to a settlement offer. but like I said, I was told today they'd never even heard of the notion of them.

sorry if this is complicated sounding - I know it is to me! any advice would be very much appreciated

Thrugelmir

You've sufficient assets to settle the debt. Why should NRAM ( i.e. the UK taxpayer) settle for less?

sarah270570

no moral reason I suppose. (mind you morality and NRAM make strange bedfellows anyway don't they) Just that I will be left with nothing to show for scraping by to keep my head above water since my partner died.

Thrugelmir

sarah270570 wrote: »

no moral reason I suppose. (mind you morality and NRAM make strange bedfellows anyway don't they) Just that I will be left with nothing to show for scraping by to keep my head above water since my partner died.

I'm expressing a business view not my own. NRAM has a job to do and that's wind down the old lending books at no expense to UK taxpayers. As it's UK taxpayers that have lent the money to keep it afloat. There's no morality involved.

amnblog

The next person that refuses to put life insurance in place when they take their mortgage should read this thread.

silvercar

Morals aside.

If you sold the house, cleared the secured debt, emigrated and then approached NRAM from abroad with an offer to settle, you may get a better hearing.

Just bear in mind that the interest rate on the unsecured debt jumps up when you no longer have the main mortgage.

If you are currently only paying a total amount, you may find the total debt is already beyond your means. Have you asked for a recent balance?

Thrugelmir

silvercar wrote: »

Morals aside.

If you sold the house, cleared the secured debt, emigrated and then approached NRAM from abroad with an offer to settle, you may get a better hearing.

NRAM can block the sale.

sarah270570

Most/many employment/pensions terms carry adequate life insurance with them. steve had been employed for all of his life but was just unlucky to be made redundant 2 months before he was diagnosed with a terminal illness.

kingstreet

Death In Service cover is supposed to provide assistance to the family to help get over a lost income and maintain living standards.

It isn't really for debt repayment.

Most life cover now also pays out on the diagnosis of a terminal illness, so it's possible to get the comfort of the debt being repaid before you die. Reducing financial stress at a tough time.

Not particularly aimed at the OP, but for future readers of this thread.

crystal_pixie_2

I think the point was missed here.

I am in the same boat with NRAM - I have about 5 years left to pay on my unsecured part of my together loan and I ask for a settlement figure based on paying the loan off today.

The account is up to date.

I was told that the settlement figure is the same as the balance and there is no redemption. I was under the impression that these loans were covered under the CCA and that there was a calculation for loans that are settled early.

NRAM seem to disagree with this.

kingstreet

That's for personal-type loans where the interest is added to the principal at the outset.

It's what used to be known as the Rule Of 74.

As these Together unsecured elements were more like mortgages, where the interest is only charged on the amount owed at the time it is payable, there is no interest to be rebated as it's paid purely on an "as you go" basis.

Therefore, the balance and the settlement/redemption figure would be exactly the same.

IMHO the OP was asking the lender to accept a "full & final settlement" of a reduced sum due to financial hardship.