NRAM Repayment mortgage

mikeb1967

I have a repayment mortgage started about ten years ago with Northern Rock some time ago following the banking crisis the mortgage was transfered to NRAM .

NRAM will not take on any new business or allow changes to exisiting mortgages, under the the new lending rules i will not be able to get a new mortgage else where so now i am facing the prospect of having to pay ever increasing monthly payments as the intrest rates begin to rise which they surely must do eventually i guess i could even end up having to sell.

I cant move my mortgage and i cant fix the rate, is there anyone else in this situation?
This seems really unfair that i am in this position through no fault of my own

amnblog

How much have you paid off in the past 10 years Mike?


Do you not now have enough equity to move to an alternate lender?

mikeb1967

Land registry values the property at £290'000 but we are in a "housing price bubble" so i think its fair to say it has a value of £300'000

I have around £125'000 in equity, my problem is i no longer have the same income that i had when i took the mortgage out and my credit rating is shot to pieces, i am pretty sure i will not find another lender, it just seems unfair that i can not fix my rate with NRAM.

Feels like i am being hung out to dry by the goverment

amnblog

NRAM want these mortgages cleared not kept. They therefore will not offer attractive options.

TrickyDicky101

If you have potentially £175k of mortgage debt what is your current income that is servicing this?

Is there any realistic prospect of you increasing your income?

Have you consulted a broker to discuss your options?

mikeb1967

I understand that they are just managing the mortgages but dont understsnd why the rates can not be fixed, to be honest i will probably cope with any modest rise in rates by cutting back else where but i can see people really struggling and probably some being forced to sell.

I feel a little bitter about the whole situation to be honest, in the absense of any help from NRAM i have written to my MP

I dont think i am asking to much i do not want special treatment just a level playing field.

I guess we will see how much this goverment really cares about the "hard working aspirational people who do the right thing"

mikeb1967

TrickyDicky101 wrote: »

If you have potentially £175k of mortgage debt what is your current income that is servicing this?

Is there any realistic prospect of you increasing your income?

Have you consulted a broker to discuss your options?

I have around 30k coming in, a lot less than when i took the mortgage out but i have no problem making the payments and as i said i can absorb a modest rate rise.

Vey unlikely that my income will increase now other than cost of living wage rises, i have not spoken to a broker as i really don't believe i can get approval from another lender.

TrickyDicky101

Is your remaining term 15 years or longer? I probably don't need to tell you this but you have a large debt to repay with not a great deal of income and presumably not a whole lot of time in which to do it.

As harsh as it sounds, perhaps you would be better off if you downsized to something more affordable?

Brock_and_Roll

It's not really the government's fault that that the OP's credit rating is "shot to pieces".

With the amount of equity that the OP has in the property, there would be no problem is switching mortgage providers if the credit rating was ok and my only suggestion is that OP takes all steps over the next few years to improve the rating.

mikeb1967

TrickyDicky101 wrote: »

Is your remaining term 15 years or longer? I probably don't need to tell you this but you have a large debt to repay with not a great deal of income and presumably not a whole lot of time in which to do it.

As harsh as it sounds, perhaps you would be better off if you downsized to something more affordable?

I realise that the change in my circumstances mean that i probably wont be able to keep the property for ever and in some ways i look forward to downsizing but the time is not right, i would really like to stay here for another 5 - 10 years or at least as long as i am able to comfortably make the payments.

mikeb1967

Brock_and_Roll wrote: »

It's not really the government's fault that that the OP's credit rating is "shot to pieces".

With the amount of equity that the OP has in the property, there would be no problem is switching mortgage providers if the credit rating was ok and my only suggestion is that OP takes all steps over the next few years to improve the rating.

I dont blame the goverment for my credit rating, but i don't feel i am being treated fairly as i took out a standard repayment mortgage with a high street lender and through no fault of my own and despite having almost 50% equity and never missing a payment my mortgage has been transferred to an asset management company.

Surely they should not be trying to make excess profits but just "manage" the debts until they are settled, as i said before all i want is to be able to plan ahead, fix my payments and pay a fair going rate the same as everyone else.