Repossesion Threat - 45% equity tho

Cruchie7

My property value is now £205,000 the original mortgage was for £174,000 and when thing were going well I was able to pay off more each month and now got it down to £98000 (roughly).

However since I've split from the wife, finances have struggled due to CMS payments of over
(£1700) per month.

I have been making payments for as much as I can afford to NRAM, but not the full amount.
I have now accumulated over 3 months of arrears and they are starting repossession proceeds on the house.

They are refusing to let me change the mortgage to interest only. I have roughly 45% equity on the house but NRAM refuse to let me use any of it, or offset the arrears.

I have explained that I only want this until the house goes up for sale in the next few months.

Is there any way I can release the equity on the house, or force NRAM to help. Standard reply from them seems to be - Company Policy, unless you can pay then we will have no option but to take the house from you.

Any help appreciated folks

Thrugelmir

You are in default of your mortgage contract. The lender can therefore take whatever action it wishes. The % equity in the property is of no interest to the lender. You can either afford the repayments or not. Administering and monitoring of delinquent accounts is an expensive business which costs the lender money as full costs are never recovered.

Perhaps better to start marketing the property now and retain control of the situation. Rather than the other way round. Then NRAM might be more receptive.

ACG

I cant really see NRAM doing anything.
You may be able to find a second charge lender prepared to lend you what you need if you can evidence those payments will stop shortly and you will then be in a better position but rates wont be pretty.

struggler

In your experience is there any evidence of interest only mortgages being allowed to continue after the end of the term ? Where no repayment vehicle is in place. Read that Santander were considering this, also TMB, who I am with. Due to a recent court case in Northern Ireland all Lloyds group have halted seeking any repossessions.
Would welcome any thoughts you have, as I will be facing this situation soon.