help with NRAM mortgage

Elvisfenemer

Hi all , Basically this is my first post on here as im in a world of confusion !! im looking for advice on my current mortgage with NRAM( northern Rock) so some back story , me and my ex partner had a mortgage with NR back in 2007 i believe it is what they call a together mortgage ( where you have a mortgage an a unsecured loan ) this was because we were rushing for a house due to a child being born . so fast forward on 9 years on , i was made bankrupt in 2012 and discharged within 6 months , my ex partner has since moved on and lives with somebody else , i still live in the house and pay this mortgage but not the unsecured part , my ex pays this part . so my confusion is im paying for a mortgage at a really high rate as NR cannot change the rate due to the takeover etc , i cant change mortgage as i was bankrupt , i also cant remove my partners name due to the joint deal , both of us cant really move on , we seem tied down with no route out ? can anyone offer nay help or point in the right direction ? ideally id like to be able to reduce to a lower rate , and change the mortgage to me , but the whole bankruptcy thing means its all mixed up ...i need some clarity ...any help would be much much appreciated !!

silvercar

i still live in the house and pay this mortgage but not the unsecured part , my ex pays this part .

Correct action. Your responsibility for this debt was included in your bankruptcy.

so my confusion is im paying for a mortgage at a really high rate as NR cannot change the rate due to the takeover etc

NRAM want rid of their mortgages. They aren't going to reduce rates, they hope their customers go elsewhere. Indeed some customers have found that their mortgage has been transferred to another lender.

i also cant remove my partners name due to the joint deal , both of us cant really move on , we seem tied down with no route out ? can anyone offer nay help or point in the right direction ?

Unless NRAM agree to remove your partners name (that would mean demonstrating you have sufficient income to cover the mortgage alone) then you are stuck with the joint mortgage. I don't know what NRAMs view on your credit history/ bankruptcy would be in removing your ex from the mortgage. Certainly worth asking them.

Does the Official Receiver still have a charge on the property? Is there any equity?

One option is to sell up. In theory, you could sell if there is enough to clear the mortgage and leave the unsecured loan continue. I imagine your ex may not be impressed with that, but it is an option.
This is as much a problem for your ex as for you. Being on the mortgage with you could limit her ability to get a mortgage elsewhere, whereas you are happy to stay put.

As time passes your bankruptcy becomes less of an issue and you should be able to remortgage in time.

Elvisfenemer

Hi , Thanks for this so just to go over those points
1) my bankruptcy has removed the unsecured loan from me ? im confused as my credit file still shows me being in arrears on this and drags down my score every month , surely this goes against the mortgage part then ? and no the receiver does not still have control over the property
2) i understand MRAM position on the rates etc but its just a vicious circle in terms of trying to move the mortgage etc
3) selling up inst an option as i have 2 children now and renting is too hard for somebody with no credit history now ( although it is 5 years this December )

Thrugelmir

Is the capital owed on both the mortgage and unsecured loan being repaid. Or just the interest?

Would there be any equity left in the property were sold and the entire debt owed repaid?

Elvisfenemer

Thrugelmir wrote: »

Is the capital owed on both the mortgage and unsecured loan being repaid. Or just the interest?
so the mortgage is in credit but is £10700 left on it , the unsecured loan is in areas due to my ex going into an iva to pay it
Would there be any equity left in the property were sold and the entire debt owed repaid?

the house is worth £125000 so no as the unsecured loan still has £22K to be repaid
to be honest

silvercar

1) my bankruptcy has removed the unsecured loan from me ? im confused as my credit file still shows me being in arrears on this and drags down my score every month , surely this goes against the mortgage part then ? and no the receiver does not still have control over the property

Any unsecured loan is included in your bankruptcy. As such you are no longer liable for it. In fact it may be illegal to make payments to it as that would be showing preference to one creditor over another.

If the property is worth £125k and the outstanding mortgage is £107,000 (I assume you missed a '0' as a typo) then you have £18k equity in the property. The fact that you had an unsecured loan of £22k is not relevant, especially as it went into your bankruptcy so is no longer your debt.

silvercar

This thread on the bankruptcy board may be worth a read.

https://forums.moneysavingexpert.com/discussion/5505636

rawrips

NRAM may let you remove your ex if you meet their requirements.

They're not obliged to reduce your interest rate. Please bear in mind they are a business and they're priority is to make money; if you were in their shoes why would you reduce someone's interest rate which will mean they'll make less profit from your loan.

Await your bankruptcy clearing off your credit report after the 6 years and try getting some IFA or broker advise for a remortgage.

You are tied down at the moment, you'll have to like it or lump it unfortunately.

As for the negative reporting to CRA's I'm at bit unsure on that as I don't personally deal with it, but from my understanding your bankruptcy should be on your credit report, if the debt was included in the bankruptcy, from my understanding then they shouldn't be reporting you on it.

MortgageMamma

Have you taken some professional advice on this? There are still factors to be considered which could help you out of this mess. Your income, your new (assumption) partners income, benefits you get for the kids. You need to have someone look over it with a fine tooth comb really to give you a professional opinion - whether you can remortgage away to another lender, whether you should sell or if there is some other solution.


You also could do with checking that your credit file is mirroring exactly what happened during your bankruptcy.

Forget about how this is impacting your ex, don't have any guilt complex about him/her paying the 22k loan - you need to focus purely on you and your family unit and what can be done to improve your circumstances.


MM