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NRAM customer with what was known as 125% mortgage. HELP PLEASE
Nickistrat
Posts: 1 Newbie
Hi
New to the forum hoping someone can help. I've spent hours searching the Internet and found no info on what happens when you want to move house and still have some of the unsecured loan outstanding on a former northern Rock mortgage. Do banks frown upon this outstanding loan? Can they help consolidate the debt into your new house purchase? Can they offer the additional as a personal loan?
We don't have bad credit, the equity in our house is more than adequate for a 10-15% deposit on a new house purchase and we have more than enough money for fees.
Any advice or information would be greatly appreciated
New to the forum hoping someone can help. I've spent hours searching the Internet and found no info on what happens when you want to move house and still have some of the unsecured loan outstanding on a former northern Rock mortgage. Do banks frown upon this outstanding loan? Can they help consolidate the debt into your new house purchase? Can they offer the additional as a personal loan?
We don't have bad credit, the equity in our house is more than adequate for a 10-15% deposit on a new house purchase and we have more than enough money for fees.
Any advice or information would be greatly appreciated
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Comments
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Have a look on the loans board, and do a search for nram, there may be some help there.Non me fac calcitrare tuum culi0
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No reason why the entire balance cannot be remortgages. If you can afford to make overpayments, however small. It would be beneficial. As you are paying a high rate of interest at the current time.
Is your mortgage interest only currently? Can you afford to switch to a repayment basis if it is.0 -
The unsecured loan is just treated as a personal loan by your new lender. It either impacts on your affordability if you keep it, or not if you pay it off.
What you need to watch is that the interest rate on the unsecured loan rises if you pay off the NRAM mortgage.
If you are asking if the new lender will take over the extra lending in a similar way the answer is 'no'.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I had a similar mortgage to you, when I moved house NRAM wouldn't transfer the mortgage to my new place. I got a new mortgage but my loan was decoupled into a regular unsecured loan. In my case it became 12.79% from the 5.99% it was when it was coupled to my mortgage, and the term stayed at 25yrs. I had many may phone conversations with NRAM over the years and I have never hung up without thinking that they were anything but crooks.0
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The rates were clearly set out in the Northern Rock mortgage offers.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
tallpaullewis wrote: »I had a similar mortgage to you, when I moved house NRAM wouldn't transfer the mortgage to my new place. I got a new mortgage but my loan was decoupled into a regular unsecured loan. In my case it became 12.79% from the 5.99% it was when it was coupled to my mortgage, and the term stayed at 25yrs. I had many may phone conversations with NRAM over the years and I have never hung up without thinking that they were anything but crooks.
Was the new mortgage through NRAM?0
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