NRAM Complaint

edited 30 November -1 at 1:00AM in Debt-Free Wannabe
2 replies 1.7K views
Justin7902Justin7902 Forumite
1 Post
edited 30 November -1 at 1:00AM in Debt-Free Wannabe
Hi looking for some advice.
2002. I took out a mortgage with Northern Rock. It was actually for more than the house value as I needed extra borrowing. Four years later my now ex partner and I separated. We decided I would stay in the house until we were able to sell at a decent price. Unfortunately the banking crash saw that was not going to be the case. As things got tight I was allowed to go onto interest only payments. This went on for a few years until NRAM decided that they would no longer allow it and my payments went from £430 to £850 per month. This was impossible for me to maintain. During a lot of desperate calls I begged them to allow me to remain on interest only until I could sell. I told them how much it had affected my health, that my ex was blaming me and threatening to withhold access to my son because of it; I was desperate to the point of suicidal. Unfortunately they dug their heels in and told me I had had long enough and that my only options were to either sell the house before it was repossessed(never an option) or to join their assisted selling scheme where they would sell it for me, at a drastically reduced price, and I would have to pay off the 20k shortfall. I was at the time on a debt management plan, and still am, and I will be paying this back until I am in the ground. Recently I have read a lot of threads about NRAMs heavy handed approach and wondered if it would be worth me making a formal complaint. There are many people out there who have told me they have been on interest only mortgages indefinitely with NRAM. Also I feel their lending was irresponsible, allowing me to borrow more than the house value. Had they have allowed me to remain on interest only I would not be in the position I am with them; I feel they completely bullied me into the assisted selling scheme.

I would be grateful for any advice.



  • Pixie5740Pixie5740 Forumite
    14.1K Posts
    I'm not sure about the complaint side of things. Surely selling the property yourselves was always an option?

    How was your debt management plan set up? Did you do it yourself, through one of the debt charities, or are you paying a company to administer it? How many years have you been in the debt management plan and how much longer does it have to go?

    Your ex might be !!!!ed off but that doesn't not give her any right to deny access to your child. Furthermore if this was a joint NRAM mortgage you had with your ex then she is/was jointly and severally liable for it including the £20k shortfall.
  • EssexHebrideanEssexHebridean Forumite
    10.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I can't comment on whether a complaint would be worth it, but I wouldn't bother using the irresponsible lending line if you do to be honest - Northern Rock were well known as a lender who would take on risk - and their "Together" mortgages, which I imagine was what you had, were sold on the basis that they would lend over the property value. Our mortgage started out with them - and yes, was a Together product at 110% LTV. Thankfully we were one of the 2% of mortgage customers who got taken on by the "good" bank when the split happened.

    Take legal advice on the child access situation and get it properly sorted out. Your ex cannot use the situation with the house against you in that way.
    MORTGAGE FREE 30/09/2016 :D
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