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Nram mortgage nightmare

4 replies 10.5K views
Hi there I am looking for some advice please. In our haste to get a mortgage we took out a northern rock 100% mortgage in 2006. Seemed like a great idea at the time. The biggest catch with this mortgage is that they made our mortgage up with a loan to pay for the property. Our mortgage is only 87000 but the loan is 22000 leaving us owing 109000. Our house was valued at 110000. Because northern rock went bust we are now NRAM which is an asset management company who no longer offer new mortgages or deals so our APR is ridiculously high at something like 4.79%!! We tried to remortgage but because of a history of poor credit which is starting to improve and the fact we look like we have a 22000 loan which isn't going down we got turned down. We passed affordability but that was it!! Anyhow we're fed up. We've outgrown our house. It needs a shed load of work doing to it and we want to move. We are currently considering just selling up, paying back the mortgage with its stupid loan, renting for a year or 2 and starting fresh with a deposit!! We are financially stable and I think this is achievable within the next 2 years. Has anyone any thoughts or think this not to be a great idea?!! Would be grateful for any thoughts or advice please!


  • pogofishpogofish Forumite
    10.5K posts
    Part of the Furniture 10,000 Posts Name Dropper
    You should maybe get this moved to an appropriate forum as I have this sneaking suspicion that you are not Martin Lewis....?
  • snoot80snoot80 Forumite
    10 posts
    I'm new to this and am finding it very hard to navigate. Where have I posted this?
  • pogofishpogofish Forumite
    10.5K posts
    Part of the Furniture 10,000 Posts Name Dropper
    In the forum dedicated to Martin Lewis's own activities, nothing else.

    The basics of forum navigation are covered in the Forum Help video and MSE Forum Guide linked off the top of every page - They will inform you nicely. :)
  • edited 2 June 2017 at 9:33PM
    1.3K posts
    edited 2 June 2017 at 9:33PM
    Maybe Martin will notice it here., and prosecuting the cause of people like the OP might possibly become one of Martin's chosen activities.

    There are thousands like the OP with no voice.

    There are thousands more young people who have turned grey over the matter who have even been bankrupted by this disgraceful episode of total misselling.

    I have extended family members who had to give up their house because of ridiculous unaffordability created by totally irresponsible 120% Loan To Value lending like this, and due to stupid low start payments which coincided with pregnancy, and Northern Rock let the house be sold for £40,000 less than they paid for it. They were both bankrupted but I believe are still paying something even as discharged bankrupts now.

    They started their lives together trusting the system, both working and with so much promise in a dream little home, and they were encouraged to borrow far more than they should ever have been sold as a loan, purely to satisfy the greed of bank executives who were quite simply crooks.

    The way the Northern Rock name has been deliberately hidden from public view by government, and then the loans quietly sold down the river, and no Northern Rock executives themselves personally stripped of assets and jailed is disgusting.
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