Nram

angie2804

I wonder if anyone could help me? I had a northern rock/nram mortgage from 2006 to 2018, where I was paying £700 for a £90,000 mortgage. I sold up and now I'm paying £500 for a £122,000 mortgage. I feel that I have been drastically over charged by nram. Is there anything I can do?

dunstonh

 I feel that I have been drastically over charged by nram.

How have you worked that out?

Is there anything I can do?

Explain to us why you think you have been overcharged.   Then we will tell you why you are wrong.

angie2804

dunstonh said:

 I feel that I have been drastically over charged by nram.

How have you worked that out?

Is there anything I can do?

Explain to us why you think you have been overcharged.   Then we will tell you why you are wrong.

So, what you're saying in a round about patronising way is that there's nothing I can do?

Thrugelmir

angie2804 said:

I wonder if anyone could help me? I had a northern rock/nram mortgage from 2006 to 2018, where I was paying £700 for a £90,000 mortgage. I sold up and now I'm paying £500 for a £122,000 mortgage. I feel that I have been drastically over charged by nram. Is there anything I can do?

Interest rates have fallen over that time frame. 
You always had the option to move to another lender.  If more competitive market rates were available to you. 
NRAM as a vehicle unfortunately doesn't operate in the same way as an active lender. It's sole purpose is to wrap up the old Northern Rock lending book. Which places an additional burden on it's operational cost base. 

dunstonh

So, what you're saying in a round about patronising way is that there's nothing I can do?

You haven't said what they have done wrong.

I suspect, as Thrugelir above has posted, that you are seeing the impact of falling interest rates.  The base rate is currently 0.10%.   Back in April  2008 it was 5%. In the 70s through to early 90s, it was double digits.  

NRAM is not an active lender and does not provide competitive deals.  It is effectively in run down and the want people to move away whenever they can.  NRAM basically took on the perceived quality lending and the rates largely reflect that.

Bravo_Zulu

Why didn't you leave NRAM earlier? You would have agreed to the interest rate initially and then you got a better deal when you bought somewhere new. I'm struggling to see what your issue is?

[Deleted User]

I’m not sure “ you could have always changed lenders” is helpful. Thats the whole problem with the fallout from Northern Rock, it was essentially a sub prime lender offering high street rates, and many ( including me) could not immediately move mortgages due to circumstances. I bought out my ex and nowhere could I have borrowed the amount I needed without Northern Rock.  Luckily I got out pretty quickly by paying down and increasing my salary, but some were not so lucky and were trapped in NRAM SVR high rates for some considerable time, rather unfairly in my view. I recall on here reading terrible stories of being trapped in negative equity with high interest rates. 

I dont know the answer OP but at least you are free of them now. I know the relief that was for me when I moved mine to Nationwide 

Thrugelmir

Densol said:

I’m not sure “ you could have always changed lenders” is helpful. Thats the whole problem with the fallout from Northern Rock, it was essentially a sub prime lender offering high street rates, and many ( including me) could not immediately move mortgages due to circumstances. 

Northern Rock was nationalised in February 2008 over 12 years ago. Comments made now are in the context of the time that has since elapsed. While not a huge drop. Even old Northern Rock borrowers are on a lower rate of interest than back then. 

dunstonh

Luckily I got out pretty quickly by paying down and increasing my salary, but some were not so lucky and were trapped in NRAM SVR high rates for some considerable time, rather unfairly in my view. 

As you say, NR was effectively a sub prime lender offering retail rates.   It key failure in its business model that led to its demise.   Sub-prime borrowers should not expect prime rates.   Even though they may have started out getting them.  Plus, the rates are still lower than point of purchase.   So, not unfair. 

I recall on here reading terrible stories of being trapped in negative equity with high interest rates. 

Nothing compared to the 70s, 80s and in particular the mid 90s. 

All part of the risks of buying a house with a mortgage.

[Deleted User]

dunstonh said:

Luckily I got out pretty quickly by paying down and increasing my salary, but some were not so lucky and were trapped in NRAM SVR high rates for some considerable time, rather unfairly in my view. 

As you say, NR was effectively a sub prime lender offering retail rates.   It key failure in its business model that led to its demise.   Sub-prime borrowers should not expect prime rates.   Even though they may have started out getting them.  Plus, the rates are still lower than point of purchase.   So, not unfair. 

I recall on here reading terrible stories of being trapped in negative equity with high interest rates. 

Nothing compared to the 70s, 80s and in particular the mid 90s. 

All part of the risks of buying a house with a mortgage.

Yeah I bought my first house in 1983 when I was 18 and the interest rates were 18% odd !
but then again inflation was high so wages raced up so the mortgage payments seemed to be less and less each year
its all relative really