Northern Rock End of Mortgaged Deal (Merged Threads)

tebberen1

Hi

Would be interested to know if anyone else had this experience.

NRAM recently informed me by telephone that I 'owe them' £70 in arrears. I have no idea where they got this from, as their most recent written correspondence did not show any arrears at all.

Also, considering the fact we are one of the lucky few who had their loan paperwork screwed up by them, and possibly owe us money, I was sceptical.

I asked them to provide written evidence to me of these arrears and what they relate to, and if they can do so, I will be more than happy to pay this.

The woman told me they will investigate it and willl call back to confirm as they cannot do so in writing as they cant issue 'non standard letters.

I told them this sounded entirely unprofessional to me, and suspicious, and leaves the consumer with very little to go on, and I was not happy.

Has anyone else had this experience? We are tired of how underhand NRAM appear to be in some many ways, you never know where you are with them, and the goalposts always seem to change.

Would like to hear from you!

Thrugelmir

Was it NRAM that called?

I would expect correspondence as well as you say.

hasikhushi

I liked this deal as for the selling and renting the same deal would be preferable

Mot82

I’m looking into finally moving my mortgage away from NRAM and the new Help To Buy measures announced just now in the budget have got me pretty interested in things again as I was a bit stuck prior to this. May still be stuck but it’s worth looking at it again anyway!
Currently the outstanding debt I have with NRAM is around 125k with 15k of this being the unsecured portion. I think (slightly optimistically perhaps) I may have a chance of selling the house if I wanted to for around 120k which would obviously give me 10k equity ignoring the unsecured portion. Obviously this would probably involve me leaving the unsecured portion with NRAM for now and taking out a new mortgage with the 10k deposit and looking at the shared equity scheme on a new buy. By my understanding this would give me the opportunity to take up to 40k from that scheme and that could in theory then be a 50k deposit on a 200k new build?

I’m aware the interest rate on the unsecured portion would go up as I’m currently on the SVR but I don’t have any idea what that would be. I’ve read 8% mentioned on here but is that to 8% or an additional 8%? Any rough ideas what my payments would then go up to on this?

I know it’s all very speculative but I could end up with lower mortgage payments on a higher valued house, obviously with slightly more debt and the shared equity portion to repay at some point but it does look like an interesting option at this stage.

niccatw

Hi Mot82, the NRAM website says, "If you don't redeem the unsecured element of your loan, then it will continue as an unsecured loan with NRAM and in line with the terms and conditions of your loan, there will be an increase in the payable rate. Please refer to your mortgage offer for confirmation of the loading rate."

I checked my mortgage offer and it states it will increase to 8% above the SVR at that time. Check your mortgage offer and see what it says. And remember, if the SVR went up, so would your overall interest rate (when I originally took my mortgage out the SVR was 7.59, at the moment it's 4.79).

markeymark

I'm an NRAM customer with a together mortgage, this is made up of original mortgage and 6 smaller loans secured, and one unsecured loan. I'm on the SVR and basically haven't looked around to changing this due to fact that in past few years I've incurred some bad credit, we have now outgrown our property and have the chance of moving to a bigger property and renting it.Could we sell the property and pay the secured part off only and be allowed to keep the unsecured loan?


Also would NRAM look at credit files if we where to ask about getting a better deal? We have never missed one mortgage payment

niccatw

NRAM isn't open to new business so you wouldn't be offered a better deal through them.

But yes, you could sell and keep the unsecured loan with NRAM. The interest you will pay on that loan will be the SVR (currently 4.79) + whatever interest rate is stated in your original mortgage offer (mine is 8%, so I would have to pay 12.79% on an unsecured loan for as long as the SVR remained at 4.79. If the SVR rose to 7% (for example) then I would have to pay 15% interest on my unsecured loan).

pss53

Just out of interest, has anyone left NRAM and left their loan with them ? I'm just interested on if people have been accepted for another mortgage having a small loan outstanding?

Jem8472

OK this could be a stupid question I am not sure. Just would like to see if anyone can throw any light on this.

We had a NR 35 year mortgage in 2007 part mortgage and part unsecure loan. £112,000 It was fixed for 3 years. Since the fixed term ended I have been over paying. So paying £650 a month. I think we are on 4.79% since the fixed term finished.

We are starting to get into a position where we have some equity in the flat and are thinking of moving at some point in the future. We owe about 99K (made up of secure and unsecured loan) and our flat is worth about £110K


If we go to get another mortgage will the new mortgage pay off the unsecured bit as well as the secured?


Thanks.

kingstreet

If you have enough equity and want to pay off the unsecured loan you can do so.

If you keep the unsecured loan, the rate goes up to SVR + 8%, or 12.79%, so you need to consider that carefully.