Posted on 5 October 2012 by Karen
I am paying £2829 on an interest only mortgage of £709,000 with NRAM The mortgage was sold to me by a financial adviser before the recession and was originally with Northern Rock then transferred to NRAM. Prior to that Barclays had sold me a smaller mortgage of £350K with Woolwich which the new adviser tranferred to Northern Rock adding further monies. I think this is a relatively high mortgage rate and is difficult to afford. There are about 9 years left to run on the mortgage which will be paid off then most likely by the sale of the house My husband;s and mine's circumstances are difficult in that my husband is now seriously unwell as am I. We cannot pay off the mortgage at present. I have asked them to lower the mortgage rate in the psat but they have not done so. Do you have any suggestions? I am concerned about NRAM as they do not seem terribly helpful. In some ways I do not think I should have had either mortgage but my main question is about how to reapproach asking for a drop in interest rate
I am not going to be able to help you directly with NRAM, but I hope that I can point the way forward for you.
It sounds like you have an interest only mortgage which restricts what NRAM can do to help you. They will not reduce the interest rate on your mortgage, but you may be able to get an agreement to make reduced payments or even no payments if you can show that your situation is temporary.
Have you checked to see whether or not you were sold any insurance when you took out either mortgage? If you check your bank statements for standing orders or direct debits you may find that you have an insurance policy that will pay out a monthly income if you or your husband are unable to work through sickness.
I think you should speak to one of the free debt counselling services, such as those run by Citizens Advice or the Consumer Credit Counselling Service. They will be able to look at your overall circumstances and help you draw up a monthly budget which prioritises those payments which if not made could lose you your home, whilst negotiating lower payments on any non essential payments. They will also be able to help you deal with NRAM.
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