NRAM Negative Equity

Posted on 21 August 2012 by Emma

Hello, we took out a Northern Rock repayment mortgage in 2007 (just before everything went awry).

We are now wanting to port our mortgage to move house, and are unsure if this will be possible. We bought our flat for 120,000, and are possibly facing between 5 and 10k of negative equity.

We have about 15k in savings, and the property we are looking to buy is 100,000. So we are in fact not wanting to increase out mortgage at all.

Are NRAM going to make us stump up the cash for the negative equity, and a 10 percent deposit in one lump sum, or can any of these be adjusted with the mortgage (as we are not wanting to increase in any way).


This is going to depend on whether or not you have an unsecured loan included in your mortgage.  You will have to pay the secured mortgage back in full regardless of any negative equity, but if you have some on an unsecured loan you may be able to carry this forward.  The interest rate will be increased so that it is more in line with the unsecured loan rates available elsewhere and they will not allow you to borrow more.

It is nigh on impossible to get information from NRAM if you are not a customer and you really need to ring their Customer Helpline 0845 609 9610.  You will then be able to deal with facts rather than conjecture.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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