Trapped by Northern Rock

Posted on 15 November 2011 by Victoria

My husband and I only have a 5% deposit available to us and would be considered home movers.

Our current mortgage is with NRAM (originally Northern Rock before their issues occurred).

At the time my husband obtained the mortgage, he also accepted an unsecured loan which can continue independently of the mortgage, just on a higher APR should we sell this property. This, however is a high loan and still has 18 years to run! The NRAM mortgage is portable but due to their ‘situation’ they will not lend above the amount we currently have outstanding.....which is nowhere near enough for us to move on..

We both have very good credit ratings (as confirmed by two mortgage brokers) and have been overpaying on our mortgage and unsecured loan each month for the last two years.

The only lenders available to us were Cambridge and Skiptons. Both of these have declined us based on the amount of credit we would have, albeit that we were looking to borrow approx £35000 LESS than their calculators suggested we could borrow based on earnings!

We earn too much as a couple to go on the ‘part buy, part rent’ scheme and feel completely trapped. Please can you tell me if there is any talk at all of high street banks opening up their offerings of 95% LTV to home-movers with good credit scores....? (Sadly we don’t bank with Nationwide!)


Besides Skipton and Cambridge there are 2 other lenders who will consider 95% LTV mortgages for new customers.  Both of these are small Building Societies who base their lending on good old fashioned manual underwriting and not on an automated credit score.

The clue to getting a mortgage agreed in your circumstances will be to convince the Lender that you can afford the higher mortgage payments, existing loan commitments and the higher monthly utility and rates bills that come with a larger property.  You say you have been overpaying each month for the last 2 years and if you have at the same time built up a deposit whilst not increasing your credit card, overdraft or other credit facilities this should stand you in good stead.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to advise you on your situation.


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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