NRAM Considering IVA for unsecured element

[davyatsea]

Hi there,

 

I have recently sold a property which was mortgaged on the well known Together product.

 

I financial advisor advised that I delink and retain the surplus as a deposit towards the purchase of a new property

(currently renting at present due to relocation).

 

The apr on the unsecured element has jumped to over 12%.

While this was not unexpected, this is a huge amount,

and with the remaining term of 25 years,

I will be paying in excess of £100k on an original £30k unsecured element.

 

To me, there must be a case of mis-selling here.

 

I know there have been moves to challenge all this, with nram actions groups etc, but it seems to have gound to a halt.

 

Question is

- has anyone successfully challenged the crippling t's &c's of this hike in apr?

Is this something worth pursuing. Its late at night,

so I can elaborate more on my specific circumstances during the wekl.

However, any advice would be greatly appreciated.

Many thanks.

[caro]

I think we need more info? Are you saying that you had an unsecured loan of over £25k? I suspect most lenders would be reluctant to lend to buy a property when the deposit is also a loan. Doesn't make sense to me.

[davyatsea]

Hi Caro, Many thanks.

 

The original unsecured element was for £30K over 30 years and was taken out in Aug 2006.

The current outstanding amount is £27K with 22 years left on the term.

 

The issue here is not whether I can get a mortgage or not.

That is something I will deal with when the time is right.

 

The issue here is whether anyone has challenged the crippling repayment amount that NRAM has set.

 

In my case, the repayment amount per month has risen from £169 to well over £300.

Multiply that over 22 years, and the figure is well over the original amount.

 

While this is not as bad as payday lending, it is a high interest rate compared to other lenders.

I know lenders are reluctant to lend, which now puts me in a difficult position, as I'm sure many other people are.

[davyatsea]

Does anyone else have any advice on this. Has anyone successfully challenged what I consider to be unfair terms and conditions?

[honeybee13]

Hello there.

 

I expect the forum regulars will see your thread over the course of the day, but not everyone here will have dealt with what you're talking about or know the answers. Please bear with us.

 

HB

[davyatsea]

Hi there. Just wondered if anyone has got any ideas - it's been a couple of days since I've checked my thread and it seems to have gone a bit quiet. Many thanks.

[caro]

I think this will be of interest to you. http://www.consumeractiongroup.co.uk/forum/showthread.php?437974-Northern-Rock-must-refund-Together-mortgage-customers

[emanevs]

I think this will be of interest to you. http://www.consumeractiongroup.co.uk/forum/showthread.php?437974-Northern-Rock-must-refund-Together-mortgage-customers

 

At a guess, they probably owe you money.

[caro]

That's what I'm hoping.

[davyatsea]

Many thanks. I had heard about this in the press lately but was unsure of the detail. If any refund is due, which looks likely, then that will enable me to effectively reduce the repayment term and have this debt repaid much sooner. I will be watching the other thread with great interest.

[steampowered]

Can you use part of the new mortgage to pay the unsecured element? That would seem to the best way of doing it if at all possible.

[Stevietoon_69]

Hi,

 

I am also researching this, having just sold my house which was part of the 'Together Mortgage'. Left with 25k of my 30k unsecured.. Happy that I may be getting 6k back but my question is....

 

Given that the unsecured APR is going up to approx. 12.6% .... However, with this in mind perhaps it's worth pursuing this under the CCA given that a recent NRAM letter specifically states something like "In line with the CCA we are increasing your unsecured interest rate from 4.7% to 12.6%"... Any thoughts, given that the 25k+ doesn't fall under the CCA after all?

 

 

Steve

[emanevs]

I would never borrow from these sharks again...they are just as bad as WFS.

 

Check your terms and conditions of the unsecured....which I would have guessed they dont have it if your loan was around 2006.

 

Or even better do a Subject Access Request.

 

Bet they dont say anything about increasing apr from 4.7 to 12.6%...may even state that the interest rate will be no more than xxx bank of england base rate:-)

[davyatsea]

Many thanks. A couple of good ideas here, especially following the recent court ruling. Next thing for me is the SAR once I've gone through the T's and C's.

 

David

[davyatsea]

Hi there,

like many others,

I am saddled with an unsecured element of the NRAM Together Mortgage since selling my property in 2014.

 

The debt currently stands at around £27K with a monthly repayment of over £300 per month.

Recently we have fallen into arrears and the only way we can reduce the arrears is to repay £400 for at least the next year.

 

The overall balance of the loan is not reducing at all,

and due to the high interest rate,

there appears to be little scope for effectively reducing the balance.

We are now in rented accommodation with no hope of getting a mortgage to buy our own place again.

 

Looking around, it appears that no-one has successfully challenged NRAM about the extortionate interest rate

(bearing in mind that the debt is currently state owned).

 

This can only be quite a predicament for myself and many others.

I am now at the point of considering an IVA to try and clear NRAM in five years

rather than the 20 or so years that is remaining on this loan.

 

Has anyone else managed to get an IVA with NRAM included, and if so, under what conditions?

 

Is there another way out of this as I have had an IVA previously (which did not include NRAM) and I am naturally nervous of this - especially as it effectively prevents me from buying any house, or evening moving house for the foreseeable future.

 

Any advice would be greatly appreciated.

 

Many thanks.

[dx100uk]

https://www.judiciary.gov.uk/wp-content/uploads/2014/12/nram-plc-v-mcadam-hartley.pdf

[dx100uk]

sorry meant to post the thread link

 

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?394905-Northern-ROck-NRAM-Together-Mortgages-with-unsecured-loans-in-excess-of-%A325-000

[davyatsea]

Many thanks DX. I've had a look at the other thread and it answers the question about the paperwork issue.

I still have the question about whether to go for an IVA or not, so I can start to chip away at the actual balance.

[dx100uk]

keep to one thread please

 

threads merged. and tidied.

 

 

dx

[davyatsea]

Morning all.

 

Many thanks dx for sorting out the threads for me.

 

To be fair, it does keep it all together.

 

Does anyone have any thoughts on the NRAM situation?

 

Whether to go for an IVA or whether there is another way of dealing successfully with NRAM?

[davyatsea]

Any ideas anyone.....? Many thanks.

[davyatsea]

Hi everyone.

 

Its been a while since I've been on, but I've being doing some research in the meanwhile.

 

To cut a long story short,

NRAM have now placed my account on an 'Interest Forgiveness Concession Arrangement'.

 

They have agreed to reduce the interest (haven't said by how much).

 

They have also accepted my payment offer of £194 per month for the next year, and have confirmed that my overall balance will not increase over the next year.

 

This has been a long road to get to this point, and is not over yet, but this is a MASSIVE step forward.

Many thanks for all your help and advice so far.

[dx100uk]

time to sar

get all the statements

 

 

and get reclaiming all the penalty fees they've levied on you

[davyatsea]

SAR has been sent to NRAM last week - also to original IVA provider. I am keen to find out whether NRAM should have been included in original IVA, and also to investigate/reclaim fees etc.