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NRAM Considering IVA for unsecured element

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  • #1

    NRAM Considering IVA for unsecured element

    Hi there, like many others, I am saddled with an unsecured element of the NRAM Together mortgagesince 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.
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  • #2
    Re: NRAM Considering IVA for unsecured element

    An IVA may not be appropriate if this is the only debt you have hanging over you.

    @pt2537 is familiar with NRAM shenanigans

    Di
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    • #3
      Re: NRAM Considering IVA for unsecured element

      There are other debts, but they are well under control and due to be cleared within the next year. This was my concern with NRAM. My wife spoke to a debt consultant and was almost pushed into agreeing an IVA today, but I wanted to seek some advice first.
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      • #4
        Re: NRAM Considering IVA for unsecured element

        Originally posted by Diana M View Post
        An IVA may not be appropriate if this is the only debt you have hanging over you.

        @pt2537 is familiar with NRAM shenanigans

        Di
        I don't think your tag worked. I'll repeat [MENTION=551]pt2537[/MENTION]
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        • #5
          Re: NRAM Considering IVA for unsecured element

          Originally posted by EXC View Post
          I don't think your tag worked. I'll repeat @pt2537
          Thank you EXC.

          I have many strengths but clearly IT isn't one of them

          Di
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          • #6
            Re: NRAM Considering IVA for unsecured element

            Ahh NRAM. Yes, we are looking at them at the minute. These cases do depend on the individual facts, so im guessing that your loan was over £25k ( I know it is) and im guessing your loan said it WAS regulated by the Consumer Credit Act too?

            Can i ask, did the mention of the Consumer Credit Act 1974 have any bearing on your entering into the agreement?
            I work for Roach Pittis Solicitors. I give my free time available to helping other on the forum and would be happy to try and assist informally where needed. Any posts I make on LegalBeagles are for information and discussion purposes only and shouldn't be seen as legal advice. Any advice I provide is without liability.

            If you need to contact me please email me on Pt@roachpittis.co.uk .

            I have been involved in leading consumer credit and data protection cases including Harrison v Link Financial Limited (High Court), Grace v Blackhorse (Court of Appeal) and also Kotecha v Phoenix Recoveries (Court of Appeal) along with a number of other reported cases and often blog about all things consumer law orientated.

            You can also follow my blog on consumer credit here.
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            • #7
              Re: NRAM Considering IVA for unsecured element

              As far as I remember, this had no bearing on me entering into the agreement. The original mortgage was taken out in 2006 following advice from an independant financial adviser, Yes, the loan was for £30k which was clearly over the £25k amount. Many thanks.
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              • #8
                Re: NRAM Considering IVA for unsecured element

                That is unfortunate, as NRAM have been found by the Court of Appeal to have misrepresented the agreements to their customers, however if it made no difference then there is no argument for misrep in my view.

                On the interest rate point, in afraid that the Courts are slow to get involved in cases where the consumer is claiming the interest rate is unreasonably high.
                I work for Roach Pittis Solicitors. I give my free time available to helping other on the forum and would be happy to try and assist informally where needed. Any posts I make on LegalBeagles are for information and discussion purposes only and shouldn't be seen as legal advice. Any advice I provide is without liability.

                If you need to contact me please email me on Pt@roachpittis.co.uk .

                I have been involved in leading consumer credit and data protection cases including Harrison v Link Financial Limited (High Court), Grace v Blackhorse (Court of Appeal) and also Kotecha v Phoenix Recoveries (Court of Appeal) along with a number of other reported cases and often blog about all things consumer law orientated.

                You can also follow my blog on consumer credit here.
                • 3 likes

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                • #9
                  Re: NRAM Considering IVA for unsecured element

                  Okay, many thanks. It's just that the high interest rate is causing financial hardship and it is disheartening to see the balance not reducing at all despite paying double per month compared to what I was paying when the loan was linked to the mortgage. In fact, the balance has actually increased over the course of the past year.
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                  • #10
                    Re: NRAM Considering IVA for unsecured element

                    Plenty would be subject to misrepresentation am sure but, is there a counter on a claim complaint being statute barred of over six years since inception or does this make little difference on an ongoing agreement ?
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                    • #11
                      Re: NRAM Considering IVA for unsecured element

                      I hadn't heard of that to be honest. Could be worth looking into again?

                      - - - Updated - - -

                      Also, is there a case for a complaint of a mid-sold product, which has led to financial hardship?
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                      • #12
                        Re: NRAM Considering IVA for unsecured element

                        Morning all, just wondering if anyone has any thoughts regarding the IVA question - whether to go for an IVA OR pursue some other avenue. I reallt am not sure about this.
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                        • #13
                          Re: NRAM Considering IVA for unsecured element

                          Originally posted by davyatsea View Post
                          I am saddled with an unsecured element of the NRAM Together mortgagesince 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
                          What was the interest rate on the unsecured loan when you took it out (it was probably the same as your mortgage interest rate since this was a Together mortgage)?

                          And what did the interest rate change to in 2014 when you sold your property and redeemed the NRAM mortgage? In all the cases I've seen the interest rate increased massively on the unsecured element at that point.

                          How much is the arrears (how many months?) and have you been threatened with any legal action over the current situation?

                          Di
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                          • #14
                            Re: NRAM Considering IVA for unsecured element

                            Originally posted by davyatsea View Post
                            Hi there, like many others, I am saddled with an unsecured element of the NRAM Together mortgagesince selling my property in 2014. The debt currently stands at around £27K
                            May I also ask whether you sold your property out of choice or were you put under pressure by NRAM due to any mortgage arrears which you may have had at the time?

                            You say you are now renting so I thought that may mean the sale wasn't connected to a further purchase.

                            Either way is it safe to assume that you were not in a position, or chose not to, clear the unsecured loan element at the time you sold the property and redeemed the mortgage? Or maybe you felt it was best to continue with the monthly payments rather than part with £27k capital/equity.

                            Di
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                            • #15
                              Re: NRAM Considering IVA for unsecured element

                              Originally posted by davyatsea View Post
                              wondering if anyone has any thoughts regarding the IVA question - whether to go for an IVA OR pursue some other avenue. I reallt am not sure about this.
                              Why not pursue all avenues before making such a big decision (IVA) especially since you're feeling unsure about it.

                              Let's get to the bottom of the actual sum owed first

                              Di
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