BTL repossession by NRAM
NRAM is repossessing our BTL property, because we have exceeded the term! My wife and I purchased a BTL property in June 2007 unfortunately despite telling our advisor this was a long term plan to pay off our residential mortgage and for retirement he advised an interest only mortgage for 7 years.
When I asked what we were supposed to do after 7 years he said just get another mortgage! I was declared bankrupt in 2011 and although we have maintained the mortgage payments NRAM are now repossessing the property.
Due to my bankruptcy (discharged in July 2013) we have been unable to arrange another mortgage. NRAM state that since they were bailed out they are unable to offer additional lending and therefore cannot extend the term for us although NRAM’s website states they can offer additional lending in exceptional circumstances nobody seems to be able to say what they class as exceptional circumstances!
The mortgage is for approximately 50% of the value of the property so the bank will have no problem recouping their money, but we will end up losing the property which was bought with the intention of repaying our home which is on an interest only mortgage also with NRAM.
We now face the prospect in 12 years time when our mortgage ends of losing our home and also I face the prospect of having no money for retirement. The advisors who arranged the mortgage deny arranging it even though I provided them with a letter from NRAM stating it was they who arranged the mortgage.
I have contacted the FSA and the Financial Ombudsman all to no avail.
Dene
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Member Since August 2016 - Comments: 4
3:26 AM, 13th August 2016, About 10 years ago
She claimed for disrepair, there had been a leak into the property shortly after she moved in and then a further leak last year, she claimed that the leak had never been repaired and had been leaking in for four years! She also claimed the boiler was unsafe and had been condemned by British Gas, was leaking carbon monoxide and could have killed her and was then replaced, however I still had a copy of the engineers visit she referred to that stated boiler was safe and was only 2 years old! She again reported that she was suffering nausea and headaches due to the boiler in June this year just a couple of weeks before we were due in court even though there is a homecare agreement with British Gas under which she has authority to call them out if she has a problem. She also claimed the deposit wasn’t protected although she was fully aware it was however I accept that I failed to provide her with the correct paperwork from the DPS stating this.
You say NRAM make it clear in their correspondence that they are unable to extend terms, I’m not sure what correspondence that refers to, my early statements had information on the reverse stating the cost of extending the term of the mortgage and I was never informed after the bailout that that had changed! I think the most I was ever in arrears was 3 months and when they phoned regarding my residential mortgage the person who called was unaware I had a BTL mortgage with them and it was purely out of concern which is the case with a lot of banks regarding the amount of interest only mortgages that have been taken out in recent years where people have no means to repay at the end of the term
Regards
Dene
Member Since August 2015 - Comments: 287
8:37 AM, 15th August 2016, About 10 years ago
I suppose it could be said that you were lucky to keep the property when you went bankrupt and that at least it now has some equity in it such that you aren’t going to be chased for a deficit by NRAM when they sell it.
Silver linings and all that.
Member Since December 2015 - Comments: 27
4:51 PM, 30th August 2016, About 10 years ago
Hi Dale,
Exactly how are NRAM going about reposession? Via court? They do not have a power of attorney on their T&C’s to appoint any LPA receiver. It would need to be a stand alone POA anyway.
Can you remember when you signed your mortgage deed, did your solicitor ask you to leave the date blank? If that is the case the deed (and your mortgage) are void which leads you down a completely different path.
Let me know and Ill point you in the right direction [email protected]
Member Since December 2016 - Comments: 1
11:00 AM, 8th December 2016, About 9 years ago
Reply to the comment left by “Rhys Jones” at “30/08/2016 – 16:51“:
Useless timewasting nonsense masquerading as help. DO NOT listen to any of these ‘freemen of the land’ trolls, they will have you out of your house quicker than any bank will. Anyone using arguments like this in court will be laughed out as so many have been before.
The best thing you can do is speak to the lender, that is what they want you to do. There is no use in asking uninformed internet commentators for ‘advice’ because they do not understand your situation, only you and your mortgage company can know that.
In terms of the complaint issue, there is no fault on NRAM in this instance – BTL is an investment and like any other you make your choice and you live by it – some people make money, some people don’t.