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Hi all
Sorry for the over long post, but here's the story. I have a repayment mortgage with NRAM that costs me £900 per month. In April I contracted NRAM to inform them my wife and I would be unemployed from May 2012 and wanted to know what help they could offer. They agreed to a 3 month payment holiday which covered June, July and August.
In July I contacted them again to say our financial situation had not improved and would like to apply for a period of 'interest only'. We filled in all the necessary paperwork including Income & Expenditure forms and have been waiting for a response. Despite my constant phone calls, they have waited until today (a few days before my first mortgage payment after the payment holiday is due) to tell me they have declined our application for 'interest only' on the basis they don't think we can afford it. The amount for 'interest only' would have been £475 per month.
I asked what they were going to do as I don't have £900 per month at this moment in time. They said I would have to talk to the collections team who were the ones who referred me to the 'interest only' option in the first place.
We can comfortably afford to pay £500 at present and this is what I intend to pay this month and subsequent months until our financial position improves. However, as opposed to paying £500 a month on an 'interest only' deal where I wouldn't be accruing arrears every month, I will now be in arrears to the tune of £400 every month.
If it's relevant at all, I have NEVER missed a mortgage payment in the 26 years I have held a mortgage and I have NEVER been late with a payment either.
I guess I have 2 questions.
1. What else can I do at this moment in time other than pay the £500 per month I can afford
2. What action are the mortgage company likely to take as I continually fall into arrears every month to the tune of £400.
Also, has anyone else been in this position and what was the outcome.
Thanks in advance for any replies.
Sorry for the over long post, but here's the story. I have a repayment mortgage with NRAM that costs me £900 per month. In April I contracted NRAM to inform them my wife and I would be unemployed from May 2012 and wanted to know what help they could offer. They agreed to a 3 month payment holiday which covered June, July and August.
In July I contacted them again to say our financial situation had not improved and would like to apply for a period of 'interest only'. We filled in all the necessary paperwork including Income & Expenditure forms and have been waiting for a response. Despite my constant phone calls, they have waited until today (a few days before my first mortgage payment after the payment holiday is due) to tell me they have declined our application for 'interest only' on the basis they don't think we can afford it. The amount for 'interest only' would have been £475 per month.
I asked what they were going to do as I don't have £900 per month at this moment in time. They said I would have to talk to the collections team who were the ones who referred me to the 'interest only' option in the first place.
We can comfortably afford to pay £500 at present and this is what I intend to pay this month and subsequent months until our financial position improves. However, as opposed to paying £500 a month on an 'interest only' deal where I wouldn't be accruing arrears every month, I will now be in arrears to the tune of £400 every month.
If it's relevant at all, I have NEVER missed a mortgage payment in the 26 years I have held a mortgage and I have NEVER been late with a payment either.
I guess I have 2 questions.
1. What else can I do at this moment in time other than pay the £500 per month I can afford
2. What action are the mortgage company likely to take as I continually fall into arrears every month to the tune of £400.
Also, has anyone else been in this position and what was the outcome.
Thanks in advance for any replies.
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