NRAM voluntary repossession???

[skint98]

Hi I'm new here and just looking for some advice/opinions. We bought our house in 2005 with an NRAM together mortgage then a few years later took out another secured loan of 30k over 10 years to consolidate other debt and make home improvements (in hindsight this was a VERY BIG mistake!!). 4 years ago my husband was made redundant and we changed to interest only payments. He quickly found work but has been unable to earn anywhere near his previous salary and due to now having 3 children I work part time so have remained paying interest only. Unfortunately husband lost job in Aug this year and we are now 3 months in arrears. We have done an income and expenditure with NRAM but were unable to come to a reduced payment plan as we are in negative income but have made a few token payments anyway. The house is in approx. 25k negative equity so can't sell. We feel in the long term we will never earn enough to return to repayment and have the added pressure of the other secured loan ending in 3 years time and we will still owe 27k. NRAM have said we cannot increase the repayment term and they will expect the loan to be repaid in full in 3 years time.

CAB have advised to save for a deposit to rent privately and wait for NRAM to repossess then consider bankruptcy for shortfall. We were accepting of this however my husband thankfully has a new job and is due to start next week. We will then be in a position to afford the interest only payment again however will still owe the 27k in 3 years time. Another debt charity has suggested we should continue with the mortgage payments and worry about the 27k in 3 years time but I think we will just spend the next 3 years worrying about being back in this position. We have thought about voluntary repossession to get this over and done with but can NRAM refuse as technically we will be in a position to afford the payments?

Thanks for reading. Hope it makes sense. Any advice would be greatly appreciated.

[skint98]

Hi can anyone offer any advice or know if voluntary repossession can be refused by NRAM>

[Myfamily]

Hi Skint,

 

Just have a couple of questions, I am not an expert but people might need to know this anyway. Who is the secured loan with and are you up to date with that?

[skint98]

Hi the secured loan is also with NRAM. It was taken out about a year after we moved into the house. No we're not up to date with that either as it's all part of the one monthly payment.

[Capt Slog]

Hello Skint98.

I was advised on my thread to try :

nationaldebtline website. Cant post the link because I don't have enough posts but it is a .co.uk site and has a section for mortgage arrears.

Somewhere on their info it does mention Secured Loans but I don't know enough about this to offer any advice of my own. If you do phone them you might have to wait a while to speak to someone and be prepared to be asked about all your debts ,not just this one, if you have any. Good luck