Northern Rock issues

fubar4164

I and my partner had a 2yr fixed deal with NR. We didn't borrow more than the property is worth or anything like that, we just took out a 2yr fixed mortgage on 4.09%. We now find out that the fixed rate period ends on 1st december, only 22 months after taking it out.

On querying this, we are told that we were first offered the product in December 2006, so this is when the fixed rate period started, it apparently is immaterial that we never received the letter of offer until mid January 2007, and therefore couldn't move or receive the cash until after that date. It is also apparently immaterial that NR lost the application at least once between December 2006 and Jan 2007 which caused the 6 week delay and meant we had to postpone purchasing the property.

And to further add to my irritation, because they "offered" us the product in mid December 2006, they are taking this to mean the offer ends at the start of December 2008, not even mid December! I know we are talking a matter of weeks on this but it makes me mad that we paid a significant arrangement fee to buy the low rate for 2 years and now NR are clawing back weeks of that period, so we only get the benefit of 22 months!

Is there anything we can do about this? It seems to me that if we try to take it further then we are bound to stay put with NR & their SVR while we make the complaint to try to get the discount extended, because if we move the mortgage at the start of December and our complaint is upheld, then we will have to pay the ERC! What nonsense.

Luckily we can afford to move lender, which would have been compulsory anyway since NR are not offering new mortgages to existing customers, regardless of personal scenarios, but I would not choose to remortgage with them anyway after this experience.

Ian_Griffiths_Halifax

Check your Mortgage Offer Letter and you'll probably find that it wasn't a 2 year Fixed Rate, but it will have had an End Date which will have been 30 Nov 2008.

I'm sorry but on this occasion I think it is your own fault for not querying the end date/term when you applied and got your offer letter.

feisty1

It is also apparently immaterial that NR lost the application at least once between December 2006 and Jan 2007 which caused the 6 week delay and meant we had to postpone purchasing the property.

You have a good case here for complaint, did u use an adviser, if so go back to them and tell them to take it up with their Business Development Manager, that way hopefully you will get a quicker resolve

beecher

Why didn't you read your offer letter? I think you are best to move on, find another lender (I take it your LTV is under 90%?) and make sure you read everything before you sign this time round.

Also, check if you were given help with costs at the time as you may find you have to pay them back if there is an overhang - I'd dig out the original paperwork if I were you.

Ian_Griffiths_Halifax

Towards the latter end, Northern Rock came out with 18 month, 2 and 3 year deals with HWC penalties over only 18 months. I think it's mainly ones taken 2 1/2 to 3 years ago that had 3 1/2 year tie ins with HWC.