Negative equity payment plan

Castro80

Hi All,

I've just sold my house and am in negative equity. My mortgage was with Northern Rock and they have agreed that I can pay them £300 a month until the negative equity has been cleared.

However, they will not provide me with a payment plan, an estimate of how long it is going to take to pay back or statements.

I have done the sums myself and will keep a track of it very closely.

But I wondered if this is correct/legal??

Any advice much appreciated.

Thanks,

Kate

Trying_to_be_good

I'm just a layman, but it sounds dodgy. Or that you could stop paying them and they'd have no come back.

Do you know the interest rate? Do you have a credit agreement?!

Peelerfart

"Northern Rock" , "Sounds dodgy" surely not in the same thread ! :rolleyes:

castle96

they let you sell a house and lumber themselves with a shortfall and no security !! Amazing. Was this one of the 125%, ie 30% being unsecured ?
Please advise

Castro80

I've had to sign a permissionary note to say I agree to pay it... I assume the credit agreement continues on from my mortgage. I asked them if I could get an estimate and statements and they said no and that i would have to just ring up and get a balance every six months if I wanted to keep track of it.

It seems like they have protected themselves by getting me to sign something but I really don't trust them and feel I need to see quarterly statements of payments made and the effect that this has had on the balance.

Castro80

Yes it was the 125% mortgage - I never missed a payment or anything but I was struggling with it. I am relieved to be rid of it!!

It just seems like they are making it as hard as possible for me to keep track of the outstanding balance and my progress with it - it's about 10k.

beecher

Sounds like you've cleared the mortgage and are now paying the unsecured loan? They should surely have told you what the rate is - what was it originally on?

Castro80

No, the unsecured loan is different and they have said they will be letting me know about that in due course.

This new part is about 4.6% but it is "subject to reviews".

Are they entitled to refuse me statements etc.

castle96

"letting me know in due course" - !! blimey , you are 'trusting'.

I arranged these 125%s in a prvious life and the rate WAS the same as the secured bit. That was what made them so 'attractive'
check original offer/Key Features docs ?

Wutang_2

castle96 wrote: »

"letting me know in due course" - !! blimey , you are 'trusting'.

I arranged these 125%s in a prvious life and the rate WAS the same as the secured bit. That was what made them so 'attractive'
check original offer/Key Features docs ?

Yes but now the unsecured rate will go up to about 10%

And regarding the secured element - all sounds way too vague (no rate, no term, no agreement etc!!).

kittylitter

Just my twopenneth but I'd be sending them a letter of complaint by recorded delivery advising that if you don't get a full written explanation within 14 days that you'd be contacting the financial ombudsman for their assistance.

It certainly can't hurt to make your unhappiness clear and might just make them do something, if not you'll have the proof to pass to the ombudsman if you get in touch with them. Hope you get it sorted