northern rock unsecured loan

winsford1

I can afford to pay my northern rock mortgage but not the unsecured loan we took out to pay are mortgage where do i stand, as i now pay this on my own the house is in negative equity. In the last week i have had two letters and four phonecalls threatning me with the debt off 77 pound a month which they say because i am 2 months behind, i have offered to pay thirty pound they dont seem interested in that amount where do i stand. I am at my wits end with worry any help would be appreciated.

Regards John

VIGILANT22

Call them and talk to them...I know it is hard but this will act in your favour...also make the payment of £30.00, this is better than nothing it also shows you're making an effort and not burying yr head in the sand....also find you local debt advice agency/citizen's advice bureau and enlist their support...on here you will find a debt forum..post on there I believe they're very supportive...you may even find someone in the same situation.

NR have many, many clients in yr situation....Have a read here, The Banking Code identifies a lender’s duties, when dealing with customers in financial difficulties. The over-riding principle (set out in section 13.10 of the Code) is that the lender will consider cases sympathetically and positively.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/39/financial-difficulty-debits-39.htm

shabz2

I am in the same position myself......Northern Rock are recieving £360 a month from the DWP but my mortgage is £300 and the unsecured laon £77...they are refusing to take the excess £60 of my loan.....i to have offered them £30 a month and again they are refusing and threatening me with legal action already.....
When ever i phone NR they say ' oh yes thats not a prblem we can allocate the surplus to the loan ' and the next day i recieve a phone call saying it is a mistake and they cant ???

If i make any head way with them i will let you know !

pm2326

shabz2 wrote: »

I am in the same position myself......Northern Rock are recieving £360 a month from the DWP but my mortgage is £300 and the unsecured laon £77...they are refusing to take the excess £60 of my loan.....i to have offered them £30 a month and again they are refusing and threatening me with legal action already.....
When ever i phone NR they say ' oh yes thats not a prblem we can allocate the surplus to the loan ' and the next day i recieve a phone call saying it is a mistake and they cant ???

If i make any head way with them i will let you know !

Hi, they cant take the additional £60 and pay it to the unsecured part of the mortgage as the DWP will only pay the secured..they dont take into account the unsecured part. I'm surprised they are paying more than the contractual payment due on the secured element.

Personally I would check the payment is correct from the DWP as you might get a nasty shock if they have overpaid and ask you to repay the money. If its correct well done.. keep getting benefit and you've managed to get the DWP to pay your mortgage off earlier than planned!

shabz2

Thanks for the heads up......

didnt think things could get any worse but obviously they can....the DWP had just made a back payment to NR from August.....so it looks like if they have overpaid then i now owe them money as well from august......

chivers1977

The DWP pay at a standard rate which may well (and is allowed to be) over the actual rate charged by Northern Rock. Therefore it is probable that you have not been overpaid by the DWP.

shabz2

Thanks Chivers......i did look in to this and the standard rate from the DWP is higher then my Northern Rock rate.....thank god.....managed to not have complete panic meltdown !