NR 125% Together Mortgage - Major problems

stingrae

We are in the 4th year of our 5 year fixed rate together mortgage. We have been in to our local branch enquiring about what will happen next year and have been told that the unsecured loan cannot be moved from NR and that we would be paying 5% above whatever their base rate is next year. Which when worked out using current figures can be 12.8%. Meaning we would be paying back over £60000 on a £14000 loan!
We then decided to have our mortgage checked due to a lot of info we had not been told from our advisor inc. the above regarding the loan. A month ago we requested copies of all our signed agreements for both the mort and the loan. As yet we have had nothing back. The branch manager will not return any calls and has passed the buck to their head office. When I called head office I was told they had 'some' paperwork but 'not all'. A friend who works in the industry has advised of previous issues where NR were shredding credit agreements and whereby people took them to court and the loans were found to be unenforceable.
So, we dont know how to proceed. How long do we wait for the paperwork? And what next if they have nothing??
During the heated meeting with NR where we were told NR mort were 'watertight' the branch manager told us 'off the record' that if we had been mis-sold it had nothing to do with them and it was our advisor through Your Move that had mis-sold us. As yet we await paperwork from Your Move also, although we doubt they will have anything.
Any advice greatly recieved

Wutang_2

stingrae wrote: »

We are in the 4th year of our 5 year fixed rate together mortgage. We have been in to our local branch enquiring about what will happen next year and have been told that the unsecured loan cannot be moved from NR and that we would be paying 5% above whatever their base rate is next year. Which when worked out using current figures can be 12.8%. Meaning we would be paying back over £60000 on a £14000 loan!
We then decided to have our mortgage checked due to a lot of info we had not been told from our advisor inc. the above regarding the loan. A month ago we requested copies of all our signed agreements for both the mort and the loan. As yet we have had nothing back. The branch manager will not return any calls and has passed the buck to their head office. When I called head office I was told they had 'some' paperwork but 'not all'. A friend who works in the industry has advised of previous issues where NR were shredding credit agreements and whereby people took them to court and the loans were found to be unenforceable.
So, we dont know how to proceed. How long do we wait for the paperwork? And what next if they have nothing??
During the heated meeting with NR where we were told NR mort were 'watertight' the branch manager told us 'off the record' that if we had been mis-sold it had nothing to do with them and it was our advisor through Your Move that had mis-sold us. As yet we await paperwork from Your Move also, although we doubt they will have anything.
Any advice greatly recieved

Your pal in the industry would do well to provide some examples of the NR unenforcable loan successes first - rather than get your hopes up.

stingrae

our hopes arent up about getting the loan cleared - we simply dont know what to do next. We are in fact much more concerned with the amount of info we were unaware of at the time of signing like being unable to move the loan part of our mortgage to another lender and how NR could put our rate up so much on the loan.
We feel like we are getting nowhere fast with NR

Gorgeous_George

If you can take a mortgage elsewhere that provides sufficient funds to clear the mortgage AND the unsecured loan, then you are able to move the unsecured element to a new provider. Alternatively, you could take an unsecured loan with your bank and repay the unsecured loan at NR.

Talk of using a loophole to have the debt written off will only get the hackles up of most hard-working taxpayers.

GG

beecher2

Surely you've got your copy of the Key Facts?

In my opinion you're better off using your energy to work out how you'll get your LTV down to 90% so as you can move elsewhere. Go onto the Debt Free Wannabee forums for help in overpaying/saving as much as in humanely possible to get out of this situation - for starters can your rent out a room?

surreybased

Hi,

I can see how you might feel shocked about the situation but the reality is the type of mortgages/loans you took out are no longer available and banks are having to take a different view on risk, as a result charges are higher. What is the balance on your mortgage ? Do you have equity? The best advice has been given, look at how you can get to a reasonable LTV so that you can shop elsewhere for a decent rate.

stingrae

Im only working part time now compared to full time when I got the mortgage. Nr told me id struggle to get another lender to take on my mortgage due to this and that I was basically stuck with their variable rate mort next yr when my fixed rate ends.
As for getting the loan made unenforcable this really is not the issue -i myself am a hardworking taxpayer and have never claimed a penny from the state so am not trying to anger people! i just added that as more info regarding nr. im worried about how much money this will cost me next year and how im going to be stuck with them on a rate i cant afford.
yes, i do have the key facts but for people like me who are not in the business of mortgages most of the paperwork you get during a mort app is double-dutch! the advisor certainly did not mention any of the above when signing. this is why id like to see my agreements and get them checked out.

dunstonh

A friend who works in the industry has advised of previous issues where NR were shredding credit agreements and whereby people took them to court and the loans were found to be unenforceable.

There is virtually no evidence of this apart from what claims companies tell people to try and scam them out of money. There have been some successes but they are rare enough to make the media when they do and the overall success rate has to be in the low single digits. Since the December 2009 court rulings, which helped the lenders, the unenforceable loans thing has more or less dried up and many claims companies are now going into administration taking the upfront money people paid to them with them.

A month ago we requested copies of all our signed agreements for both the mort and the loan.

Whats the point of that? It wont do you any good if they supply them or copies unsigned. The court ruling in December cleared that one up.

During the heated meeting with NR where we were told NR mort were 'watertight' the branch manager told us 'off the record' that if we had been mis-sold it had nothing to do with them and it was our advisor through Your Move that had mis-sold us.

That is correct. NR have no liability for the advice you were given. He didnt have to tell you off the record. It's fact.

We are in fact much more concerned with the amount of info we were unaware of at the time of signing like being unable to move the loan part of our mortgage to another lender and how NR could put our rate up so much on the loan.

Did you not read the mortgage offer letter that you signed?

We feel like we are getting nowhere fast with NR

And quite rightly they are not budging as they have no reason to. To put it bluntly, they probably see you as a scumbag trying to shirk their responsibilities. It doesn't mean you are but that is how they likely perceive you. They will remain firm in their position as they cant help you do anything apart from perhaps reschedule the term of the mortgage if you are on repayment basis. If you are on interest only then there is nothing they can really do.

Entering into a mortgage is not a risk free transaction. You decided you wanted to purchase a house and borrow more than the house was worth. Just because that is now inconvenient to you, does not mean anything wrong happened. You are free to move the NR mortgage providing you repay the mortgage and the loan at the same time. If you cant afford to do that then, to put it bluntly, tough. Lots of people cant afford to do different things. You have to accept it.

yes, i do have the key facts but for people like me who are not in the business of mortgages most of the paperwork you get during a mort app is double-dutch!

the key facts document is about the only decent thing the FSA introduced. Its in clear language and sticks to the key points in a relatively short and easy to read document. If you cannot understand that then you should have sought legal advice (just as everyone used to 15 years or so ago). The choice to sign a contract you didnt understand was yours to make.

have been told that the unsecured loan cannot be moved from NR and that we would be paying 5% above whatever their base rate is next year. Which when worked out using current figures can be 12.8%. Meaning we would be paying back over £60000 on a £14000 loan!

That is what happens with every mortgage when the deal ends. However, it wont be 12.8%. It will be 7.5% currently. Personal loan rates are usually higher than secured loan rates.

If you are in financial difficulties then you should get over to the debt free wannabee section where there are some very nice and helpful people who can help guide you. However, trying to get out of paying the mortgage and loan is a waste of time.

beecher2

stingrae wrote: »

Im only working part time now compared to full time when I got the mortgage. Nr told me id struggle to get another lender to take on my mortgage due to this and that I was basically stuck with their variable rate mort next yr when my fixed rate ends.
As for getting the loan made unenforcable this really is not the issue -i myself am a hardworking taxpayer and have never claimed a penny from the state so am not trying to anger people! i just added that as more info regarding nr. im worried about how much money this will cost me next year and how im going to be stuck with them on a rate i cant afford.
yes, i do have the key facts but for people like me who are not in the business of mortgages most of the paperwork you get during a mort app is double-dutch! the advisor certainly did not mention any of the above when signing. this is why id like to see my agreements and get them checked out.

What NR say is true - if your wage has gone down, then you're probably stuck on their SVR. As for not understanding the key facts, I suppose it is too late now, but in the future you should really make sure you understand what you're signing.

For now focus on getting the debt down rather than beating yourself (or NR!) up about decisions already taken. You need a plan of action to get out of this and living in the past won't do it. You need to make real changes to your finances to deal with this, and the Debt Free Wanabee forums are the place to get help.

ILW

NR are not telling you that they will not allow you to take the loan elsewhere, it is just that nobody else wants it.

stingrae

dunstonh - i am NOT trying to get out of paying anything!!!! i - unlike u - am not in the business so therefore am lost with who to turn to and what process to follow. I am following the advice of Nr and your move by getting things checked. I have never missed a payment on either the mort or the loan nor do i intend to. i was just looking for some help on what could be done.