Beware - Hidden Northern Rock Property Insurance Charges !!!!

gavsmillie

I have just been checking through my mortgage insurance docs and came across a letter from Northern Rock. It was sent to me when I was taking out a mortgage with them and explains that I am to be charged £25 pounds for admin costs due to me not wanting to take out their expensive Insurance Product ! :mad:

Can you imagine the bare faced cheek !!! That's £12.50 for each letter of NO ! :mad:

Now upon reading even further into the blurp I now find that not only have they added it to my mortgage repayments but if I do not pay for the hidden £25 pound they then charge me Interest !!!!! :mad:

How low can these people go !!! How do they sleep !!!!! :mad: :mad: :mad:

Anyhow main point is be wary when you refuse insurance from the mortgage company you are dealing with !!!! Spend time going through your letters. They do send you lots and it takes time but I will not be burned again !!

Rgds,

MortgageMamma

This charge is normally detailed in a lenders key facts about this mortgage document which is normally given to you, either by your independent mortgage adviser or your NR sale rep prior to you taking out a mortgage with them.

All fee's regarding a mortgage have to be disclosed under current regulation, so the chances are you were informed but perhaps overlooked it.

d.ylan

I know how annoyed you feel, I was somewhat vexed when I had to pay this on my first mortgage with them too two years ago - no doubt to make up for the commission they don't get when their customers have common sense... the funniest thing, they have the cheek to charge me another £25 for STILL not taking out their preferred insurance now I'm just porting my existing mortgage to another property without a charge.. over £600 to move it.. and then the £25 insurance premium that I already paid on this deal.

BTW, it isn't a charge for the time it takes them to verify you've got correct insurance in place in case someone was going to chime in with that, because they've never asked about my insurance product, only interested in levying the charge as soon as I say I don't want theirs.

They do love their appalling charges do Northern Rock.

dunstonh

A common charge with a number of lenders and some insurance companies or brokers will cover the charge.

d.ylan

dunstonh wrote:

A common charge with a number of lenders and some insurance companies or brokers will cover the charge.

Oooh, interesting idea. Does anyone know of any insurers that will cover this charge? I think I might ask my insurance company (esure) when I move the cover to the new property, but I'm thinking they won't be one to budge.

dwight-van-man

I've always thought it would be a great idea to make it a mandatory condition of every mortgage offer that the client actually read them prior to funds release

d.ylan

dwight-van-man wrote:

I've always thought it would be a great idea to make it a mandatory condition of every mortgage offer that the client actually read them prior to funds release

hehe, if world super powers don't have to read the paperwork I guess it's too hopefuly that everyone else will.

The Common-Sense-Own-Insurance-Fee appears in the official 'offer of loan' paperwork for NR. This is where I've spotted it both times I've had to pay it. This most recent occasion (porting my product with no change) the fee didn't actually appear in the copy of the application I received and had to read through and sign, only once I'd paid the valuation fee, had the valuation done, and received my official Offer of Loan did it appear on the breakdown. In there, but annoying none the less. Cant they just be happy with getting £2 back for every £1 borrowed. Needless to say, I'll by voicing my dissapproval with my feet as soon as my minimum term (leftover from the first mortgage when I was significantly 'greener') is up.

gavsmillie

Iraqi Dinar Millionaire

Fair point fella !!!! Was too busy thinking about how the garden was going to look, the tiles on my kitchen and all the other mad things you think of first !!!

Anyhow will read throughly next time instead of big eyes on first mortgage !!:rotfl:

Xbigman

dwight-van-man wrote:

I've always thought it would be a great idea to make it a mandatory condition of every mortgage offer that the client actually read them prior to funds release

You are required to sign to say you have read it and agree, what more do you want? :rolleyes:
Regards



X

dwight-van-man

Xbigman wrote:

You are required to sign to say you have read it and agree, what more do you want? :rolleyes:
Regards



X

No you aren't.

dwight-van-man

gavsmillie wrote:

Iraqi Dinar Millionaire

Fair point fella !!!! Was too busy thinking about how the garden was going to look, the tiles on my kitchen and all the other mad things you think of first !!!

Anyhow will read throughly next time instead of big eyes on first mortgage !!:rotfl:

and to be fair, whoever was advising you should have mentioned it at the outset. Confession time; I gave up being a broker two years ago. Just before leaving, I had two complaints made against me for not advising the client verbally of the insuranse elsewhere fee and the TT fee, although both were noted in the documentation. In both cases, my employer reimbursed the clients....