NRAM ERC refund coming soon...

Quigibo

On my Mortgage "Offer of Loan" there are statements that down ring true anymore such as the "Lending Policy" and the Loyalty Discount when moving to a new product & the "What happens if you move house" is the offer of loan part of the Terms and Conditions of the mortgage? or is their no legality to the offer?

I could fight my case based on the fact that the offer of loan no longer true?

damory

Meeper wrote: »

Then your gripe is with the adviser, not Northern Rock.

My 'gripe' is that NRAM is not NR and charging an ERC may have been appropriate for a contract with NR but it's not appropriate for NRAM to rely on this unfair and onerous ERC now, as they cannot offer what NR promised me in their offer document (e.g. Quigibo's post and others).

NRAM have already offered to refund my ERC and returning to the point of this thread, this week that policy is rumoured to have morphed into a straight waiving of the ERC ... leta21 please post some more info!

Meeper

I don't agree - sorry.

NR don't promise in their offer documents that they will guarantee to make a new deal available to you at the end of the fixed rate period, nor do they guarantee to help you if you want to move house. Everything is subject to the terms and conditions at the time that you want to do it. If you can show some written guarantees that NR would absolutely categorically lend you extra funds / make other deals available, etc, then I'll go back to being Mr Obama again.

My question would be "You mention that NRAM shouldn't be able to rely on this unfair and onerous ERC, yet you agreed to it in the first place when you took out the deal with NRock originally. Had the mortgage still been with NRock and they had simply said "No, we don't want to offer you a new rate, you will just go onto the SVR as stated in your offer", would you still consider the conditions onerous?"

What your adviser told you in the first place is irrelevant. If he made a statement like "Don't worry about going onto the SVR, they will offer you a new rate at the end of this one", then he should also have mentioned that this is not guaranteed and you should only rely on the terms and conditions in the offer which states that it would be x% for y period after which it goes to z%. Any variance on this arrangement is wholly voluntary on the part of the lender and in no way guaranteed.

damory

M thanks for your thoughtful reply.

When I took out the mortgage with Northern Rock I accepted the ERC in the knowledge that I could reasonably expect to port this mortgage to another NR product as my needs changed. NRAM cannot offer this now so they have agreed to refund my ERC.

I think, as leta21 posted when she started this thread that NRAM's policy is untenable and should/will be aligned with the current B&B policy of waiving the ERC, hence my complaint to the FOS.

Meeper

Well, should that be the case, I would state that this is extremely generous from NRAM as they are certainly under no obligation (neither were NRock) to provide you with alternative rates at the end of the period. This may well be a gesture to restore some goodwill to the NRock name or to get funds back into the NRAM balance sheet earlier than anticipated.

Ju&Mel

Any more news Leta?

picardygirl

Ju&Mel wrote: »

Any more news Leta?

We wish eh Ju&Mel

Leta21 logged on here yesterday morning, but obviously couldnt face posting a reply, somehow, i'm not feeling "no news is good news" ......;)

.... but please Leta21 if you know any different, please correct me, i've even sent you a PM and you've not replied to that either !

picardygirl

damory wrote: »

M

Yes I have received a letter last week stating that NRAM will refund the ERC if I borrow £3000 + the redemption figure.

The point of this thread is that NRAM's policy was rumoured to change yet again this week so the ERC is waived. Any news on that?

Leta where are you?

Just made my weekly call to NRAM to find out latest ..... pointless call, but i did say i have been told letters have been sent out, to specific customers, confirming ERC will will refunded if borrowing is over £3k etc etc, to which they denied .......

Thrugelmir

picardygirl wrote: »

Just made my weekly call to NRAM to find out latest ..... pointless call, but i did say i have been told letters have been sent out, to specific customers, confirming ERC will will refunded if borrowing is over £3k etc etc, to which they denied .......

Apparently new NR (Good Bank) is looking into buying some of NRAM's mortgage book.

So this may help in the future in terms of remortgaging etc. Also may explain why nothing is happening on ERC front at the moment.

I put no timescale on this event either.

damory

picardygirl: I have in my hand a letter dated 18/1/2011 stating, "We will refund your ERC, providing your new loan meets the required criteria". The criteria listed is basically borrow £3,000+redemption figure from someone else then contact NRAM for the refund once complete. The letter is from customer relations, NRAM.

I have made a complaint to FOS as I feel this is not concrete enough. I feel as they accept in principle that they should refund the ERC to me they should wave it as B&B do. I will post the FOS decision as soon as I get it.

In the meantime, Leta21 ... please post an update!

Thrugelmir: Very interesting indeed...