Northern Rock Mortgage Problems.

sturose

I'm asking on behalf of my mother regarding her mortgage which should be finished as of August 2013, if any further information is required it may take a while to get it so please bear with me.

The mortgage was originally taken out a long time ago and the final payment was due next August, during the loan period she remortgaged and took out a secured loan.

She specifically asked for the payments to be increased so that the mortgage would still only run for the same time as the original loan term.

This was agreed by northern rock and she has been paying the increased payments for the last 8-10 years, (can't remember exactly).

They have just decided to contact her to inform her that they originally miscalculated and the payments have to be increased by £110 per month and run for an additional 7 months after the original final payment date of August 2013!

She is understandably upset about this as she retired last November and she was looking forward to owning her home outright and having the extra cash, she arranged for this mortgage to be finished at this time as is would coincide with roughly the time she would retire within a few months.

I have advised her to at least complain as she would most likely have continued to work for another year or so if they had informed her of this miscalculation earlier and I believe it to be at the very least unprofessional for them to miscalculate the repayments and not realise until just before the end of the loan term.

If it was just a couple of pounds increase and no extra payments then fair enough but this is rather a large mistake in my opinion, the extra £110 per month over the new term they have calculated is an extra £2k+ not taking into account the extra 7 months of the current payments she is making!! In total she will be paying over £5k extra on top of what was originally calculated.

Is there anything she can do about this other than send a strongly worded complaint?

bigadaj

Formal comp,ain't and if not a suitable response take to the regulator, would expect either a full write off or maybe reduced by half.

sturose

Thanks for the reply, exactly what I have suggested to her. I just wanted to know if it was worth pursuing or if they can actually do this and get away with it.

Thrugelmir

What did Northern Rock miscalculate?

sturose

They recalculated the repayments when she remortgaged and took a secure loan out with them about 10 years ago.

She wanted the loan term to remain the same because it would mean her mortgage payments would be finished a few months after she retired. They have now wrote to her just 12 months before the end of the loan and told her they have miscalculated the repayments and she will have to pay an extra £110 per month AND pay the mortgage payments for an extra 7 months AFTER the original final payment date.

mrchiggles

Make sure you know if it's Northern Rock or NRAM she's with and direct the complaints/etc to the right place!