Unsecured loan with Northern Rock

KDJ78

Hi All

Would appreciate some advice...
We took out a unsecured load with our mortgage in 2004 with Northern Rock and I keep being called by sales people telling me that I can claim PPI on this loan. When I said I was not sure we even had PPI on the loan I was informed due to the high interest on this loan I can claim compensation regardless of PPI or not.

Could anyone please shed some light as I really dont know if they are right and do not trust these people to deal with it as they are phoning me daily and obviously trying to make money out of me!

TrickyDicky101

It's a scam so you are right to ignore.

The interest rate would have been considerably below comparable personal (unsecured) loan rates as it was the same as your mortgage (ie secured) rate.

kingstreet

Frankly, they are talking garbage.

The rate on a Together unsecured element is 4.79%, the same as the rate for the secured element, following the end of any special offer, where it was the same then too.

Besides which, you can't claim something was mis-sold because the rate is higher than for other forms of borrowing. That's known as buyer remorse.

Together was a very effective way of lowering the cost of credit, where one loan at a lower rate replaced other higher-rate borrowing. The fact property prices dropped afterwards isn't something a lender can factor-in when lending.

You may have purchased accident, sickness and unemployment cover when you took out your mortgage. If you were in a job you could lose through no fault of your own and your employer would only pay you for a short time in the event of absence due to accident or illness, it was probably appropriate for you to have this cover.

KDJ78

Thanks for your responses, very helpful.:)