MSE News: Northern Rock pays £270m to 150,000 after gaffe

faz33

I am due a redress. Got my march statement and the loan has been reduced by just under £2200. But my statement and letters don't show any break down of money from redress.

tracy7

Thrifty_Pixie wrote: »

if you go to the '2013 mfw' thread there is a speadsheet that you can download that works out overpayment benefits, term reductions etc

Thank you, I still need to go and find the discs to reload windows back on my pc, too busy working, going to the leisure centre etc etc to get round to it!!! Will definitely have a look at it once I get my pc sorted.

tracy7

IainHL wrote: »

I am on an interest only mortgage, therefore the whole of my monthly repayment represents interest, there is no capital element. If the interest rate is currently 4.78% and it increases by 0.35% it will go up to 5.13%. An increase of 4.78 by 0.35 to 5.13 represents a 7.3% increase from the base of 4.78.

To use some real numbers, let's say your interest only mortgage is £100k. The annual interest on that at 4.78% is £4,780, giving you monthly repayments of £398.33. If the interest rate goes up to 5.13% the annual interest increases to £5,130, and the monthly repayment to £427.50. The increase in monthly repayment is £29.17 (£427.50 - £398.33). This is an increase of 7.3% from your original payment (29.17 / 398.33 x 100).

If you are on a repayment (interest and capital) mortgage, then some component of your monthly repayments respresents capital, and the percentage increase in your monthly repayments will be lower.

Here ends today's arithmetic lesson!

He he!! Thank you, was never great at maths at school, very easy to just copy examples and change the figures, not so good for exams when you have to know what formula to use!, got better when I had to work out how to work things out for university projects etc. I suppose the trouble is I only work out the things I need or want to know and maybe go around this in a rather long winded route! I guess you have to have a pretty good repayment vehicle to be able to take out an interest only mortgage .

geeka

Right, ive found more information. my original agreement is a together tracker mortgage. my original agreement has my first loan (secured) and it says the agreement is with regulated by the consumer credit act 1974. ive got a copy of the signature. I did 2 other secured loans against it as well. My statements have FSA on it but they say secured loan.
What do we think?

Evenfields wrote: »

Hi there,

If your loans were taken out in 2004 & 2005 and the amounts taken out were originally all below 25k, even if they were secured they would have been covered by the CCA. I presume they were linked to the Together product? Did you get one loan and then get two further advances?

The only difference which is why I presume your statements mention it, is as I posted before, the rules changed in 2012 to bring Secured loans under the regulation of the FSA. However, any loans taken out before 2012 (don't have exact date) will have in effect dual regulation i.e. both CCA and FSA will regulate them. The law of CCA will still apply.

The reasoning behind it I believe is that as Secured Loans are secured on property, they wanted to bring them more in line with residential mortgages which have always been regulated by the FSA.

As I understand it, Secured loans were also involved in the statement mistake.

So fingers crossed eh!

BTW do your agreements say Fixed Sum Loan regulated by the Consumer Credit Act?

anxious2

Hi, has everyone who is entitled to redress received it yet? We had a letter ages ago telling us that we are entitled to it, and that they would send out new statements showing the new balance, but we've had absolutely nothing more from them since then. Ours was originally a Together mortgage, but is now de-linked (you don't know how much I regret that...!), I don't know if that's making a difference to the timescale for us? The letter did say they would send us the statements within 12 weeks, but reading this thread, it sounds like everyone has now had theirs.

lennonc1

I have still to receive mine, however I am in dispute at the moment on how this is paid! As far as I am aware they are staggering the redress to customers doing so many a fortnight, so it is done in batches. I am waiting patently for my revised statements so I can figure out exactly how much is due!
I take it you are paying a silly interest rate for the loan if de linked now?
C

anxious2

Thanks, I shall continue to be patient then! They do have 12 weeks, so I suppose there is plenty of time yet.

lennonc1 wrote: »

I take it you are paying a silly interest rate for the loan if de linked now?
C

Yep! We have already paid back the original £10k, and then some, and yet we still have 14 years and a balance of £9k left to go!!!:eek: And the silly thing is, when we remortgaged and so de-linked it, we were actually remortgaging with Northern Rock! I wrote a letter of complaint at the time, as the rate rise came as a complete shock to us (yes we were young, naive, and didn't read all the minutiae of the T&Cs), and they actually responded accepting partial responsibility, as they did not make it clear to us that this would happen. The only silver lining, if you can call it that, is that our mortgage is now on the loyalty rate.

Anyway, we are now taking this loan into a DMP, so who knows what will happen to the rate now. They have written to accept the plan, but haven't mentioned the interest. Will be nice to knock a couple of grand off before we even start though, hence my impatience! Good luck with your battle btw, I agree that they should have to refund the money, although due to our situation, knocking it off the balance will have the most benefit for us.

RubyRubyRubyRuby

Hi all,
Only just catching up with this thread having received a letter confirming I am eligable for my interest returned, and having also received revised statements to that effect reducing the term of my loan.
To save reading back 55 pages, is this what the majority has received and are they happy with this? The letter did state that if you wanted to query this, then to contact them.
Like the PPI mess up, is anyone persuing for compensation on top of the rebate or are they happy with what they have?

Thanks in advance to whoever can summarise the thread in less than 55 pages & answering my queries!

Ruby!

lennonc1

There is quite a lot of us contesting the method of redress, we would prefer direct payment and terms stay the same, others are happy with term reduction but I suppose it depends on your circumstances. I would like to think interest should be added on top as they have accrued a lot of interest on our payments taken illegally, we are quite within our rights to expect consultation on this, they simply can't dictate how this will work when they have committed the breach.

kazonuk

still no letter from NRAM

has any ex-NRAM customers had anything?