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

lizards

This £270 million.. I wonder if the figure arrived at was based on those who had loans under £25K. Because if it is based on that, then if those who have loans over 25K manage to challenge successfully (given I suspect most have the "CCA 1974" text on the agreement) I imagine that figure would shoot right up.

Our loan was initially for £29500 in 2004 (a remortgage in 2007 brought it to around 28K) so a bit frustrating as we originally asked for £25K but they reduced the amount of the secured part instead. I'm sure they did this to a lot of people.

davross

We took out a mortage (not a "together" mortgage) with NR in 2006 and then took out a secured loan of 15k later that year and another secured loan of 12.5k in 2007. We moved to another lender in 2011. I have checked the statements and they dont show the original loan amounts. Does this mean we are likely to qualify for a refund of the interest paid to NR for the secured loans?

Bj282922

If I only have one account number that covers my mortgage and unsecured loan does that mean I'm on a together mortgage?

m1234w

I took out a 100% mortgage in 2007 with NR with the loan amount being £10k.

However, the property was repossessed and I had to declare myself bankrupt in 2011.

No refund for me then I take it?

bunnygreen

Hevs81 wrote: »

I take no one has received a letter yet ??? I have one of these together mortgages from back in 2006 and had a £17 000 unsecured loan attached to it ! I'm hoping I could be getting something back as I'm stuck in this mortgage ! If I remortgage the the additional unsecured loan rate rockets upto something like 14%apr from the 5.9 original rate! Anybody else in the same boat ????

No letter, I went straight to the door as soon as I went home!
I am in exactly the same boat as you. I phoned them recently to find out what would happen if we paid our mortgage off and they said our unsecured loan shoots up. We are stuck in our house at the moment and desperate to move into a 3 bed. After naively getting ourselves into this ridiculous situation taking out a together mortgage, it would be good to see a little bit of something positive. We were pressured so much into buying a house and then pushed into this mortgage which was clearly wrong for us, but you live and learn I guess.

It certainly looks as though it will only be people who are on together mortgages and those are the only ones I believe that are unsecured loans taken out with mortgages, not as a separate loan.

top*chick

So after reading the entire thread im still no clearer, can anyone help??

I took out an unsecured loan in 2004 of less than 25k and only ever recieved yearly statements and even then some years they never appeared.

Any advice would be appreciated :j

DSJS08

At the risk of going OT slightly I'd like to share a view i'm beginning to form with regards to these mortgages.

Sure, those of us in the NRAM together mortgage in negative/equal equity feel agreed, naive and perhaps in some cases duped into this position. BUT, at least we have the opportunity to overpay and reduce the mortgage in the way that a normal repayment works, all being at a higher rate than most at this moment in time.

If indeed the expected low rate of interest remains at 0.5% until 2018 as some are predicting then there is no reason to suggest that both the secured and unsecured rates for NRAM won't stay at 4.79%. Therefore at this point some of us should have being able to claw back enough equity in overpayments to move away from NRAM. The unsecured element (as an outright loan) is still lower than the best high street loan amount (5.4%) and we should be doing our utmost to farm that off to 0% cards etc during that period too and pay off.

All of this is of course with the caveat that you can afford to shuffle the pack and overpay.

The crux of my point is this: Give some thought for those people now who want to buy but cannot afford to generate a deposit, especially in times where renting costs are spiralling.

As much as I curse my poor judgement, I'm certainly starting to think that maybe we were (in a perverse way) lucky to grasp that final rung of the ladder whilst it was still there.

Please feel free to shoot holes in this view, It's only in it's infancy in my mind anyway and i'd love some way to challenge it.

amn_2

DSJS08 wrote: »

At the risk of going OT slightly I'd like to share a view i'm beginning to form with regards to these mortgages.

Sure, those of us in the NRAM together mortgage in negative/equal equity feel agreed, naive and perhaps in some cases duped into this position. BUT, at least we have the opportunity to overpay and reduce the mortgage in the way that a normal repayment works, all being at a higher rate than most at this moment in time.

If indeed the expected low rate of interest remains at 0.5% until 2018 as some are predicting then there is no reason to suggest that both the secured and unsecured rates for NRAM won't stay at 4.79%. Therefore at this point some of us should have being able to claw back enough equity in overpayments to move away from NRAM. The unsecured element (as an outright loan) is still lower than the best high street loan amount (5.4%) and we should be doing our utmost to farm that off to 0% cards etc during that period too and pay off.

All of this is of course with the caveat that you can afford to shuffle the pack and overpay.

The crux of my point is this: Give some thought for those people now who want to buy but cannot afford to generate a deposit, especially in times where renting costs are spiralling.

As much as I curse my poor judgement, I'm certainly starting to think that maybe we were (in a perverse way) lucky to grasp that final rung of the ladder whilst it was still there.

Please feel free to shoot holes in this view, It's only in it's infancy in my mind anyway and i'd love some way to challenge it.

Well said. We bought at the wrong time but that's not northern rocks fault. If prices had continued to rise and the economy had remained strong then you wouldn't hear a bad thing about the loans. Just a case of bad timing really. I would have been better off financially if I had rented for the last 6 years but no one forced me to buy. Just got to overpay and move on!

Hopelessly_Hopeful

Hi

My statements have an opening balance but just that from the last statement not the original balance.

Do they need to show the original opening balance please?

HHx

amn_2

Hopelessly_Hopeful wrote: »

Hi

My statements have an opening balance but just that from the last statement not the original balance.

Do they need to show the original opening balance please?

HHx

Yes they should have the original balance of the loan