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

Treadmill

"As my gran used to say to me "Suck it up and get on with it" and that's what we should all do."

We are not all you, hence my initial quote. terms and conditions are a two way street, the banks are quick enough to penalise borrowers for not adhering to them so nobody should feel any remorse when the boot is on the other foot. Also as far as grumbling is concerned when dealing with banks currently paying back billions due to Mis-selling various products is it too much to believe that there are customers who where advised to take unsuitable products ? Of course not, the profit margin is all the banks looked at not suitability.

I hope that everybody gets every single penny that they are rightfully entitled to personally.

Pie-rosenberg

I for one do not blame northern rock that im stuck with their mortgage nor do i blame the mortgage broker who assured us that interest rates were at a record low and it was impossible to see a recession similar to that of the 90s. This mortgage was a safe bet. I do blame northern rock for adding 8% interest to the unsecured element if you move the mortgage to another company making it unaffordable. I do blame them for keeping the svr artificially high knowing that we have to pay it, because we can not leave. Ripping us off and denying discounts due to loopholes.

To the previous poster, if we should all stop blaming others for this mortgage and accept responsibilty. Then surely northern rock are doing the same and are accepting that the documentation we received was wrong and refunding us the interest from the dates in question.

jamesd

PAUL67 wrote: »

Therfore surely if the monthly payment is to remain the same then the total payments remaining will have to change after refund applied as we are dealing with a fixed term loan of £x per mnth over x mnths. either the monthly repayment is reduced or the term of loan is.

Agreed. The money has to end up going somewhere and if the monthly payment amount doesn't change the loan ends up being paid off early and with less total interest to pay as well. What would have been the interest part instead becomes a capital overpayment part.

bunnygreen

Pie-rosenberg wrote: »

I for one do not blame northern rock that im stuck with their mortgage nor do i blame the mortgage broker who assured us that interest rates were at a record low and it was impossible to see a recession similar to that of the 90s. This mortgage was a safe bet. I do blame northern rock for adding 8% interest to the unsecured element if you move the mortgage to another company making it unaffordable. I do blame them for keeping the svr artificially high knowing that we have to pay it, because we can not leave. Ripping us off and denying discounts due to loopholes.

To the previous poster, if we should all stop blaming others for this mortgage and accept responsibilty. Then surely northern rock are doing the same and are accepting that the documentation we received was wrong and refunding us the interest from the dates in question.

This is exactly my thoughts. I am not saying I am not responsible, but I do blame being young and naive and clearly an easy target. It is not the mortgage really it's the being stuck with knowing the interest rate on unsecured loan is going to rocket ridiculously. Hopefully will have a way around that. I do think we should never have been allowed it in the first place and we really would have been better off financially renting.

happyhappyhappy123

Treadmill wrote: »

"As my gran used to say to me "Suck it up and get on with it" and that's what we should all do."

We are not all you, hence my initial quote. terms and conditions are a two way street, the banks are quick enough to penalise borrowers for not adhering to them so nobody should feel any remorse when the boot is on the other foot. Also as far as grumbling is concerned when dealing with banks currently paying back billions due to Mis-selling various products is it too much to believe that there are customers who where advised to take unsuitable products ? Of course not, the profit margin is all the banks looked at not suitability.

I hope that everybody gets every single penny that they are rightfully entitled to personally.

It would be helpful if you actually took the time to read what I have said. This thread and my post are about the NRAM loans that have paperwork not completed/sent out according to the way they should and the fact that people are already starting to talk about compensation for this and grumbling about these together mortgages. I think you may have gone off at tangents to support your arguement as I am not talking about mis-selling and neither is NRAM but at someone point there is always someone to pipe up with the "mis-selling" angle. This is not what this is about and not what my post is about at all. This post and this thread are about the CCA Regualted loans and a !!!!-up with paperwork, why is that anything to do with mis-selling and compensation. Why should anyone receive compensation for that? Yes, yes, yes, there should be redress as this is what we are due, not compensation. My point is, leave NRAM to sort out what it has done wrong and "set right" the issue with the interest over the 4 year period without everyone starting to jump on the compensation bandwagon as they are complaining about a mortgage they took out in the 1st place. I have a together mortage and I am in negative equity....is that Northern Rocks fault for selling me it in the 1st place - NO. I knew the risks, I can read the bit on form where I signed where it said - can you afford to pay if....... and I asked myself the question before I signed and so should everyone else if they are taking their finances seriously. Yes, banks brought the country to it's knees but I chose to take this mortgage out and so did thousands of others in order to stay in the house that I do. I am not looking for compensation for it as it wasn't mis-sold. I made the wrong choice, I wanted this house and I'm sure if people were honest with themselves, they would admit they are probably annoyed with themselves for taking it in the first place hence the "suck it up and get on with it"

I don't feel any remorse for NRAM. They've admitted their mistake, they are trying to deal with it and I really hope upon hope that any redress helps to get thousands of people out of that negative equity, me included. But compensation, no. Why?

NorthernRockNewbie

Hello Everyone,

I've been investigating our Northern Rock Together Mortgage on and off for a few years now since I discovered that if we remortgaged and left the unsecured loan with NR that the interest rate would jump to 8% above the SVR. Like others here, this has prevented us from remortgaging and I am particularly upset about this because it wasn't explained to us when we got the mortgage approved and there is no mention of it on the loan paperwork (only in the mortgage papers). There's no way I would have taken out the mortgage at the time if we had been told about this.

Additionally, like others here, our unsecured loan is over £25k but the paperwork still says in bold across the top that it is covered by the CCA 1974 (CCA Only covers loans up to £25k). I went as far to get some advice from a solicitor who suggested that Northern Rock could state that the loan was covered by the CCA so long as they ensured that the loan was managed in such a way that it did meet the various clauses of the CCA. The solicitor also suggested that we get a barrister to investigate it fully though although this would cost several hundred pounds.

I wonder if the admin here could start a seperate thread for those of us who have unsecured loans over £25k with Northern Rock? Our situation is more complicated and I think if we could gather our resources then maybe we could get some solid answers. NRAM couldn't tell me whether or not we would be receiving a refund although they were certainly aware that some of their loans over £25k state they are covered by the CCA.

On another point, what I really can't understand is that they are still enforcing this 8% jump if you move your mortgage. The mandate for NRAM is to payback the taxpayer the money the government used to bail out Northern Rock (through no fault of ours). If NRAM waived this clause then hundreds of families would be able to remortgage and the tax payer would get the money back much faster! If I'm honest I think the reason they don't do this is because NRAM (the "toxic" bank) actually makes a profit!

Thanks for reading! Hope we can maybe start a seperate thread for those of us with unsecured loans over £25k?

downhiller

There is a thread already

claret_mike

for your 25k+ loans...its currently the post below this one on the board

NorthernRockNewbie

Hi Downhiller, do you know where that thread is...sorry, having trouble finding it.

Treadmill

https://forums.moneysavingexpert.com/discussion/4342285