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

dan323007

I took out a 95% mortgage with Northern Rock in August 06, I also have a loan that runs alongside the mortgage which started at approximately £22000, this was transferred to NRAM when the split happened. My account number is less than 16 digits and I'm assuming I fall in to the 'should receive a letter' category. Can someone help though, will they have to pay back the interest from the beginning of the loan or from the start of 2008?

GhIFA

Cknocker wrote: »

Well I received a letter from NRAM this morning, it basically says they are investigating it and will write again within 8 weeks to let me know if my loan is affected.

There seems to be a lot of misinformation around on this one, in one breath they say it mainly affects Together Mortgages (Which I have) and on the other it says its loans after the bank was nationalised in 2008 - as far as I'm aware the together mortgages had disappeared by then.

Also it wasn't until much later that the paperwork changed - I applied for a change of parties last year, they sent the forms out in April, I sent it back a couple of months later, at which point they returned it as they had changed the forms from Northern Rock to NRAM - exactly the same form though - although that may be the technicality I guess.

With regards to who pays, ultimately it is the taxpayer, but the taxpayer also receives the profit from NRAM - which is continually growing, as they don't issue new loans, only take in repayments.

No it doesn't, the treasury receives it as it is owed the £19.6billion paid to bail NR out, which is a different situation entirely to the way you've described it.

amn_2

Well I got my letter today so looking forward to hearing from them in 8 weeks!

dan323007 wrote: »

I took out a 95% mortgage with Northern Rock in August 06, I also have a loan that runs alongside the mortgage which started at approximately £22000, this was transferred to NRAM when the split happened. My account number is less than 16 digits and I'm assuming I fall in to the 'should receive a letter' category. Can someone help though, will they have to pay back the interest from the beginning of the loan or from the start of 2008?

I believe the interest will be from when the CCA changes came in to effect (October 2008) until the situation is rectified. I guess that would be Feb 2013 going by their 8 week deadline so approx 50-52 months worth of interest. I think I'm due another statement at the end of this month so I'm keen to see what info is contained on it.

I was speaking to my brother who is a solicitor and he suggested that they may have to include interest on the amount as well. Just a passing comment he made but it would be interesting to see if that is the case and if so what the interest rate will be. Hopefully it will be their SVR :rotfl:

rmart

has anyone here had a letter with a loan over £25,000 ?

drussmonkey

I also had the letter today, but found it to be the most rushed and deranged thing I've ever read. It contains about 15 numbered points of an FAQ, half of which repeat, verbatim, what was said in the previous point. Whoever put this together needs to go on a brevity course.

I have 3 loans, one unsecured and two secured. I've only been sent the one letter so far, and it refers to my loan using a number I don't recognise so I can't place which one they're referring to.

On the plus side, I've calculated that, if eligible, the unsecured interest paid since Sept 08 is about £3300, and roughly the same again for the secured loans. That'd be nice.

Happytogetdebtfree

How did you work it out ?

catwoman150

You might not get the cash back. It maybe be taken off the loan instead. It would be nice for the cash. I too got two letters We will see in 8 weeks what happens next.

Happytogetdebtfree

Well ive had a look at my paper work, i havent got a letter but i dont understand what mistake they made hopefully will get a letter tomorrow lol x

Cknocker

I'm starting to think that this is a way of the government getting rid of the together loans.

Theres loads of people (myself included) who cannot get rid of these loans, due to minimal equity. This money goes straight onto the unsecured loan, meaning that most of us will be in a position to remortgage elsewhere, with the government receiving a flurry of redemptions.

Missy_Moo_2

Happytogetdebtfree wrote: »

Well ive had a look at my paper work, i havent got a letter but i dont understand what mistake they made hopefully will get a letter tomorrow lol x

I think I am right in saying the following...

The mistake they made is every time they sent a statement they had to show 3 things. 1. The total amount originally borrowed. 2. The opening balance for the statement period and 3. The closing amount for the period.

Northern Rock only showed the opening balance and the closing balance of the loan. The original amount borrowed seems to have been missed off.

We have a loan with Northern Rock, the original amount we took was 24K in May 2008. We received a letter this morning from them. I have been and looked at the statements and they only show the opening/closing balance, but from around April 2011 I can see the original amount borrowed on the statements.

We will be interested to see the outcome, even if it is taken off the balance and not actually paid to us that is fine with us as we really want this loan to be paid off