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

natalie_1982

bunnygreen wrote: »

PS. How would I be able to work out what it might possibly amount to? I don't want to get my hopes up but it is looking promising!

I have always regretted taking out this stupid Together mortage and my husband and I are stuck in our home at the moment waiting to get out of negative equity so it really would help!

I understand they have to pay back the interest since the loan was taken out, and on each statement (sent quarterly) it details how much interest has been paid. For me, it was around £400 per quarter for the past 5 years, on an unsecured loan of £20k interest 6.35%

amn_2

natalie_1982 wrote: »

I understand they have to pay back the interest since the loan was taken out, and on each statement (sent quarterly) it details how much interest has been paid. For me, it was around £400 per quarter for the past 5 years, on an unsecured loan of £20k interest 6.35%

I don't think it is since the loan was taken out. From the BBC website:

All of the interest charged on these loans since October 2008 will be refunded.

and

Affected customers would be refunded for all the interest they paid after the mistakes were made in 2008, economic secretary to the Treasury Sajid Javid confirmed in a written statement.

So my estimate is a little optimistic but probably about 4 years of interest to be refunded I guess (Oct 08 - Dec 12?)

suedong

My son had a £30,000 loan on top of his Northern Rock mortgage during this period will he be included in this?

hesjane

Are customers, including former customers, contacted automatically - or will they have to 'apply' for the money?

hesjane

suedong wrote: »

My son had a £30,000 loan on top of his Northern Rock mortgage during this period will he be included in this?

I'm not sure, but the MSE article states "Only those with unsecured personal loans of less than £25,000 got the dodgy paperwork."

As your son's loan was for £30,000 it is possible that he will not 'qualify'.

On the BBC website it states "Many of the loans were provided on top of Northern Rock's Together mortgage which was popular before the credit crunch, and allowed homebuyers to borrow more than their homes were worth" - so I would imagine that any homebuyer who borrowed up to £25,000 as an unsecured loan would qualify.

I think if I was your son I would keep an eye on this and if people have to 'apply' for the money I would apply 'just in case'

suedong

Thanks for your advice, he really could do with some money so fingers crossed he is included

hesjane

a bit more digging and the Telegraph states:

"Most of the customers concerned borrowed less than £25,000, Mr Osborne told MPs. Those affected will be receiving letters from Northern Rock shortly"

So maybe those who borrowed in excess could qualify....and the good news is that customers should receive letters automatically.

bigbadwolf500

I have a £30k loan as part of their Together mortgage. Just checked my documents and it clearly states on the document that its subject to the CCA 1974, even though pre 2008 there was a £25K threshold!
All my NRAM statements don't show the original loan sum borrowed.
Could get interesting!!

kerry221331

I have moved house since I had the loan and it is also paid off, they arent aware of my new address, not sure what happens in these circumstances!

Bj282922

In 2005 I took out mortgage with northern rock, that mortgage had a unsecured loan attached to it of £7000, the current balance is £5600 of that unsecured loan now. Does anyone know if I will be eligible for a rebate? Thanks