Let's talk about the NRAM loyalty rate scam

jonesMUFCforever

You could all save a lot more than 0.25% by remortgaging if you are not in negative equity of course.

_Andy_

"They are making a fortune at 4.79% when the base rate is 0.5%." - banks don't obtain funds at the base rate though.

lizards

We're in the process of selling because we've only just got out of negative equity after overpaying for the last few years.. I can't imagine many people are remaining by choice!

Deleriad

Discovered this myself about 18 months ago. It's a classic bait and switch trick. Reminds me of websites offering cheap deals that are so limited that for all intents and purposes they don't exist. There might be a recourse along those lines. It would be interesting to know how many mortgage products NR had just before they went bust which didn't automatically go onto a special rate that was significantly worse than the loyalty rate. If it turns out that for essentially there weren't any then the so-called loyalty rate would be deceptive. However given that NR doesn't exist any more it might be hard to make a case. It would be useful research though and might contribute to showing a pattern of behaviour.

Compare PPI. This was sold as an advantage but most people couldn't benefit from it. NR's Loyalty rate was marketed as an advantage but if most people could never have benefited from it then it may constitute miss-selling.

RupertTheCat

I was given the loyalty rate about May last year - they sent me a letter telling me I qualified for it, and I'd never heard of it before. It knocked £50 a month off the mortgage. Every little helps I guess.

craaaigo

This thread probably belongs in the mortgages section. I'd missed it myself. Theres some very knowledgeable posters who would be able to help there that probably haven't seen this.

JimmyTheWig

downhiller wrote: »

However to qualify for it you can't be on any "special" deals. It appears as though everyone is on a "special" deal as almost everyone has a clause in their mortgage that knocks 0.1% off the SVR after a set period

As suggested above, can you ask to be taken off the special deal?

Deleriad

JimmyTheWig wrote: »

As suggested above, can you ask to be taken off the special deal?

Not as far as I know.

JimmyTheWig

Deleriad wrote: »

Not as far as I know.

What does you contract say about this?
Does it say you have to be on a special deal if they offer you one?
Or did you agree to the special deal (on the understanding that you would never go to SVR) at some point since?