NRAM Loan

Minkiewe

Hi,

Can anyone offer some advice on a loan myself and my partner took out with Northern Rock.

It was a unsecured load for 26000 attached to our mortgage, we sold the property after 5 years and the loan remained but with a higher interest rate. We have been paying the loan now for 7 years, but when I requested a settlement figure the amount outstanding is 25928!

We've made payments of nearly 13000 but the amount we owe is unchanged!?

NRAM don't know why either and Im waiting for a phone call but the person didn't sound hopefull!

Any advice would be greatly appreciated

chalkie99

Minkiewe wrote: »

We've made payments of nearly 13000 but the amount we owe is unchanged!?

Of course it isn't unchanged. The moment you borrowed £26,000 you owed a heck of a lot more than that to cover interest over the life of the loan.

Ask them to check whether they have provided you with a balance or a settlement figure. No-one can advise properly unless we know the interest rate and loan term.

antrobus

A rough back of an envelope calculation suggests that total repayments of £13,000 over 7 years on a £26,000 loan would be equivalent to an interest rate of about 7%. That's certainly within the realms of possibility for an unsecured loan; cheap even, some might say.

Apples2

Sounds like another Mis-sold loan. Nobody said interest was being added.

You don't even indicate the term of the loan, or your monthly repayment, or the original interest rate, or the "higher" interest rate.

I wouldn't wait for a phone call back, dig out your paperwork so you have some idea what it is you are asking.

Thrugelmir

Minkiewe wrote: »

We've made payments of nearly 13000 but the amount we owe is unchanged!?

Paid any capital back? Or just interest.

tonkinator

If you can tell us your interest rate (APR), the original loan term (how long borrowed for) and confirm that you've not missed any payments, at any point, or taken payment holidays at the start (or since) then people will be able to give you more accurate help.

At the moment it's just guess work as we don't have the required details