potential mis selling of northern rock together mortgage

Let_Us_See

TUFTB your rants cheered me up and made me smile. However, whilst you have your own strong opinions, and to a certain extent I agree providers should act responsibly, at the end of the day it is still a rant and does little to help the original OP.

dunstonh

Tell us what causes you to believe otherwise, dunstonh?

I am happy to debate and discuss the issues with people willing to do the same but there is no point doing that with you as your rants show clear bias and probable chip on your shoulder which makes reasoned debate pointless. You appear to live in a world of black and white with no shades of grey and the only things wrong in life are caused by anyone with any link with financial services. Most ordinary people do not live in that same world.

opinions4u

mrayner88 wrote: »

It wasnt explained to my knowledge that the unsecured loan would be increased to personal loan rates if he re mortgaged or moved house.

I haven't worked close to mortgages for over seven years. I never had anything to do with Northern Rock. But I knew what happened to the personal loan rate if you moved mortgage. It was never a secret. I'm fairly sure it was in their adverts. It was certainly in their mortgage small print.

I understand the option is there to take out a loan with another provider in order for this to be paid off with NRAM but this is not something we can do at the minute financially as i have a large personal loan.

This does rather suggest that you are, as a couple, continuing to live beyond your means.

Since I have found this out we have now switched to remortgage and my partner has come out of his pension at work in order for us to save money towards the loan and deposit for a another house.

I want to cry. What pension benefits have been given up? How much was the employer contributing? Can you reverse this decision? This could be an even more significant financial disaster being created.

I feel thoroughly saddened by this thread.

TurnUpForTheBooks_2

Let Us See, I thank you for your response to my hopefully truly humorous but seriously directed rant, and I agree, it does little to help the OP other than to provide a slightly more balanced perspective. The horrible truth however means that it is up to you and I and all well-meaning citizens to bring down, and bring to book the awful regimes which still ride like black knights. It will take a serious head of steam from activists and an organised public interest (e.g. like the MSE anti-PPI campaign) to bring our economies back into the hands of the people, and not the few. Part of that would I am sure result in sufficient momentum to bring full restitution to hapless individuals like the OP.

I have often winced at, and even physically avoided being exposed to the antics of Russell Brand, but I saw a repeat of a brief interview with That Chatty Man yesterday evening and some of it rings true for me - well at least the 45 seconds or so from 38:30 into this recording!

The rest of you can talk about recycling now if you wish! That seems to be a favorite financial services tactic ... as I said, here we go again :-|

Imma_Number

For the latter part of the OP's partner's pre-mortgage life and so the time they were learning about finance & housing etc house prices had increased pretty much continuously. This combined with the likes of First Plus pushing 125% mortgages as advertised by the popular and, seen to be, mathematically savvy Carol Vordermen, the fervour in the press etc I'm not surprised that people took out these mortgages.

However this isn't the whole story. Since 2007/08 house prices have fallen which was the complete opposite of what the OP's partner was expecting but that didn't seem to change their 'plan' of the increased house price covering the loan.

The Debt-Free Wannabe board is a great resource of hints and tips of managing your way out of a situation like this, learning to live within or well within your means. Certainly a far more reliable way of recovering financially than hoping for some regulatory intervention.

I hope the redress money from NRAM went towards paying down the secured loan.

NewBe

mrayner88 wrote: »

thank you everyone for your replies.



Since I have found this out we have now switched to remortgage and my partner has come out of his pension at work in order for us to save money towards the loan and deposit for a another house.

As pensions are tax-deductable, and his employer may also be making contributions, any 'savings' you will be making may not be worth it in the long-term.

Also, if your partner is still working in Police, it will more than likely still be a public sector 'final salary' scheme. Any 'breaks' in membership will effect the overall pension on retirement.

Did you get any advice before doing this? You don't want to be asking about this in a few year's time

Trying_to_be_good

Please have your partner look at getting back into his pension scheme - as others have said, this is likely to be a much bigger financial mistake than the NR Together Mortgage - if you head over to the Debt Free board there are lots of tips and people to help you save money from your spending in other ways.

dunstonh

Also, if your partner is still working in Police, it will more than likely still be a public sector 'final salary' scheme. Any 'breaks' in membership will effect the overall pension on retirement.

I really hope he is not in the police any more. That is a staggering good pension (even post proposed changes). The amount paid is relatively small after tax relief and a lower NI rate. Coming out of that would give little financial gain in the short term but hundreds of thousands of pounds lost in the long term.

JPB123

Why is it always mis-sold? Never mis-bought? During the boom years I can recall dozens of clients looking for I/O on a self-cert, trying to live a lifestyle beyond their means.

Is that all the fault of those horrendous financial advisors? Caveat emptor applies to all things in life. Trying to avoid responsibility for one's actions is endemic in society today. Would the OP's partner accept the excuse that "someone else made me do it"? Oh that's ok then, I won't arrest you. It's societies fault that you don't earn £100k, just nick what you want.

Sorry, but I have no sympathy whatsoever. The KFI that he would have been given listed the mortgage and loan separately, and clearly illustrated the rate it would move to if no longer linked to the mortgage.

I am an Independent Mortgage Adviser

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice

John1993_2

VFR-Rider wrote: »

Completely OT (apologies OP), but I'm not totally sure if TUFTB's is trolling or not... I'm going to vote yes...

He's on my ignore risk, as he seems to add nothing to threads, he just seems very angry about something.