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Northern Rock Together Mortgage misold
Ashman69
Posts: 6 Forumite
Hi need some advice
In 2007 I took out the above mortgage so 100% + £30,000 on top, The mortgage element was interest only and the additional £30,000 was a repayment.
So after 12 years of paying the interest only on the mortgage and a repayment on the £30k, my settlement figure on the £30,000 was £28,000.00. At the time I was told this is how the repayment was worked out, and the next 18 years would be a more accelerated dent into the balance.
I accepted their excuse, there was not much publicity on claiming mis sold mortgages. I recently saw an article so now interested in knowing if I have a claim against NRAM.
Many thanks
A
In 2007 I took out the above mortgage so 100% + £30,000 on top, The mortgage element was interest only and the additional £30,000 was a repayment.
So after 12 years of paying the interest only on the mortgage and a repayment on the £30k, my settlement figure on the £30,000 was £28,000.00. At the time I was told this is how the repayment was worked out, and the next 18 years would be a more accelerated dent into the balance.
I accepted their excuse, there was not much publicity on claiming mis sold mortgages. I recently saw an article so now interested in knowing if I have a claim against NRAM.
Many thanks
A
0
Comments
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What is the basis of your claim?0
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So in 12 years of repaying a £30,000 loan, the balance was £28,000.00. Surely it should have been a lot lower?0
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Why? Surely that depends on the rate you were paying?0
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The loan runs with the length of the mortgage so it was over 25 years. NRAM dictate the repayment amount so it clears at the same time, so like any other loan, it should be a proportional reduction every month.0
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It could never be a proportional reduction each month, as interest is higher at the start, like any other loan.0
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So you think the figures are right? 30k over 25 years and after 12 years the balance has only gone down by 2k? Must be me then0
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So you think the figures are right? 30k over 25 years and after 12 years the balance has only gone down by 2k? Must be me then
I would expect more to have been paid off - £8k ish for a traditional repayment loan (estimated using an annualised rate of 4%).
Have you had any payment holidays or arrears or made any delayed payments that may have incurred charges?0 -
With loans the first few years are typically spent clearing the interest, not the capital balance. For a 25 year loan, paying off 2k off the balance after the interest is gone after 12 years isn't unexpected
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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Hi TrickyDicky
No holidays and no delayed payments. I agree with your figures, maybe slight more than £8k
A0 -
Nasqueron - Really?? I have had loans before and they always reduce proportionally. Never have I experienced a loan where you pay all the interest off first and then the capital. If that is the case, adds you my argument this was a mis sold mortgage0
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