Possible Mortgage Misselling

DW190

My daughter and her partner took out a 105% mortgage back in the days of Northern Rock (NR). Nothing wrong at the time as they improved the house with the extra and could afford the repayments. The mortgage was a fixed rate deal for two years.


A couple of month before the end of the two year deal they received a letter from NR advising the deal was coming to an end and to contact them to arrange a new deal or they would automatically revert to the standard variable rate.


Following the advice they signed to a new fixed rate deal. The problem I see from the recently S.A.R. requested data from NR Asset Management is that the new deal commenced only three days before the two years had ended and the early redemption fees (3000) where applied.

The mortgage was always paid but still in neg equity when they sold, having to borrow to clear.

My question: Could this be a misspelling claim?

dunstonh

Could this be a misspelling claim?

no. it is neither misspelling or misselling.

It is an administration issue that they need to raise. It may not need to go to complaint.

Amst

You say they followed the advice and accepted a retention rate - it's near impossible that NRAM advised them to stay but they were presented with options to stay on the SVR, take a new fixed deal, or leave.

If they were in negative equity from day 1 it is lucky they were given so many options when the fixed rate ended...

robatwork

DW190 wrote: »

My question: Could this be a misspelling claim?

Well that's my typo of the month right there.

Thrugelmir

DW190 wrote: »

The mortgage was always paid but still in neg equity when they sold, having to borrow to clear.

Interest only mortgage?

DW190

robatwork wrote: »

Well that's my typo of the month right there.

I needed a p at the time of typing.

DW190

Thrugelmir wrote: »

Interest only mortgage?

Not interest only. Repayment.

The only part I wasn't happy with was had it been done four days later there would not have been the substantial early redemption charge.


The redemption charge was well in excess of the new fixed rate saving over the period compared with the variable rate.

Just looked to me like they were pushed at the time to trigger the redemption fee.

The re-mortgage was with Northern Rock before NRAM.


Water under the bridge I suppose.

minimike2

I would be contacting them to point out the error for sure.

There is no reason for them to have paid the money and it is a simple admin error on behalf of NR.

They should agree to put it right without much fuss....

Bermonia

How long ago was this, whilst one would hope if it were a genuine error NRAM would put it right, they may take the view that the complaint is time barred if it happened over six years ago.

DW190

Bermonia wrote: »

How long ago was this, whilst one would hope if it were a genuine error NRAM would put it right, they may take the view that the complaint is time barred if it happened over six years ago.

This was back in 2007 when it was still Northern Rock.

Initial purchase was Oct 2005 with a two year fixed rate.

In 2007 received notice of fixed rate ending and accepted offer of new fixed rate for three years.


The new rate commenced three days before the end of the old two year rate and the early redemption fee was applied.


It was in 2011 when they sold up and paid the neg equity.


It just looked to me like the new three year deal should have commenced at the end of the first two year deal as the initial letter advised to review as the deal was ending. NR got it all dated so the redemption fee was applied.


Sort of thing I would have expected from a loan shark but not NR.

davidmcn

As above I suspect c0ck-up rather than conspiracy here - but also have doubts about being able legally to do much about it eight years after they ought to have noticed being £3k down.