Northern Rock Loan - Where to Start?

[Deleted User]

Brie said:

I would also be questioning why the loan was forced on them in the first place.  Surely this is little different to PPI and other unscrupulous sales tactics.  I wouldn't be surprised to hear that the advisor was getting a bonus based on the bits s/he could tag on to a mortgage.

The loan wasn't forced on them, advisor recommended it for whatever reason. Nothing at all like PPI and no, the advisor wouldn't get a bonus, particularly on a fee paying money

JCS1

SeanG79 said:

My guess is that the loan was secured on the property and so not regulated by the consumer credit act. So when you defaulted on the loan, the full amount repayable (all the remaining payments from default to end of term of the loan) fell due.

Second Charge Loans only became regulated in March 2016. 

A lot of these Northern Rock together mortgages had an unsecured loan alongside, saw this a lot in a past job

Thrugelmir

Brie said:

I would also be questioning why the loan was forced on them in the first place.  Surely this is little different to PPI and other unscrupulous sales tactics.  I wouldn't be surprised to hear that the advisor was getting a bonus based on the bits s/he could tag on to a mortgage.

More often or not the money was used to clear existing debts. Enabling borrowers to refinance onto a lower rate.  Very different lending era to today when lenders have a duty of care towards their customers, affordability requirements etc. Northern Rock became insolvent due to their aggressive , poor quality lending policies. Some of the Executives/Directors, post the collapse of the Company, were subsequently fined and banned for life from holding positions in the Financial Services industry for deliberately misreporting mortgage arrears.