Northern Rock Together Mortgage misold

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
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Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242
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    What is the basis of your claim?
  • Ashman69
    Ashman69 Posts: 6 Forumite
    So in 12 years of repaying a £30,000 loan, the balance was £28,000.00. Surely it should have been a lot lower?
  • [Deleted User]
    [Deleted User] Posts: 35,242
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    Why? Surely that depends on the rate you were paying?
  • Ashman69
    Ashman69 Posts: 6 Forumite
    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.
  • [Deleted User]
    [Deleted User] Posts: 35,242
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    It could never be a proportional reduction each month, as interest is higher at the start, like any other loan.
  • Ashman69
    Ashman69 Posts: 6 Forumite
    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
  • TrickyDicky101
    TrickyDicky101 Posts: 3,510
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    Ashman69 wrote: »
    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?
  • Nasqueron
    Nasqueron Posts: 8,631
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    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
  • Ashman69
    Ashman69 Posts: 6 Forumite
    Hi TrickyDicky

    No holidays and no delayed payments. I agree with your figures, maybe slight more than £8k
    A
  • Ashman69
    Ashman69 Posts: 6 Forumite
    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 mortgage
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