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Norwich Union Equity Release product


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Does anyone in this forum have any experience of dealing with the above product? Can anyone explain ( perhaps from NU) why they continue to charge a huge compound interest charge even after the borrower has died? How can this be legal, or ethical, or reasonable? I am now apparantly responsible for interest charges without having had the benefit of the equity release product......although Im happy to say that my relative did and good for her too!! Norwich Union seem to be profiteering from my loss to the tune of 7.6% compound interest.

No where in the agreements for this loan did they clarify that interest will continue to be charged after the death of the borrower and the implication is that all you have to do is sell the house to repay the debt.

The house has to be sold to repay the debt and Im sure that it is right to repay the original loan and interest up to the point my relative died, but afterwards????

Surely this is just a gross attempt to make more money out of the beneificiaries of the Estate.

 

NU have made little attempt to explain themselves so far although I have instigated a complaints procedure to little affect. In fact they are perfunctory in the way in which they speak to you citing only that they have a claim on the house, ( ie first claim) by way of threatening us to settle.

 

Another bank to whom the estate owe money have waived all the interest charges for 6 months, have allowed us to make payments as and when we can and have been expemplary in the way in which they have treated us. This loan was tiny in comparison and was lent based on the value of the property although there appears to be no direct claim on the property itself.

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