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Do you have a Northern Rock Together Mortgage? Read This.


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Hi there,

 

Think i posted in the wrong place earlier.

 

I have been reading this thread with great interest. I have a Together Mortgage with NR and am too in the same boat.

 

I was told over a year ago the the unsecured part of the mortgage was claimable as it was unlawful and i did have a solicitior looking into this but have not heard from him since Jan , even though i have case and he said i had a case.

 

Has anyone has any positive news on this? Has there been any updates at all?

 

I am in the process of selling my flat and paying off the mortgage but would love to know if there is any chance of claiming.

 

Many thanks and wait to hear

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  • 1 month later...

Hi

 

Just discovered this forum and very interested to read that its not just my wife and I who have had this experience.

 

In 2005 we took out a Northern Rock Together mortgage on the advice of an 2 X IFAs (how naieve were we!) Fixed rate ended last year and we are paying 4.79%.

 

Loan was £30K - and the paperwork says that it is covered by the CCA 1974, which covers loans up to £25K. They are in breach surely?

 

Plus we can transfer the mortgage to another mortgage provider, and the loan stay with NRAM. This would mean they have a £30K unsecured loan on their books. Let alone the fact that the interest rate would double - surely that is loan sharking...

 

Anyway, has anyone any advice??

 

Should we be seeing a solicitor?

 

Should we move our mortgage and just stop paying the unsecured loan??

 

I guess we are luckier than most as (including the US loan, we are in positive equity - just), but I am keen to get some options ont he table.

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  • 2 weeks later...
  • 2 weeks later...

hi i am in this predicament as well re comimg to end of our 5 year fix and have been told about the xtra interest on top. please email me m a r c i b b s @ h o t m a i l . c o . u k i am happy to take legal action as well

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  • 3 weeks later...

I am also keen to follow up and assist with any claim.

 

Could you please provide me an update asap.

 

If there is a group claim being submitted im happy to assist both time and finance where i can.

 

Thanks

 

Matt

 

P.S. Fatdog you seem to have got the furthest with this is there anyway of contacting you?

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  • 2 months later...

I really hope this helps and we together! excuse the can get somewhere. This has been the cause of sleepless nights and like others before we get the messages of "you knew what you were doing" you are right, but I didn't know that Northern Rock would collapse and they would then adopt a "get rid of customers" philosophy which was the plan as stated by the government.I also do not want the loan written off, well I do but I realise that the best I can get is a fair deal.Our situation is secured part been paid off for threey years so am now paying 5% above SVR on £30k meaning in all paying back over £90kI have had the credit agreement looked at and it was deemed fair. This was done by a no win no fee company so I will never know. I have been to the ombudsman (excuse the spelling) and they have deemed that NR have no have no complaint to answer.I have been to my MP (LIB DEM HAPPY TO BE IN A COALITION SO NOW MUCH USE). He wrote to the Treasury being publicly owned and to quote the Treasury "The objective is to create value for money for taxpayers as shareholders, This means the Government will not intervene in commercial matters such as pricing as product design" To translate, if it makes money, we will turn a blind eye!I am at a loss with this so would love people to get together to come up with a plan. If I was still a NR customer I wold have no complaint. My isuue is when my fixed deal came to an end, NR sent me a letter saying now on SVR (INCREASE IN MONTHLY YMENT OF £450 APPROX) and there are no other deals to offer you so you should explore other lenders.I am determined to fight this so am happy to exchange details. My next plan is to explore a lenders "duty of care" I bought a flat for £141k and they lent me £153k However it was worded they knew that they were giving me more money and putting me straight into Negative Equity. I then moved to a house costsing £221k and they lent me £240k.. The same again. If people state it was a mortgage and a loan, codswallop, on paper yes, they knew it was for the house so it was a mortgage!I phoned NR and asked for a mortgage, I didn't ask for a mortage and a loan! Interested to hear any info apologies for waffling.

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  • 3 weeks later...
  • 2 weeks later...

Hi...

Myself and my partner were recommended Together Mortgage by a broker which we took out in 2005, rang them in 2008 with regards to applying for a new mortgage because we were coming to end of fixed term, told we couldnt have one, but that our mortgage would shortly be going up from £900 to £1200 a month! Had no choice but to sell, and we then got stumped with the ERC of £3795 plus had to pay back £1000 of help with costs, even though we were only 5 months short of the fixed term. Then they had the cheek to write to us saying they hadnt requested enough in the shortfall and we had to pay a further £700. After looking at what we paid them we had to also pay a valuation fee of £335, an arrangement fee of £695, an application fee of £75 thats when buying! When we sold we had to pay a discharge fee of £250 aswell! Are all these charges right as we feel N~orhtern rock have well and truly screwed us over!!

We genuinely feel we were mis sold this mortgage and on our key facts statement it says that this company has recommended we take out this mortgage, is there anything we can do does anyone know?

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  • 2 weeks later...
  • 1 month later...

Hi, where do I start!

Reposession has been threatened for nearly 2 years now. THey dont know what to do with it, NR that is.

Original mortgage taken out in 2004 for £169000

Together one with unsecured of £30000

 

 

Within a year of the above they lent a further £20k, £44k and £6 k !!!!!!!!!!!!!!

 

It came out of the fixed period a year ago.

 

Cutting it short, i am now divorcing my husband as he was and IFA, dealt with it all, completed the forms fraudulently and i dont want to be held liable for anything other than the originla cost of the house. I have argued this with NR and they told me to report him to the police to be investigated. I did, but northern rock said because the police say its a civil matter between NR and him, the police wont look into it...so neither will NR!!!! The police gave them a crom number etc but they have shoved it under the carpet!

 

NR gave us 125%LTV and a further £80odd k within a year on him self ertifying his income and incompletely filling in application forms etc full of lies that had NR checked the previous applications they woudl have realised! YES, dumb old me, i just signed what he put in front of me, but may i add i have a disability along with bipolar disorder and was wuite ill at the time.

 

I am trying to get all the loans off this and just be held liable for the original house price. Difficult as said above to remortgage from 125%LTV not to mention i am on benefits only.

My ex has also various charging orders against the property as...wait for it....he has a further £110k in loans and credit cards!!! IDIOT!!

 

I Want to get his name off the house so he cant put further loans against it, but i want him to still be liable to pay towards it, not sure if this can happen.

 

i have been agreeing reduced payments fo0r the last 2 years but this has now made over £13k arrears. I am thinking to stop paying and let it go to court for a judge to decide what to do with it ,

 

I agree the CCA can only cover £25k so how can it apply to these??

thanks and good luck all

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Just to add to the above, this total of £285k is on interest only, always has been and is currently £1100 a month, I am on benefits! TO change it all to capital and repayment with them would bring it up to £1700 montlhy!!!!!! I seriously need advice and help please. I have struggled for 2 years with family help but now i need an end to it!

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  • 5 weeks later...

Hi, I have just tuned into this as I am at breaking point with stress caused by this "together mortgage".

 

I brought a 1 bedroom flat at the height of the market in Janurary 2007, and was advised that the together mortgage was the best offer for me, as I didnt have enough of a deposit to get on the ladder. I went on a 2 year fixed interest only mortgage and have been stuck ever since!

 

I now have a fiancee and daughter of 2 1/2yrs, and we ran out of space a long time ago. Our daughter still sleeps in a cot but is quicky out growing it an we have no room to put a bed for her! We sold the flat at a loss but that all fell through at the last minute. I was selling for 88k but that just about covered the mortgaged amount - the loan would become detached and go upto 12% on repayments!

 

Now I am having trouble getting a buyer, NR have said that I cant sell for less than the mortgaged amount, nor can I change to a buy to let as the mortgage is no 70% or less than the flat value and the rental income wouldnt be 120% of the mortgage repayment! I find all this out after their advisors looked at my account and told me that I could switch to a buy to let!

 

We desperately need out of this place but there is no help or advice out there for us...this is the first positive thing I have come accross!

 

Please message me if this is continuing as I would be very interested to join a group and take this forward.

 

Fat dog, if you are still involved with this please let us know how things are going and whether or not you have gotten any further with gaining group support for what could be a break through for "Together" customers out there.

 

Kind regards

 

Chris.

 

P.s This is the first time I have used one of these forums so not entirely to sure how to communicate.

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Hi my wife and I also have a together mortgage which includes a £30k unsecured loan. House is up for sale at the moment and we are on svr. If and when we sell, the interest on the unsecured element will rocket. We feel that NR have got us in a no win situation. We can't remortgage with them when we move and we will be forced to pay more interest on the £30k. One option would to be to pay off a significant chunk when we sell but then we would have no deposit for our next house and so back to square one after over 5 years but with circa £15k hanging over us at about 11%. I think the terms and conditions of the loan for be fair enough if NR would let us remortgage with them, but they won't because we are now part of their bad mortgage book!

I would be interested in taking part in an action group. We are in a better position than some of the above posters as we can more than afford the mortgage at the moment, but the way the market has turned out together with the clauses off this agreement mean we are being penalised and feel like we are being treated like people with bad credit and will end up paying more interest ultimately affected the choice of our next house.

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  • 2 weeks later...

Hi

I am asking this not on behalf of someone but for my ownreasons. My son following a bit of a messy divorce and bankruptcy about 2 yearsago met this girl and has been living with her for about 10 months. Iunderstand that he gives her so much towards the mortgage per month.

5 Years ago this girl and her then boyfriend bought a houseusing the together mortgage. When the boyfriend left about two years ago shetried to get his name taken off the mortgage but was told that that wasimpossible. The fixed rate is now coming close to finishing.

My son and this girl are now looking into getting a housetogether but here’s my problems.

Is it true that NR would not amend the mortgages just ‘freeze’a name on the mortgage.

She as been advised to pay off the loan part before applyingfor another mortgage. House value about 110K, Mort about 90K and loan about12K. These figures are what I have gleamed from her. The chances of my sonbeing allowed any part of a mortgage are slim although he as not had credit for2 years and she can have the mortgage on her salary. From what I can gather itis possible for him get a loan to pay off the loan. So is it possible to paythe loan off after this fixed term period.

Because she only talks about her mortgage and when she buysa new house, I’m checking!

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Hi, I would imagine the loan is still payable. The only implication of the fixed rate period ending is that the interest rate is now at standard variable. Best thing to do is call NR but I would hope and imagine it is possible to pay off. The only downside I can think of is that her boyfriends new loan will be at a much higher interest rate than the current NR rate and the length of the loan will be much shorter making it more expensive from a cash flow point of view as well.

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  • 1 month later...

Hi,

 

Also have the same problem as everyone else here.

 

Mortgage £97,000

Unsecured Loan £30,000

House Value £115,000 so in negative equity of £12,000.

 

Mortgage was taken out on fixed rate 6.9 percent, in April 2007, for 5 years. Fixed rate finishes 1st March 2012.

 

So if I sold the house at £115,000, I would still owe £12k on the unsecured loan and the interest rate on this would rise 5 percent on top of the NRAM SVR. Which takes us around the 9 to 10 percent as it currently stands.

 

Has anyone found any loop holes in this to avoid the interest rate hike? I would be more than happy to carry on paying the £12k on a normal SVR short term.

 

Anyone in the same position or who can advise on a way forward with this?

 

Matt

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  • 2 weeks later...

I am also in a similar position to many of the above!! I have recently sold my property with an unsecured amount outstanding of £21k, i have taken this to the ombudsman & logged a complaint against northern rock! But after doing some research into unsecured loans I have found numerous information stating that if the amount paid back in interest makes the loan unaffordable & not payable over a reasonable time scale then the interest must be frozen!!

 

I have split up with the person named on the mortgage & am fighting with them to split the debt as well as make it affordable!! By paying the increased interest rates I will pay back £83k on that 21k loan over the remainder of the loan, I mean this can't possibly be reasonable!!!

 

Would be grateful for any advice or success cases in what seems to be a total shambles of a company!!!

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  • 2 months later...

HiI see no one has messaged on this thread for a little while. If anyone is still looking at this discussion I to am in the same boat as many of you. I have a together mortgage with the interest on the un-secured part of the loan going up 8% above NR variable standard rate. My mortgage fixed term came to an end last June 2011 and so I am currently on their variable rate anyway now. My house is up for sale as I have moved in with my partner to his dwelling but I will end up owing NR unsecured around £20,000. I dont even want to think what this figure will be by the end of the having to repay it back. Like most people here I was very niave about this mortgage when having it suggested to me and as I really needed somewhere for myself and my daughter to live without having to keep moving from one rented house to another it seemed like a good deal at the time. Of course I realise it was a "to good to be true" deal. If anyone has got anywhere with solicitors on this subject please please please to join the group and let us know how you got on. Hope to hear from you soon.

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  • 2 weeks later...
Just a quick update on this.

 

I've had my 'fixed-sum loan agreement' looked at by a couple of legal advisors. All agree this has several points to argue and are looking into whether anyone has actually taken NR to court over this to mark against any such existing test case.

 

Interestingly, all of the advisors I've spoken to claim they have had "an influx" of people questioning the legality of these agreements so it could be the case that many people are considering legal action against NR.

 

If you have one of these Together Mortgages with NR, I'd really like to hear from you - whether you have already looked into raising a complaint or not.

 

Hello to youI have a together mortgage and my 5 year fixed rate of 5.89% ended January 2012. I am now on the SVR of 4.79%. I am happy to be included with this complaint. Excellent news!

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  • 2 weeks later...

Hi

 

Im in the same boat as everyone else with the Northern Rock Together mortgage in Nov 06. Loan was on 7.54% interest rate. I now live overseas and would love to sell but in negitave equity. Also now mortagge has been passed to NRAM (new side of NR when it was bought over)

 

Mortgage was £80,000

Unsecured Loan £30,000

House Value £80,000 so in negative equity

 

If you have any info that may help it would be appreciated.

 

 

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Hi I am new to this forum,

 

My husand and I also got the Northern Rock Together mortgage back in 2007, with a £106k mortgage and £25,625 unsecured loan. At the time we were very naive, first time buyers and had no advice or help from family about finances/mortgages. We went through a broker who said we would never get on the property ladder if we waited to save up a deposit as prices would be too high for us then. My husband had a couple of loans and were told the only way we could get a mortgage would be through NR and to consolidate his loans and roll it up into this £25k+ loan that would also include a small 'deposit' towards buying the house and all attached fees. In effect my husband's original debt was increased because at the time he was charged heavily for early repayments on them.

 

Obvisously from the worry that prices were going up and this was our last chance to get onto the property ladder we very badly (in hindsight) took the mortgage out.

 

Fast forward 5 years, now on the bad books with NRAM, we paid £112k for our house, which is now worth £96k if lucky, and in negative equity. Very worried what will happen in a few years time if we manage to pay enough off to sell the house to cover the mortgage, but then the unsecured loan will be subject to raise by 8% interest!

 

Was anyone else requested to consolidate their debt at the time of taking out the mortgage/loan in order to be able to afford it?

 

I would like to be added to the complaint. Thanks.

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