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Northern Rock Together mortgage customers to share £270m payout

Northern Rock will be forced to pay £270m back to customers who took out its controversial Together mortgage after errors were discovered in loan documentation dating back to 2008.

Sajid Javid 480

UK Asset Resolution, the holding company established in 2010 to bring together Government-owned Bradford & Bingley and Northern Rock Asset Management, has identified loans issued by NRAM where the documentation is not compliant with Consumer Credit Act requirements.

The errors were associated with the top up loans used to create Northern Rock’s 125 per cent Together mortgages.

The period of non-compliance originated from changes to the CCA in 2008, prior to the separation of NRAM and Northern Rock.

In a written ministerial statement issued yesterday, Treasury economic secretary Sajid Javid said: “In selected letters and customer account statements, certain paragraphs of mandatory wording were written incorrectly and compulsory information about the amount of credit was not included in the statements.

“The CCA provides that a lender is restricted in how it can enforce a debt and borrowers are not liable for interest, over the period during which the lender has not provided the specified information.

“UKAR has undertaken an internal investigation and has consulted with legal counsel, the Financial Services Authority, the Office of Fair Trading, UK Financial Investments and the Treasury. Following this, the UKAR Board has recommended making proactive restitution to affected NRAM customers in receipt of non-compliant statements and default notices relating to CCA- regulated loans.

“Based on discussions with UKFI, the Treasury has no objections to UKAR’s proposed approach and UKAR will issue the corrected documentation and take steps to remediate interest and other charges to affected customers.

“Where redress is required, this will be made by correcting a customer’s account balance to reverse the consequences of them being charged any interest over the period in which the documentation is non-compliant.”



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  • ADD 28th June 2013 at 4:27 pm

    Love the non sensical rant that started this little chain. Something for nothing culture rules supreme.
    On a serious note, I don’t actually see how this ruling is in any way needed. From a simpletons point of view,it seems some wording was not correct. Nobody appears to have paid more than they expected or needed to because of this clerical error. So why are they being compensated. If somebody shows me they were disadvantaged by this then fine , put them back to the position they would have been in. But do not provide a bonus as they had the luck to be on the end of teh wrong bit of small print, that 99.9% did not even read.


  • CityBoy 28th June 2013 at 10:39 am

    I have to agree with anons comment, I may have, I think, doesnt wash anymore. If you dont know, how is anyone else going to know!

  • Phil 26th June 2013 at 10:49 am

    Well put anon at 11.32. It’s always someone else’s fault when things don’t go to plan. Grow up and take responsibility for your own actions.

  • ben 25th June 2013 at 11:32 am

    Whilst I am very sorry to hear of your babies illness there are a few questions here.
    How were you ‘mis-sold’ a mortgage over a period of 2 years? I presume you received a letter from your broker (unless you did it yourself in which case you are potentially responsible for your decision to take the mortgage) explaining why you took the together mortgage, maybe as you were unable to provide the required deposit for another scheme?
    You ‘think’ you paid PPI?? If you don’t know what you are paying for every month it is little surprise you are in debt
    As for being ‘asked’ to pay £5000, if your circumstances dictated that you had to pay this if you were to move then ultimately the choice was your to move and pay this fee, no one came and knocked on your door and demanded it.
    It is very unlikely you were mis sold anything however I am sure some ‘ambulance chasing’ firm would make some spurious claim on your behalf. However i would not recommend you try this course of action as it would probably result in costs being incurred by the professional who acted in your best interests at the time for defending their innocence. Hope this helps 🙂

  • Sarah woodfinden 24th June 2013 at 8:14 pm

    We were sold a northern rock together mortgage in 2004-2006. Part secured and part unsecured loan,125% mortgage. Think we also paid ppi? Then told we couldn’t renew it as they had stopped offering that together mortgage, So took out a 5year mortgage in 2006, however needed to move house due to our very poorly baby. So we were asked to pay £5000 early repayment charge! In the middle of the northern rock scandal. When we moved we seeked advice and paid money out to look into northern rock together mortgage and were told in 2010 we would be owed money!? However we have moved several times since and couldn’t get through to the people who had taken our money! So left renting for past 4 years nearly and in debt too! Yet keep getting told we were miss sold the mortgage but nobody can help us!? Any advice would be hugely appreciated!!? Thanks