Miscalculated Mortgages From Northern Rock

Miscalculated Mortgages - Northern Rock

If you took out a mortgage with the lender previously known as Northern Rock back in 2009 or before and you still have the same mortgage now, there is a strong likelihood that your borrowing may be subject to miscalculation due to interest charges being applied incorrectly. This is irrespective as to whether your original mortgage is now operated by Virgin, UKAR (UK Asset Resolution), Landmark (previously NRAM - Northern Rock Asset Management) or Whistletree.

Northern Rock was born out of a vast number of building society mergers and in 1997 it converted to full banking status. The early 2000’s saw a massive upsurge in lending and very quickly Northern Rock become one of the top five mortgage lenders in the UK. Their “Together” mortgage saw the bank gain huge notoriety, and not all of it positive. Nevertheless, lenders such as BM Solutions and Alliance and Leicester scrambled to put similar mortgage propositions in place.

Record levels of mortgage lending were funded by borrowing on the money markets and then packaging and selling the loans on as bonds to investors. In late 2007, the unthinkable happened. Nobody wanted to buy these “Granite Bonds” and Northern Rock hit the wall in spectacular style with it falling into public ownership in February 2008.

Their “Together” proposal was innovative and allowed the borrower to take a 95% mortgage secured on the property with up to a further 30% (capped at £30,000) added alongside as an unsecured loan which was at the same rate as the mortgage borrowing. In times of huge house price growth, it allowed borrowers to bid substantially more than valuation to secure a property with the added ability of being able to also roll up three existing debts into one easy monthly payment.

Many customers sought to try and remortgage away in order to achieve a better rate on the secured portion of the borrowing. This meant leaving the unsecured element with Northern Rock. An expensive trade off was losing the preferential rate on this portion. In the early years, Northern Rock priced this retained borrowing at 3% over their variable rate, but this margin was rapidly increased firstly to 5% and then to 8%. With a current Standard Variable Rate of 4.79%, some borrowers in that situation can be paying as much as 12.79%. A small fortune in times of record lows on interest rates.

Northern Rock were keen to innovate their product range. Fully flexible mortgages allowing mortgages holders to reduce their balance to as little as a £1 and then borrow all the way back up again were heavily pushed. No further underwriting on the future borrowings was a recipe for disaster.

They also came late and aggressively into the Buy to Let market. A deposit of as little as 15% was enough to secure your investment property. They laterally offered lifetime tracker rates on Buy to Let borrowing and with wafer-thin margins too. It was financial suicide and finally on 14 September 2007, the run on the bank started. The rest as they say, is history.

We can also offer to audit any mortgages taken with Northern Rock after 2000 and for a minimum starting balance of £100,000, providing that they were then repaid no less than 7 years later.

For more information on how to receive our entirely free mortgage audit, please contact Beat the Banks on 01382 200474 or for free on 0800 193 1234. Or if you live locally, why not simply pop into our office with any of your your mortgage paperwork and we can start the audit process immediately. Our hours are 8am-8pm weekdays, except for Fridays when we close at 6pm. On Saturdays it 10am-2pm.

Miscalculated Mortgages

We’ve worked for banks on the inside. We know that they often get it wrong and when they do, they try to cover it up.

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Are you eligible?

Have you been with the same mortgage provider since 2009 or earlier?

You are eligible to claim

If you originally borrowed more than £100,000

Are you eligible?

Was your mortgage taken through a non-mainstream lender (often referred to as a sub-prime mortgage) on or before 2011?

You are eligible to claim

If you originally borrowed more than £75,000

Are you eligible?

Did you repay your mortgage in the last 10 years and were you with the same lender for more than 7 years?

You are eligible to claim

If you originally borrowed more than £100,000 or £75,000 if via a non-mainstream lender

How were mistakes made?

The key criteria and being eligible to claim?

In many cases, sight of the mortgage offer alone can often give sufficient indication that a claim is likely. If you have this paperwork available then you can post, scan or email the information to us along with our signed authority permitting Beat the Banks to share the contents of your mortgage paperwork with our partners. If you prefer, you can simply bring your documents along to our office in the centre of Dundee. Sight of the loan offer is helpful, but not essential.

If a mortgage meets the key criteria, the next stage is to recover the FULL borrowing records from the mortgage provider via a Subject Access Request under the terms of the Data Protection Act 1998. Once received, the file is checked to ensure the lender has fully supplied the correct information to allow a full audit to take place. The documentation is then passed to our partners.

Details from the loan offer and the mortgage terms and conditions along with annual statements, rate change letters and any associated correspondence are then fed into our certified and validated mortgage checker. A report is collated highlighting and verifying the scale of any interest and charges applied to the borrowing in error.

You will then be advised of the outcome. If we believe that there is no claim or if any claim is of insufficient value to proceed, we will advise you. You will not be liable for any of the costs that we have incurred to date.

If we believe that the level of interest and/or charges applied to your mortgage account are of sufficient value to proceed with a claim, we will let you know. If you decide not to proceed, you will not be liable for any of the costs incurred to date.

Should you wish to proceed, we will forward your file to our solicitors and they will contact you to progress a claim. To engage their services, you will be asked to sign and accept their terms and conditions and also a contingency fee agreement.

To find out more on how we can help you recover overpaid interest and charges on your mortgage, our office numbers are 01382 200474 or 0800 193 1234. We are open from 8am-8pm Monday to Thursday. On Fridays we close at 6pm and on Saturdays it’s 10am-2pm.

If you prefer, you can email enquiries to claim@beatthebanks.co.uk or simply call with your paperwork to our office.

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In Financial Forensics

Contact us today, start your claim journey and together we will beat the banks.

Or call us: 0800 1931 234

Miscalculated Mortgages

We have had huge success with PPI mis-selling claims against banks and are now putting our knowledge and expertise into uncovering potential mortgage claims. Unlike other claims companies, the team at Beat the Banks are crammed full of banking and financial services knowledge. We literally have hundreds of years of it.

We’ve worked for banks on the inside. We know that they often get it wrong and when they do, they try to cover it up.

Key to our process of reclaiming mis-sold PPI is our ability to recover original lender records and this often goes as far back as the early to mid- nineties. With our financial background and training, we like nothing better than trawling through this information, asking questions and seeking expert opinion when we believe that consumers may have been marginalised by banks.

This led us to look at how the banking industry have dealt with mortgage borrowing versus the terms and conditions of the contract that applied when the mortgage was taken and also to look at FSA & FCA guidance that has applied to mortgage lenders over the years.

Having completed our due diligence, even we are surprised at the results.

Beat the Banks have now uncovered that millions of mortgage customers in the UK have been systematically overcharged interest and charges on their borrowing. This can range from a simple breach of the mortgage terms and conditions through to unfairly managing mortgage arrears.

By auditing thousands of mortgages, we can establish that the incorrect application of interest and charges by lenders can apply in up to 85% of all mortgage contracts. This includes interest only and buy to let borrowing.

In conjunction with industry partners, we can now fully audit how charges and interest payments have applied to mortgages in direct comparison to what has been stated in the T&C’s accompanying the lending.

In many cases, sight of the Mortgage Offer alone can give sufficient indication that a claim is likely.

Miscalculated Mortgages By Northern Rock

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Beat The Banks

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