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Scottish Trust Deed Forum
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Topic starter
17/03/2015 11:09 pm
I have completed my trust deed and been discharged for over a year now. got a phone call today about my mortgage and called NRAM to discuss. I was told today that they received a dividend payment from my trust deed for the unsecured loan part of my mortgage but that I still had a balance of nearly £6000. when I started my trust deed 6 years ago I paid this unsecured loan as part of my mortgage payment and assumed they were not part of my trust deed as I had made full payment throughout. I spoke to a lady today @ my trustee company and she told me that this unsecured portion of my mortgage should be written off now as they made a claim on it. I am awaiting on a more senior member of her team to investigate and get back to me. (she was really helpful but was not 100% sure on legality etc.) has this happened to anyone else before?
17/03/2015 11:36 pm
Hi bsmith1986.
Would I be right in thinking this was a Northern Rock "Together" mortgage?
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Topic starter
18/03/2015 1:03 am
i don't know to be honest.I got £65000 secured and a £10000 loan. I paid £70000 for my house and that left us with £5000 to spend on a bathroom and other thing for the house moving in. talking to people in England about a trust deed is like talking an alien language.
18/03/2015 7:32 am
Hi bsmith1986.
This type of mortgage has caused plenty of confusion in connection to personal insolvency all around the UK.
The Northern Rock Together mortgage was very widely sold in the run up to the credit crunch. It was a mortgage accompanied by an unsecured loan. Confusingly both elements were often on the same account number.
The unsecured loan is included in a trust deed. Your mortgage payment should have been adjusted down a bit at the start of the trust deed to take this into account.
They then receive a dividend at the end of the trust deed towards the unsecured loan. The remainder is written off, just like any other unsecured debt. You're left with the mortgage debt only.
You may wish to get some detailed advice on this from your trustee who should have all of the relevant figures.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
18/03/2015 8:56 am
This certainly sounds like Northern Rocks 'Together Loan'
In terms of the trust deed, NR will normally take payment of the mortgage and an additional payment for the unsecured Together loan. Once the trust deed gains protected stays, the monthly payment will reduce to only the mortgage payment as the together loan is unsecured like any other debt and will become part of the trust deed.
After protection of the trust deed you should ( hopefully ) not have made any further payments to the together loan. NR would then receive a dividend at the end of the trust deed and the balance is written off.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
18/03/2015 8:59 am
Sorry I meant to expand on the payment bit. If you have been maintaining payments on the together loan for the duration of the trust deed, then all payment for this part should be returned to you/the trustee.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
18/03/2015 10:55 am
Sorry should have mentioned that this was a joint mortgage. Does this mean that my partner would now be liable as it is in both our names. Sorry for the confusion.
18/03/2015 11:09 am
That's correct bsmith1986.
Assuming your partner has not been in a trust deed, any debt that hasn't been repaid would remain their full responsibility.
That makes sense now in terms of why the monthly mortgage payment didn't seem to have been reduced.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
