The Court of Appeal has reversed a decision that that would have seen 43,000 Northern Rock borrowers paid total compensation of £261m.
In December, the High Court ruled that Northern Rock Asset Management should pay an average of £6,000 in refunded interest to borrowers who took out the infamous “Together Mortgage”. This allowed consumers to borrow up to 125 per cent of a property’s value.
The High Court ruled paperwork relating to unsecured loans of between £25,000 and £30,000 taken out between 1999 and 2008 was incorrect, and customers should be paid back interest and fees.
But the BBC reports the Court of Appeal has now reversed that decision.
In 2012, Northern Rock had to pay £270m in compensation for the same error, but only refunded those with loans of less than £25,000.