View more on these topics

Court of Appeal overturns £261m Northern Rock redress case

Northern-Rock-Building-2009-700x450.jpg

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.

Recommended

Northern-Rock-700x450.jpg

Northern Rock borrowers win £261m High Court case

Northern Rock borrowers are set to receive £261m in compensation after winning a High Court case against the former bank. Northern Rock Asset Management, the nationalised “bad bank”, will have to pay an average of £6,000 in refunded interest to 43,000 borrowers. The case relates to Northern Rock’s infamous “Together Mortgage”, which allowed consumers to […]

FCA-FSA-Building-Sky-Contrast-700x450jpg

FCA fines ex-Bradford & Bingley finance director £30k

The FCA has fined former Bradford & Bingley group finance director Christopher Willford £30,000 for failings ahead of a rights issue at the height of the financial crisis. The regulator says Willford failed to provide the board with up-to-date information about B&B’s financial position. The final penalty has been reduced from £100,000 to £30,000 following […]

House-Keys-Mortgage-Estate-Agent-700.jpg

Borrowers could ruin mortgage chances by acting as guarantors

Borrowers risk damaging their chances of getting a mortgage by offering to act as a guarantor on small loans for friends or relatives. Brokers are being urged to raise the issue with clients, as existing borrowers could even make themselves mortgage prisoners if they agree to guarantee a relative’s loan without understanding the impact on […]

Networks hit back over mortgage advice concerns

Mortgage networks have hit back after the FCA raised concerns about a lack of quality control over advice. The regulator’s post-MMR thematic review into advice and distribution found in 59 per cent of cases from lenders and brokers suitable advice was deemed to have been given, with just 3 per cent classed as unsuitable. The […]

Tech winners keep on winning

By Ali Unwin, chief technology officer & fund manager, Neptune Artificial intelligence, driverless cars, big data. As technological advancements – and disruption – increasingly dominate headlines, Ali Unwin sets out six key themes he is watching in 2017. Read more Important Information Investment risks Neptune funds may have a high historic volatility rating and past performance […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment