Belfast Telegraph

Northern Rock to contest compensation ruling

By Graeme Evans

The state-owned part of Northern Rock is to challenge a ruling that could lead to compensation for more than 41,000 borrowers.

Northern Rock Asset Management (NRAM) said it will seek leave to appeal against last month's decision in the High Court, which related to errors in the lender's paperwork.

Even though no one lost out financially, the High Court ruled that borrowers are entitled to redress worth £258m, meaning customers will see their account balances corrected or their interest payments refunded.

The case relates to Northern Rock's Together Mortgage, which allowed customers to borrow up to 95% of the value of their home on a secured basis, as well as take out an unsecured loan of up to £30,000.

Belfast Telegraph