Mortgage payment increase query

louisebx

Hello,

I'm wondering if anyone can give any advice for my mum re her mortgage. We can't get any sense from Nationwide.

About 6 years ago she lost her job and Nationwide agreed that she could pay interest only on her mortgage. This went on for about 18 months. Once she was back in employment she paid the monthly mortgage amount (+ arrears) and in October 2015 she cleared the remaining arrears in one lump sum and the monthly payments return to normal, until last month. The payment increased by £60.

When she phoned, thinking maybe there had been an amount left over from the arrears, she was told that the mortgage had been recalculated and mortgage increased by £60/month for the remainder of the term (approx. 8 years). The only answers from Nationwide is that they 'recalculated all their mortgages in December last year because they'd mis-calculated and there would have been money left to pay at the end of the term' and another answer from someone else relating to 'recalculated because you were paying interest only'.

Can anyone give any further insight with these minimal details? Her understanding was that once the arrears were paid, she'd be back to normal payments.

Thanks for reading/any help and advice you can offer!

getmore4less

Some numbers would help like how much was owing when she went interest only the rate and term.

and the same before and after this recent rise

were the arrears from pre interest only or to catch up to the repayment schedule.

That might be enough to have a second guess.

First guess is if you go interest only when you return to repaymanr the new payment will be higher than the old one because there is less time to pay the debt back.