Soft Second Mortage Stayed Interest-only too long. Best Resolution?

InvidFlower

I have what I'm guessing is a pretty unusual situation. When my mortgage was originally created in 2005, in order to avoid PMI and larger payments we had the opportunity to get a "soft second" loan. The mortgage was split into two and the smaller one (of $30k) was set to have the payment be interest-only for a portion of time and then increased so that it'd be paid off at the end of 30 years along with the main loan. It was impossible to pay to the principal of the small loan since it automatically got applied to the larger loan's principal instead.

The switch to higher payment was supposed to happen automatically (from $121/m to $195), but I'm very disorganized and didn't realize it was supposed to happen 3.5 years ago in mid-2015. I inquired recently and they confirmed they messed up and their loan team is currently figuring out the best course of action.

The rep thought it was likely they'd just extend the mortgage pay-off date by 3.5 years, but seemed open to suggestions if I felt strongly about a different resolution.

Anyone have any thoughts on something that might benefit me more? On the one hand, I had $74/m extra in my budget (a total of $3k I didn't pay) in minimum payments. In theory that let me pay more into the regular $120k mortgage. But I made no progress on the soft second loan and it feels like I essentially threw over $5k into the void.

Intuitively it feels like I lost more than I gained, but it seems a bit overwhelming to figure out what I should ask for that they'd agree to. I mean I could ask them to lower the principal to where it would have been if I made the higher minimum payments, but that's probably too far in the other direction? Thoughts?

Thanks!

ACG

This is a UK website.