Increased interested rate without informing the lender

Stef77

Hi all, I hope this post gets some feedback as I am a little lost here. Our mortgage with Nationwide was under my husband's name only. He passed away almost 2 years ago but the probate process took long time and only now I am finally able to move it under my name or pay it off, although I carried on paying the mortgage from my account without any break. I never received any correspondence from Nationwide as I was not the mortgage holder (and Nationwide did not write to my lawyer either) - now I have just found out that Nationwide has increased my mortgage interest rate since June and additionally they have been charging me for arrears as the new monthly payment from June increased by almost £100...
Can the bank do so?  Thanks for any advice you can give me. ...

MovingForwards

If it was in a fixed rate, which then expired, putting the mortgage onto their variable rate then yes, they can do this.

Thrugelmir

Where did the correspondence go? The NW should have been contacted by the appointed executors of the estate. 

dunstonh

 I never received any correspondence from Nationwide as I was not the mortgage holder (and Nationwide did not write to my lawyer either)

They would have issued a letter.  However, mail may have been suppressed until the executor details were confirmed and verified.

- now I have just found out that Nationwide has increased my mortgage interest rate since June 

You say your mortgage but how is it your mortgage?  If you were not on the mortgage, then the mortgage "belongs" to the estate.   You will need to take out a new mortgage to clear it or use other assets to do so.

 and additionally they have been charging me for arrears as the new monthly payment from June increased by almost £100...

Again, you should not be charged as the debt is not yours.  However, the estate should be charged if the mortgage is in arrears.

Can the bank do so? 

If the bank has followed the T&C of the mortgage then yes they can.   

Who is the executor (is this the solicitor) or are you the executor?

Did a monthly payment get missed or was the mortgage paid by standing order instead of direct debit?  (just wondering how it got into arrears).   Maybe a month was missed?

although I carried on paying the mortgage from my account without any break.

That was good of you but it was not your responsibility.   You should seek reimbursement from the estate.  Although if you are the sole beneficiary, that doesn't really matter.  

Lenders are normally very considerate of charges incurred because of death.   A word with them may well yield a positive response.  Although they may not speak to you unless you are the executor.  

K_S

@steff77 Generally speaking, NW is within their rights to do as described in your post. Having said that, I would recommend getting in touch with their bereavement desk to ask for help. From experience, they are really good at providing support and have a fair bit of discretion with respect to issues such as this. Good luck!

Stef77

Thanks, I am the executor as well as my probate lawyer but no correspondence from the bank. We checked and I only received the statement as I requested it. 
I set up a standard order for the mortgage paying the exact amount my husband paid (as I did not want to stay behind) and this was OK until June, when the rate increased and therefore the arrears built up (the difference from new rate to old rate).
I will get in touch with their bereavement desk, see what they say, thanks for the advice. 

Stef77

Thrugelmir said:

Where did the correspondence go? The NW should have been contacted by the appointed executors of the estate. 

They said they did not have an address to send anything to us, but this is wrong as they sent previous post to my probate lawyer. 

getmore4less

The existing statements should have had the details of the mortgage any fixed term rate and finish date, full term, payment  etc.

Setting up a payment and then ignoring for 2 years why?
you would have expected at least 1 statement in that time and should have chased that up. 

What has been the problem taking 2 years to get the grant is quite unusual are you sure there are not other issues elsewhere. 

Stef77

Yes, horrible mother in law that tried to stop the grant but this is another story...