‘Nationwide changed my mortgage loan from interest-only to repayment’
A single reader arranged a perpetual curiosity-only mortgage loan with Nationwide, but obtained a letter stating it would be transformed to repayment 
Photograph: ALAMY
I acquired an undated letter from the “head of transaction processing” for Nationwide four months in the past informing me that my curiosity-only home loan would have to be reverted to a repayment mortgage. This would come into impact from next month.
This mortgage loan has been in force for many many years. When they began it, it was on an arrangement of a perpetual interest-only home loan.
Nationwide have been aware at the time there was no car required to repay this loan and they agreed to this by means of the nearby branch. I was fully mindful of my situations at the time of the loan and so had been Nationwide.
RI, Staffs
This letter was naturally rather alarming. You called Nationwide and have been told there was no problem and to carry on as prior to. Right after that, though, Nationwide mentioned this reassuring data had been incorrect. Your account would be reviewed by a senior man or woman, you have been told, and you would hear more within a month. All stayed quiet, even though you rang.
When you did manage to make get in touch with with the guy you had spoken to earlier, he mentioned they believed you had been sent a response. He asked for private specifics of earnings and so on, in order for Nationwide to take into account the affordability of your altering the mortgage to repayment. Once more, the deadline in which they promised to get in touch with you passed with no reply.
When I contacted it, Nationwide said its data showed the term of the additional advance, which was what you were notably concerned about, as 5 many years and the repayment motor vehicle was chosen as “sale of primary residence”. It stressed that the unique letter and tips you obtained were proper in stating that the outstanding debt needed to be repaid at the finish of the phrase for the more advance. Along the way, Nationwide told me that the outstanding stability of the further advance was a tiny significantly less than £2,000.
This was far less than the quantity I had considered, so I voiced my doubts. It reconfirmed the low figure. Nevertheless, it transpired that Nationwide had left off a nought and the amount is £20,000. This variety of typo strikes me as disconcerting.
You have 4 mortgage loan accounts with Nationwide – all set up on an curiosity-only basis. Only a single had a term remaining when you wrote to me and I recognize nothing at all had been confirmed about the other people. After I contacted Nationwide it agreed to extend the term of all this lending, which includes the £20,000 even more advance.
It says it had until finally then meant that the further advance need to be repaid imminently. Now the terms of all the mortgages are for 19 years and 9 months. These will all stay on an curiosity-only basis.
Provided the degree of service you acquired, Nationwide apologised, giving £250 as a compensatory payment.