Lily’s lender asked her to pay more after she spent a year making incorrect repayments because she'd been quoted the wrong mortgage amount.
What happened
Lily decided to reduce her mortgage term by two years. After making the change, she began to pay the new, higher monthly repayments that her lender had quoted.
But a year later, her lender wrote to say she hadn’t been paying enough. It told Lily she’d have to repay the shortfall over the next six months.
What we said
We reviewed the details and could see that Lily had received a quote for the increased repayments and she couldn’t reasonably have known it was wrong. She’d been paying the amount she’d been quoted in good faith.
We upheld Lily’s complaint and concluded the lender had made a mistake in its calculation. We instructed it to write off the shortfall as if Lily had made the correct payments that were due.