Back pain nightmare sparks mortgage repayment pain

Life can be flipped in an instant.

That’s the feelings of the couple interviewed by the Herald on Sunday who recently renegotiated with their bank to pay interest only on their loan.

Their life had been on track when they bought their “retirement” home north of Auckland in 2019 after selling their former Manukau house.

Working as a truck driver and executive assistant, the couple – who didn’t wish to be named – had previously found their loan payments comfortable.

However, terrible back pain forced the man to go in for major spinal surgery in August 2022.

The bones in his spine had “disintegrated” and turned to “mush”, possibly as a result of years spent in his former job as a mechanic, his wife told the Herald.

However, the surgery to put supporting rods along his spine didn’t go well. He woke up unable to use his left hand, with the fingers curled up and immobile.

Another surgery in June 2023 to try to fix his left hand, not only failed to recover any movement in his left hand, led to him also losing movement in his right hand. Now he only has use of the thumb and forefinger in his right hand.

Unable to work, ACC is providing compensation but at a reduced income.

Adding to the turmoil, his wife lost her job as an executive assistant – a position she had held for years – in December 2022, just months after her husband’s first surgery.

She has since secured three short-term contracts, but it’s resulted in a $17,000 cut to her salary and loss of a “really good package” that included medical insurance and profit share.

During this time, interest rates have also been on the rise.

Just after the first surgery, the couple came off a 2.95 per cent fixed interest rate and decided to fix on a new one-year term at 4.5 per cent.

Then they fixed again last November at 6.95 per cent.

It’s led their monthly payments to jump from about $2500 two years ago, to $3500 last year and now $4000.

By securing an interest-only agreement with the bank, they have managed to reduce their current payments back to $3500. But it’s a small reprieve. The past two years have exhausted the couple’s savings.

They do have nearly $300,000 in their KiwiSaver but were only allowed to pull out $4000 – just one month’s mortgage payment.

The couple advised others struggling to talk to their bank or broker as soon as possible.