Halifax Payment Holiday Complaint

inch_high

What do you guys think of this?

I know the reasons for not agreeing the payment holiday, I'm an underwriter for the Halifax but I just think its worth fighting for as per my reasons in my letter below...


TO: HALIFAX

RE: PAYMENT HOLIDAY A/********


I write in regards to our recent application for a Payment Holiday, which has been rejected due to the fact that there is a subsequent charge in favour of Trafford Housing Trust.

At the time of the mortgage completion, the Halifax knew that there would be a subsequent charge on the property, despite this, in Section 12 of the Mortgage Offer it states:


Payment holidays
Providing your mortgage is no more than one month in arrears and your mortgage is at least three months old, you can apply for a payment holiday.



I also note that on the previous rejection of a Payment Holiday request, on your letter dated 11th Feb 2008, the reason for the rejection was that the purpose was unacceptable (repayment of credit cards). It then went on to say that I can reapply in the future. Again, there was no mention of any restriction due the subsequent charge.


I hope that this matter can be resolve promptly and that I do not have to make an official complaint via the FSA. I feel that this is not "Treating Customers Fairly" as the correspondence I have received so far says that I can apply for a Payment Holiday.


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[SIZE=+0]Thank you for your letter received at our offices on 25th July 2008.

I would like to begin by saying how sorry I am that you have found cause for complaint about the service you have received with your mortgage.

I understand that your request for a payment holiday in September 2008 has been rejected due to the subsequent charge held over the property by Trafford Housing Trust Ltd.

I can confirm that we are unable to agree to any request for a payment holiday if a subsequent charge is held over the property. I have noted your comments that your mortgage offer detailed that 'providing your mortgage is no more than one month in arrears and your mortgage is at least three months old, you can apply for a payment holiday'.

Please note that this states you can apply for a payment holiday but does not confirm that your application will be agreed.

I have noted your comments concerning your previous request for a payment holiday being declined and that it was not mentioned at that point that we could not agree a payment holiday request if a subsequent charge was held.

Our records show that your previous application was declined upon receipt as we were unable to agree to your request as the funds were to be used to clear outstanding credit card bills. As this is not one of the options we allow for the use of a payment holiday, the application was not processed through the system and therefore the subsequent charge was not flagged up to us.

Based on my findings I am unable to agree to your request for a payment holiday.

Although my response is not perhaps the one that you would have wished for, I assure you that I have taken your complaint seriously and I hope you can understand the reasons for my decision. If I can be of any further help, please contact me on 0845 600 1137.

I have enclosed a leaflet explaining our complaints procedures. Should any of your concerns remain unresolved please let me know what you'd like me to do to put matters right. We are keen to resolve your concerns, if we are unable to do so we'll provide you with details of how you can contact the Financial Ombudsman Service for help. If I don't hear from you in the next eight weeks I will assume you are happy.



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minimike2

I am worried that being an underwriter for the very prodcut you hold that you do not know its own terms and conditions. This doesnt fill me with confidence in placing business with your company.

It clearly states in the booklet that you get when your Halifax mortgage was opened that payment holidays are not available if there is a subsequent charge on the property, and with good reason!! You are effectively increasing the debt on the property, which cannot be done without authority of the second charge holder. Its too messy, too much red tape and rightly is not allowed.

A complaint to the ombusdman / FSA would be a waste of time.

Noz

Seems fair enough really, Halifax have certain criteria for a payment holiday and your mortgage does not fulfil them. Unfortunate but fair.

beecher

I don't see how you have any case against them - as Halifax say in their letter, their Mortgage Offer only states that you are able to apply for a mortgage holiday, not that you will be given one.

silvercar

beecher wrote: »

I don't see how you have any case against them - as Halifax say in their letter, their Mortgage Offer only states that you are able to apply for a mortgage holiday, not that you will be given one.

That's a bit lame, there should be a caveat that states, "don't bother to apply for a mortgage holiday if there is a second charge on the property, as we are not in a position to allow one.

Fair point about a mortgage holiday increasing the debt and this being not allowed without the second charge holders agreement. Is this a universal policy or unique to the Halifax?

UK007BullDog

If i remember correctly most mortgage holidays work where one overpays and can then "live" off this overpayment.

The Payment Holiday is a priviledge, not a right.

Also why do you want a payment holiday? As stated it would increase your debt as the interest would be added to the loan, depending on the LTV on your property when you got the mortgage, the second charge and the fall in the market, you will find that most lenders will not entertain a "holiday" unless you have a serious buffer of overpayments built up.

inch_high

minimike2 wrote: »

I am worried that being an underwriter for the very prodcut you hold that you do not know its own terms and conditions. This doesnt fill me with confidence in placing business with your company.

It clearly states in the booklet that you get when your Halifax mortgage was opened that payment holidays are not available if there is a subsequent charge on the property, and with good reason!! You are effectively increasing the debt on the property, which cannot be done without authority of the second charge holder. Its too messy, too much red tape and rightly is not allowed.

A complaint to the ombusdman / FSA would be a waste of time.

That is the sort of useless response I was not hoping for. I started the thread by saying that I know the reasons for them not wanting to give the holiday - yet you come out with the comment that I dont know our products.

I know about the 2nd charge etc, my whole complaint would not really be that that are not willing to do the payment hol, it would be aimed more at the fact they said I could apply for one, which in my view is misleading.

dunstonh

my whole complaint would not really be that that are not willing to do the payment hol, it would be aimed more at the fact they said I could apply for one, which in my view is misleading.

Why?

It is true that you could apply. You did and you were rejected. An application is not a guarantee of success.

beecher

inch_high wrote: »

That is the sort of useless response I was not hoping for. I started the thread by saying that I know the reasons for them not wanting to give the holiday - yet you come out with the comment that I dont know our products.

I know about the 2nd charge etc, my whole complaint would not really be that that are not willing to do the payment hol, it would be aimed more at the fact they said I could apply for one, which in my view is misleading.

Why did you apply if you already knew that they would reject you though? There are plenty of circumstances in which they would reject an application - I don't think that the Halifax need to list them on the Mortgage offer, particuarly when some of the circumstances might've been okay with them before the 'credit crunch' changed their lending criteria.

inch_high

So as Silvercar said, the offer should say "dont bother applying because we know you have a 2nd charge so youre not having a payment hol" - or at least, not mention any payment holiday at all.

Noz

So if your second charge was to be removed at some point in the future, you would want your right to apply for payment holiday to still be removed?