Halifax Payment Plan / A&L Switch

20vt-rs

I currently have a halifax current account and a halifax mortgage. I pay my mortgage via the halifax payment plan (not d/d). I am considering moving to the A&L premier account to get the £100 cash back, the new halifax charges are pointing me this way. However I am unsure if the halifax payment plan payment I use for the mortgage will convert into a direct debit or standing order when I move? Anyone else done this and can confirm?
Thanks.

jambosans

HPP is a special internal standing order that will attempt payment for up to 7 days (in a row). This is facilitated by your mortgage being within the same bank. As far as I am aware, an equivalent is not available if you bank out-with HBOS, however they should be able to setup a Direct Debit, or perhaps let you setup a standing order from A&L (this would not be an HPP however). I could be way off as my knowledge on mortgages is limited.

opinions4u

It's a cracking question.

As jambosans says the HPP basically attempts to collect payment for 7 consecutive days and, as long as it succeeds, you don't get charged by either the mortgage account or current account.

A direct debit will try one the due date and also 7 days later. If the first one fails you will get whatever bank charges apply at your bank AND a charge for the mortgage.

I genuinely haven't got a clue how this would work if your transferred it to a new current account. Logic tells me that it should go as a direct debit, but I would suggest you check regularly that A&L pick this up with your account transfer. Or move this particular payment yourself - you just need to tell Halifax the new sort code/account number and fund the A&L account in time.

Again, if you are going to be charged £1 daily fees as a result of the new charging structure, one option to change this would be to ask Halifax to move your mortgage payment from the start of the month to the end of the month.

If this puts you in to a position where you are never going to use the overdraft, or be overdrawn for 5 days or less (earning the £5 Reward to cover the bill) then it may save you the hassle of a switch.

Post 63 in this linky outlines some of the differences in A&L service when compared to Halifax. Some of them are minor, some of them are irritating, some of them may naff you off royally! They do have that worrying Santander label hanging over them!

Hope that helps.

20vt-rs

Thanks for the replies guys, have just been speaking to Halifax and the HPP is in fact treated as a direct debit, it's just their internal description of this. So moving accounts will be ok to move to a D/D payment from another bank... Just need to make sure A&L is a good way to go over Halifax...

Edit - For info, once the accounts are up and moved over, I then need to instruct halifax to move mortgate to a D/D from HPP with the new bank account.