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Question about Halifax overpayment

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I'm a bit confused and could do with someone in the know telling me if I'm right or wrong.


We've got a fixed rate (for two years) perfectly standard mortgage with the Halifax. We've been overpaying on our mortgage, not much but it's enough to have reduced the monthly payments. Being a good MFW I went into the Halifax and asked them to reduce the term rather than the monthly repayments. This was what I understood you were to do.

Bu the man at the Halifax told me that you can't do that. If you overpay it reduces the monthly payment rather than the term, they won't reduce the term with overpayment. I could go in every so often and get them to change the term for me but I'd be charged £10 each time.

I talked to my friends about this and they said it was perfectly standard practice with every mortgage provider unless you have a flexible mortgage! Is Halifax just rubbish or have I got completely the wrong end of the stick of what you're supposed to do when you over pay?

Thanks
Comping, freebieing and trying to pay the mortgage off early!

Comments

  • regularsaver1
    regularsaver1 Posts: 4,930 Forumite
    no - it is write - you can change your term but they have just introduced in the last month the £10 fee

    you have to stipulate what term you want and then they will do this for you

    by overpaying - as the mortgage is daily interest then this will come off the capital, and therefore monthlyt payment - unless you ask and state what term you want - but the fee now applies
  • sturgeon62
    sturgeon62 Posts: 150 Forumite
    Part of the Furniture
    I'm with the Halifax and have just started to overpay, done this three times now, when I rang first to see how much I could overpay by, 10%, I was asked if I wanted it off the term or monthly payments I said the term and was told that was ok but when I go into the branch to make the overpayment be sure to tell the counter clerk that I want " off the balance of the mortgage". So when I made the first one I said this to the man and he gave me a receipt but the receipt doesn't state this so I went to the enquiries point, the girl said he hadn't stipulated what I had asked for and made him redo the op, she said she made a reference on my mortgage notes to say all op's were off the term, and as a double measure whenever I make future op's just to tell the clerk it is a " PTRA" which means it goes through as off the balance.
  • regularsaver1
    regularsaver1 Posts: 4,930 Forumite
    PRTA - means part-repayment to loan A (original mortgage) - it would be PRTD if further advance (loan D) - this would come of balance - but would not make any changes to term or payments without instructions

    When a customer overpays the mortgage does not update until over night - so that is why a form is filled in with instructions - to send to business centre. the branch mortgage reviewer can make the changes - but only the next day after

    do not ask the cashiers, just give instructions - they do not deal with mortgages
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