Halifax web balance never adds up

ryanh_2

Hi, I have a Halifax mortgage for which I regulalrly make over payments. The balance on the internet banking never reflects the regular or over-payments fully, i.e if I make an over payment of 1000, the balance is reduced by 800. My regular payments reduce the balance by about 2/3rds of the amount I actually pay.

Interest is calculated daily, added yearly, so I really don't understand why during the year the balance isn't simply 'outstanding - payments'. Where is my money going?

I called Halifax and was told "you can never really trust the internet balance".

Can anyone shed any light on this?

Thanks



Ryan

opinions4u

As I understand things, the mortgage balance on internet banking calculates interest up to the end of the calendar month and assumes no further payments will be made within that month.

It doesn't include any ERCs.

I can't explain why a £1,000 overpayment would only reduce the balance by £800 though - unless you're checking the figure either side of a month end.

beecher2

Check the figures after the next payment date and it should add up. If your interest is usually added to your online account on the 31st of the month and you make your overpayment on the 15th, you'll find that they take off interest for the period 1- 15th when you make your overpayment. This means that when the 31st of the month rolls round again, you'll have less interest applied than normal. I hope that makes sense!