Halifax Mortgage Overpayments

MortgageFreeWanabe

Hi all, very new to the forum in fact this is my first post. I have a mortgage with 21 years left. I want to start making overpayments of £200 p/m as this should bring the term down to just 10years!

I have just registered so that I can access my mortgage online, I have the account number and sort code and would like to set up a standing order.

My question is that.. How can I be sure that the payments I make will come off the term and NOT reduce the monthly payments?

Hope someone can help ?

Thanks for reading,

danlojo

Before you set that up check with them.

I'm with HSBC and I was going to do exactly as you but when I contacted them they told me that I would have been charged for doing it that way.

They have now set my overpayment up and I can cancel anytime by phoning them up.

Maybe Halifax are different but I would check first,

HTH

MortgageFreeWanabe

Great advice, thank you. I will call them tommorrow,

Thanks again,

Dumyat

I overpay my Halifax mortgage and it does reduce the balance not the monthly payments, but I would advise you check with them.
I pay by standing order, but they do not let me adjust it online. I have to speak to their mortgage department any time I want to vary the amount. Not sure if that is the same for all their mortgage products, or if it is because we have a Leeds building society account which the Halifax took over,

MortgageFreeWanabe

Dumyat wrote: »

I overpay my Halifax mortgage and it does reduce the balance not the monthly payments, but I would advise you check with them.
I pay by standing order, but they do not let me adjust it online. I have to speak to their mortgage department any time I want to vary the amount. Not sure if that is the same for all their mortgage products, or if it is because we have a Leeds building society account which the Halifax took over,

Hi Thanks for the reply,

I phoned the Halifax this morning and they said I can overpay using the mortgage account details by setting up a standing order from my natwest bank account.

They said the money wiill come off the balance but I need to ring them as and when I want them to recalculate the mortage term for me.

As I have just set up a standing order of £225p/m I guess my MFW date is now 10 Years from now rather than 21 Years!!

Have a great day everyone.

curlygirl1971

Thanks for posting that info MortgageFreeWanabe - I have a Halifax Mortgage too and also a NW CA. Like Dumyat I've never been able to arrange online payment from my Halifax CA to my Halifax Mortgage - it has driven me insane over the last year. In this day and age.....it's ridiculous! But I will try setting up SO from my NW CA instead and then I can avoid the palavar of ringing up/going into branch

I've been OP'ing my Halifax mortgage for just over a year now and they only ever reduce the payments when I ask them too - otherwise they reduce the term.

Every now and again, however, I do ask them to reduce the payments. I have a TMPP with them, the premium of which is linked directly to the value of my Standard Mortgage Payment. So if my SMP goes down so does the TMPP payment (only by £1 or so). I still pay the same as I just increase my OP amount by the difference and then add on the saving on the TMPP payment......every penny counts!

hastie

Can i suggest you leave the term where it is and just keep upping your overpayment in line with your circumstances.
As they reduce the monthly payment required; over time, this will allow you to pay less per month if finances are squeezed.

Usually banks only recalculate your monthly payment once per year.

If you formally take the term down, you may pay to extend it again if you hit problems

Good luck with your mortgage free journey:)

alexlyne

Halifax will allow future underpayments equal to any overpayments - well it's what I was told. So if times are tough you can stop paying.. of course this will then increase your term again, but it means for me it's better having the money in the mortgage reducing interest than the 0% it gains in a current account.

Dumyat

Thank you Curlygirl1971, I have often wondered if it is our mortgage which is the problem (ex Leeds BS). I have felt over the years the Halifax have not made it easy to make overpayments. I have occasionally stopped a payment using phone banking in a month where funds have been tight, but changing the amount of the payment has always meant speaking to someone from the mortgage office.

pammyj74

I'm with halifax too and just OP from my lloyds tsb ac as and when I want rather than setting up an SO so if one month I cant afford it or can afford more its flexible.
I have decided to reduce the term every so often as its more a mental thing in my mind that its going down. They have told me I can extend it again if I ever need to.

CathT

I'm with Halifax too and pay varying OP's from my Barclays account. I can change the amount and date to suit. I just rang Halifax to check my balance was reducing and not the term and to keep my monthly payment fixed. I can keep an eye on it using my spreadsheet.