MSE News: Halifax to repay £500m to 300,000 mortgage holders

jazmad

I think we are due some money but not sure how much. We got a two year fixed rate Halifax deal in Jan 07 which expired Jan 09. In mid 2009, we switched to a five year fixed rate (still with Halifax).

I wonder if we will just get the 1% difference for the six months or whether I could get it for the whole period. If just the six months, I might argue that I wouldn't have switched had I known the full position.

1% x 6/12 x £190k = c£950 (very nice)
1% x 2 3/12 x £180k = c£4,000 (even nicer)

Will await the letter with interest!!

jazmad

Just wanted to add for all the people arguing that Halifax can't force existing customers to accept this as a mortgage payment, surely this depends on the deal they have reached with the FSA.

As this is a 'goodwill payment', Halifax I assume will write to people along the lines of "our original T&Cs were potentially confusing. Sorry about this but have £x of your mortgage paid off on us and promise not to sue us and we'll call it evens".

As this is not 'compensation', it seems they can dictate the terms of the offer. They may well choose to give people the option of a cheque, but I would imagine this would be at their discretion.

alibeano

how will money be 'refunded' if the mortgage has since been paid off?

alibeano

alibeano wrote: »

how will money be 'refunded' if the mortgage has since been paid off?

sorry - just saw post above saying helpdesk advise cheques will be issued for closed accounts.

will wait and see what happens...roll on April!

billybraggtastic

So does this only apply to SVP mortgages (and Fixed Rate mortgages on expiry of the Fixed Term)?

I had a Halifax Tracker product from August 07 to Nov 09 (the Tracker Rate was 014% above BoE for this period) but there is no mention of a Cap to the SVP - only that my mortgage will revert to the SVP after 30/11/09.

somi

Just wanna know if i qualify and how much i can expect to recover;

Took a mortgage with with Halifax in May 2007 of £195,500 (£197000 including product fee). Mortgage was fixed at 4.99% till Feb 2009.

From March 2009 was paying 3.50% SVR.

At December 2009 a broker got us off the SVR still with Halifax to a -0.51% Bank base rate that is currently 2.99% mortgage. Mortgage increased to £198,000 due to product fee. We have been on it since which runs out in Jan 2012 and then back to Halifax SVR.

So basically I think we were on Halifax SVR of 3.50% from March 2009 till Nov 2009.

Would appreciate anyone can work it out for us.

lvm

Not sure about the whole product fee thing but £2.5k doesn't make that much of a difference.

Based on 9 months at 3.5% on a mortgage of £197k your goodwill payment would be £197k * 1.0% / 12 * 9 months = £1477.50 (or £1466.25 based on £195.5k mortgage)

Exact amount will vary depending on whether you're on interest only or repayment but will be close to that figure (if you definitely qualify which they're yet to confirm to anyone).

somi

lvm wrote: »

Not sure about the whole product fee thing but £2.5k doesn't make that much of a difference.

Based on 9 months at 3.5% on a mortgage of £197k your goodwill payment would be £197k * 1.0% / 12 * 9 months = £1477.50 (or £1466.25 based on £195.5k mortgage)

Exact amount will vary depending on whether you're on interest only or repayment but will be close to that figure (if you definitely qualify which they're yet to confirm to anyone).

We are on interest only mortgage. Product fee is the extra that we payed for the mortgaged that got added to the mortgage. Thanks for your reply, much appreciated.

flojo169

I originally remortgaged with the HX i March 2003, I then did a product transfer in 2006. I have been on the SVR since February 2009. Can anyone help, wil I be eligable for the little windfalll they are going on about. It oesn't say anywhere about people that did product transfers

macca160670

I can't see the confusion myself the paperwork they sent me clearly states that the svr woulld not go above 2% yet it went to three, the only confusion as I see it is with there customers yet again thinking they can trust these such clever banking people that take massive bonuses off the back of us.

I took out a tracker in November 08 which finished December 08, at the time in fact 24th December 08 I was made redundant so I couldnt have remortaged even if I had wanted too. I automatically transferred to the svr.

Not only have we people been overpaying since October 08 in my case since December 08 but we are still continuing to be overcharged and yet we still have to wait another month to receive a letter and if as sugguested they will only reduce our mortgages by the overpayment even though we made no choice in the first place to overpay, that is very poor in my opinion.

Maybe someone could advise me what my overpayment is likely to be based on a mortage of £103,000.

As someone sugguested the halifax may have caused people to loose there houses and while I appreciate the rates went down, in my case if I hadnt have found another job having to find that unnecesssary money could have caused me to loose my house.

Are the halifax going to pay people the interest on there own money as I have seen no mention of that!!