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

edited 30 November -1 at 1:00AM in Mortgages & Endowments
557 replies 99.7K views
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  • curlygirl1971curlygirl1971 Forumite
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    I think you need to double check your paperwork and see what interest rates have been applied

    But basically if you have been on the SVR you should have been paying

    Upto Dec 08 / Jan 09..........BOE plus 2%,
    thereafter.............BOE plus 3%

    The Halifax's announcement is in regard to the increase from 2% to 3%......so a 1% increase is in question
  • Pete111Pete111 Forumite
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    joanne8879 wrote: »
    hi all. We took out our mortgage for £193,500 in June 2007 at a fixed rate of 5.19. We then went onto SVR in October 2009 until now so would we be affected?
    Can you have a payment to your bank rather than off the mortgage!!!:o
    advice appreciated!


    I am in a very similar boat as I was on a 2 year fixed 5.19 halifax deal that we took out Mid 2007 and which expired in Sept 2009.

    My take on this is that I am owed some money back even though we moved onto a First direct Mortgage in December 09 - this looks to be about £250ish as we were only on the SVR for 2.5 months

    However, if you have remained on the SVR since Oct 09 then you could be in for a very decent windfall - basically 1% of your interest for each month you have been on the SVR. I make that £160 ish per month since Oct 2009 given your figures above - so upwards of 2.5k.

    Can someone tell me/us if that seems correct?
    Go round the green binbags. Turn right at the mouldy George Elliot, forward, forward, and turn left....at the dead badger
  • curlygirl1971curlygirl1971 Forumite
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    I'm not getting my hopes up by expecting 1% back

    The Halifax statement says 'Some affected customers will receive a goodwill payment'. It doesn't say 'Refund'

    According to the BBC report 'The Halifax will make payments to 300,000 mortgage customers, up to a £500m total', so in otherwords on average £1666.66 per customer

    I don't think mine will be anything like that amount - but I do have a relatively small mortgage
  • I've just checked my paperwork and we moved onto SVR august 2008 and have been paying that ever since so by my reckoning that is 1% over for the entire period in question. I do hope it is a reimbursement rather than a goodwill payment!
  • bigstevexbigstevex Forumite
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    Our mortgage is complicated as it's a staff one taken out in may 07

    we've had 100k on a 10 year fix

    and the other 60k tracked the boe rate, when my partner left halifax it reverted to the svr of 3.5% in october 2009, I presume from october 2009 we were being overcharged as it should have been 2.5%


    Secondly does this mean anyone currently on the SVR with a pre sept 2007 mortgage will get a 1% reduction in what they are currently paying?
  • bigstevexbigstevex Forumite
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    41123a wrote: »
    I've just checked my paperwork and we moved onto SVR august 2008 and have been paying that ever since so by my reckoning that is 1% over for the entire period in question. I do hope it is a reimbursement rather than a goodwill payment!


    It's definitely going to be a one off payment off your mortgage account unless your mortgage is no longer with them.


    Edit, should be more specific.... it says everywhere this is the case, technically wrong as we didn't intentionally want to overpay the mortgage but if you think about it halifax don't actually lose the money because most of it will come back to them if that makes sense!
  • lvmlvm Forumite
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    41123a wrote: »
    I think I might be affected as I have a mortgage with Halifax taken out in 2006 which reverted to SVR about 2.5 years ago.

    I'm actually about to move to another mortgage supplier so not sure how I'll be reimbursed as I suspect this move will be complete before April 2011 when they claim they will start this process.

    Any ideas?

    This won't affect your compensation - you'll get the exact same as if you were staying a Halifax customer (although maybe not for the last month or so if you move before the last day payment is due).
    Mortgage Free Journey!
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    Current Values - £1,150,000
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  • lvmlvm Forumite
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    This is the best news I've had all year!

    So, I'm on an interest only mortgage (paying about £11 extra a month) with a current balance of about £65, 000. Mortgage started in August 2006 with 2 year fixed rate.

    So...my calculations are as follows:

    What I have paid in interest over 27 months from Jan 09 to Mar 11 = 65000*3.5% / 12 * 27 = £5118.75

    What I should have paid = 65000*2.5% / 12 * 27 = £3565.25

    Giving me "compensation"/"goodwill" (or whatever they want to call it!) of £1553.50.

    I'm just guessing that it's over 27 months - take it the goodwill will be from Jan 09 to Mar 11?

    This will reduce my balance by about £60 a year...before I start making my repayment payments!

    WOO HOO!!!
    Mortgage Free Journey!
    Total Purchase Prices - £1,031,000
    Current Values - £1,150,000
    Mortgage(s) March 2019 - £708,102
    Aim for March 2020 - £695,000
    Aim for March 2021 - £680,000
  • Ill state this again the Halifax have absolutely no right to credit the redress to you mortgage unless it is in arrears and then they can only credit the arrears amount.

    This is your money not there's that they unfairly took from you to shied themselves from the effects of the session and possibly a negative interest rate.

    They are doing this to protect themselves not from the goodness of there heart.

    This money was unfairly taken and that can open a whole can of worms hence why they are keen to bring this to a close.

    Indeed you are all be denied that money so statutory interest should be applied also.
  • Mr_Falling_StarMr_Falling_Star Forumite
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    This looks pretty positive. I took out a 2 year fixed rate mortgage in July 2006 so I was on the SVR by Jan 2009 and have been paying like a good'un ever since (even paying back 18k early)

    I don't know how much it will be but it seems pretty positive :)
    The World come on.....
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