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

opinions4u

For clarity, this only applies to Halifax branded mortgages. Not TMB, IF, BM etc.

lvm

Just a little question for all you mortgage experts out there!

Why are Halifax not calculating the goodwill payment from Oct 2008 if this is when interest went to 3% above BoE base rate? Why is it only from January it's being calculated?

Thanks x

curlygirl1971

According to BBC News (website) updated tonight "....Halifax said that some customers would receive a flat-rate payment of £250.
Others will receive a variable payment, related to the rise in their interest payment and the size of their mortgages. This could range from hundreds of pounds to several thousand pounds."

It doesn't qualify it any further - or say why some would get a flat £250. Perhaps they're paying out a minimum? We are just going to have to wait for further information/our letters in April!

pompeyfaith

Not sure but I'm going to look for the answer, maybe it is because that is the agreement reached with the FSA and FOS

pompeyfaith

It doesn't qualify it any further - or say why some would get a flat £250. Perhaps they're paying out a minimum? We are just going to have to wait for further information/our letters in April!

I am of the understanding that it relates to the mortgage exit fee.

Yes as I thought from Martins article

http://www.moneysavingexpert.com/news/mortgages/2011/02/halifax-to-repay-500-million-to-300000-mortgage-holders

Some Halifax mortgage holders on the SVR will be tied in (meaning they must pay a penalty to leave). These customers would have been told about the removal of the cap, the bank stresses. Nevertheless, they will receive a "goodwill" payment of £250.

pammyj74

grr am gutted as took mine out on feb 08 and went to svr in feb 10 so the early date is past the 2007 date by a few months

curlygirl1971

pompeyfaith wrote: »

I am of the understanding that it relates to the mortgage exit fee.

Yes as I thought from Martins article

Aaah - I'd not read the article since this lunchtime and it must have been updated. So thats good to know - thanks

PammyJ74....gutted for you! I Know how hard you work at reducing your mortgage

I've checked all my paperwork tonight - As I was an existing Halifax Mortgage customer whose rate was coming to an end, I have a 'Product Transfer offer' dated December 05 - am not sure if this will be treated in the same way as a Mortgage Offer. It does say that the mortgage (I was being offered) "is governed by the mortgage conditions we have sent (the new mortgage conditions) instead of the mortgage conditions that currently apply (the old mortgage conditions)". The 'new' conditions talk about the Cap but it does say "we can change the 2% limit, but before we do, we will give 30 days notice to customers on SVR..."

I still had the mortgage at Jan 09 and from April 09 I've been on SVR.

I have two options. I can calmly wait and see. Or I can obsess and fluctuate between giddy and despairing for the next few weeks until letters are sent out

Paulgonnabedebtfree

pompeyfaith wrote: »

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.

It will be interesting to see how customers are treated if they went into arrears during this period - especially if the extra 1% caused it. The charges for veing in arrears can end up being quite substantial. Even worse, I wonder if anyone had their home repossessed and/or their lives ruined due to being a bit short on the mortgage repayments for a while. Compensation for something like that should run into big money IMO. It won't though as they usually wriggle out of coughing up for collateral damage.

getmore4less

There seems to be some confusion by some posters.


The SVR rate is not the issue here.

The issue is the T&C of your mortgage and specificaly that the 2% cap could change so was not a 2% cap and the wording surounding this and notification.

It appears not all borroweres thought they were correctly notified when the "cap" changed from 2% to 3%

So it looks like a lot of people are in for a windwall due to a notification error of a legitimate change in rate.


Would be usefull if someone with a mortgage in the effected range could dig out the relevent section from the T&C and the offer(need both) to help understand what was actualy in the T&C's of those loans.

alexlyne

I have what would seem to be all the relevant prerequisites : fix in 2005, came off last year onto 3.5% SVR. Though my mortgage is direct with the Halifax, and not originally through BOS, so I doubt I'll get anything. Would only be a few quid anyways.