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

Burridge60

There are really some more worthy causes that could do with compensating their customers. Too many lenders with artificially high SVRs and some that even managed to get FSA approval to abandon a BoE link!

One of those lenders now offers an "options" arrangement to take a tracker now and then switch to a Fixed Rate later on.

Lets just hope they are still lending and don't have another funding crisis!

morgaln

curlygirl1971 wrote: »

I called them and asked if a 'Product Transfer Offer' was the same as a Mortgage Offer and would it be included in the scheme. Obviously the are just giving out generic answers at present rather than answers tailored to individuals. He told me (not quoting word for word here).....that a PTO often meant a change in terms* to the mortgage product and those change in terms if they occured within the correct period could mean that the mortgage is eligible. I asked how each case would be reviewed - does their system spit out people who fit the criteria? No - they have a team manually reviewing each case.


The Lady I spoke to said that if the terms and conditions sent out were 'version 2, 2004' which apparently I was, then my account had a "maker" to be looked at (needless to say she may have added the marker!)

pompeyfaith

Art,

In answer to your question:

http://www.which.co.uk/news/2011/02/halifax-to-pay-out-500m-after-mortgage-confusion-245418/

Extract:

The bank has been in discussion with the Financial Services Authority (FSA) about this issue for at least a year. The FSA has allowed Halifax to continue to charge an SVR of 3.5% and also set out terms under which Halifax can vary the cap in future.

art200380

Opinions 4 u

Not that I have any intention of doing this, but even following settlement, could one of these individual affected customers still take Halifax to court to test this?

The offer letter I have here is exactly the same as the one on the previous page - which states "We can change the 2% limit but, before we do, we will give 30 days notice to customers who pay interest at Halifax Standard Variable Rate, a discounted rate or an added rate and are subject to an early repayment charge. Those customers will then have three months to repay their mortgage if they want to, without having to pay the early repayment charge. This does not apply to customers who pay interest at a fixed, capped, special or tracker rate."

I think the whole point is it's not in black and white, hence this "goodwill gesture" by Halifax. The para, does state that they can increase the 2% limit but only for customers on their SVR, a discounted rate or an added rate and are subject to an early repayment charge. The final sentence states that it does not apply to customers who pay interest at a fixed, capped, special or tracker rate. It is definitely not in black and white.

We took a tracker (BOE base - 0.26%) in August 2007 which expired on 30 November 2009. From 1 December 2009 we have been on their SVR (and do not have to pay a ERC to leave them once on the SVR). I would say that given the above, we are one of the customers that they should not be able to vary the margin on, but obviously did.

Like I said I have no intention of testing this as do not have the time or resources to do so, and will happily accept a cheque for the 1% interest overpayment I have made, but would love for someone to actually test this in court on an individual basis.

hcb42

i have had five year fixed rate, and only came off it for last payment, and am now going to remortgage elsewhere from next month or month after, so no windfall here, ah well, nice thread

jet77

Hi,

Can anyone help me out trying to figure out whether this applies to me?

I took out a tracker with Halifax in July 2005 on a mortgage of £92k and then in April 2007 changed it to a consent to lease (still on tracker) - I've still got the mortgage now.

Thanks,

J

curlygirl1971

morgaln wrote: »

The Lady I spoke to said that if the terms and conditions sent out were 'version 2, 2004' which apparently I was, then my account had a "maker" to be looked at (needless to say she may have added the marker!)

Well I can't find a copy of V2 2004, however I do have a 'Product Transfer Acceptance' with my name and roll number on it...

'I confirm that I have received, read and understood the Product Transfer Offer issued on 3rd Dec '05. I acknowledge receipt of a copy of ....Mortgage Conditions 2004 (2nd Ed)'

It's marked customer copy across the sig field - the Halifax must have the one with my sig on it

curlygirl1971

jet77 wrote: »

Hi,

Can anyone help me out trying to figure out whether this applies to me?

I took out a tracker with Halifax in July 2005 on a mortgage of £92k and then in April 2007 changed it to a consent to lease (still on tracker) - I've still got the mortgage now.

Hi

It only applies to those that have been on the Halifax's SVR at some point from January 2009 to date.

johnpac

Im pretty sure this applies to me.
2 year fixed rate taken out in Sept 2006.
Ended Sept 2008. Then went on SVR until Aug 2009.
Guess that means im owed somthing back for the Jan-Aug 2009 period?.

Another question is will I be due a rebate for the overpayment i will have made on my Halifax TMPP Policy (Total Mortgage Protection Plan). This policy covers sickness, redundancy, critical illness etc. From what i remember this pays somthing like 125% of my mortgage payment per month.
As i have been paying more mortgage then i should of been, i have also technically been paying more Halifax TMPP than i should. As the ammount i pay in TMPP slides with the mortage payment value.

I prob wont ammount to much, but im sure they should be refunding this too ???......

Opinions appreciated.

getmore4less

I think the whole point is it's not in black and white, hence this "goodwill gesture" by Halifax. The para, does state that they can increase the 2% limit but only for customers on their SVR, a discounted rate or an added rate and are subject to an early repayment charge. The final sentence states that it does not apply to customers who pay interest at a fixed, capped, special or tracker rate. It is definitely not in black and white.

AIUI this is an extra term is in the offer letter, any other T&C that refers to the SVR.

It seems to me they messed up the puntuation.

what they ment to say, was something like

"We can change the 2% limit but, before we do, we will give 30 days notice.

Customers who pay interest at Halifax Standard Variable Rate, a discounted rate or an added rate and are subject to an early repayment charge, those customers will then have three months to repay their mortgage if they want to, without having to pay the early repayment charge. This does not apply to customers who pay interest at a fixed, capped, special or tracker rate."

So those affected by the change immediately and had ERC could get out ofthe ERC without paying.

Of course this did not cover those that were about to exit a fixed rate onto SVR in the next 3 months.

I think if you want the exclusion to apply to both previous sentences then you are falling back on any any other SVR T&C's, in the general T&C or offer letter.

THe problem for Llods and those halifax deals is that a lot of people will now be going through the T&C and offers looking for issues like this and I guess a few more might be uncovered.