Delay from Overpayment to Reduction?

Phelpsie001

Afternoon all!!

I have made approx £400 of overpayments this month.

The money leaves my account that instant.....but it doesn't get taken off my mortgage amount until 3 or 4 days later, in which time I have built up interest on the original amount!!

I think that this is so unfair!! Does anyone else have this problem with the Halifax?

philhews

It may well depend on which bank you are transferring from. Some banks make use of the faster payments service which transfers the same day, however some don't, or don't when sending to certain banks in which case the transfer can take approx. 3 days between leaving your account and arriving at the mortgage account. Of course if both accounts are with the same bank then this is irrelevant!

Froggy-G

Hi

There is a delay of 4 to 5 days on the OP's I make, however my mortgage provider will recalculate the interest from the exact day it was received..
Did you speak to your lender to find out how & when tehy calculated interest on your OP's?

Froggy

alfiesmum

The delay works to my advantage in my case. The cheque I send from Lloyds is still earning interest until the day it comes out of the account, but Barclays (woolwich) credit it to my mortgage on the day they receive it in the post. So I'm making money on the overpayment two places at once for a few days.

Phelpsie001

I am transferring from a Halifax account to my Halifax mortgage.... They said that my mortgage still incurrs interest until the amount is deducted and that is their policy!!

They also say that I can't make OPs on t'web, only over the phone.

I just think that it is unfair that they have yet another method of making themselves money?

philhews

Ask them to explain why it takes several days then. Find out what checking/clearing they are feeling the need to do when they hold all the details of both accounts involved. sounds like they are taking the p**s if you ask me, especially if neither of the accounts involved are earning interest on the money for a few days.

Phelpsie001

philhews wrote: »

Ask them to explain why it takes several days then. Find out what checking/clearing they are feeling the need to do when they hold all the details of both accounts involved. sounds like they are taking the p**s if you ask me, especially if neither of the accounts involved are earning interest on the money for a few days.

I am ringing them now!! I'll let you know what they have to say....

Phelpsie001

They said: ''We realise that this is unfair and will be changing our policy within the next few months. The amount you see on the internet is only approximate and is usually £500-£700 out. As our current account and mortgage businesses are run as seperate businesses, the money leaves your account, through the current account business and into the mortgage business.''

So basically ... tough for now. We will change it in the future....

philhews

Phelpsie001 wrote: »

So basically ... tough for now. We will change it in the future....

For which read 'tough, we might change it in the future'!

At least they gave you an answer though, and admitted the unfairness, which is a start.

Phelpsie001

True!! I can't wait for 2014....my fixed deal ENDS!! Then I can look for a different provider!! Had a lot of hassle from Halifax grrr...

GeorgieFTB

Phelpsie

Might sound silly but I think I've minimised the issue (its not gone away tho), any other bank account and you can make the payment on the interwebs, and they seem to manage to clear the payments slightly faster...

Gx