Making Halifax mortgage overpayments online?

sinar

Hi,

I’ve spent the last four years paying off all my loans and credit cards, and am now ready to work towards paying my mortgage off, I owe £3,800, the mortgage has 6 years to run, and I hope to pay it off in a year.

I want to pay weekly overpayments, online, via my First Direct bank account, I aim to pay around £100 a week off, sometimes it might be less, and sometimes more if I happen to get some overtime in.

I went into my local Halifax today (where my original mortgage was arranged) to discuss the overpayments, explaining what I wanted to do.

I was told that I could not make overpayments like that, and I’d have to phone up the number on my annual mortgage statement, and arrange to have my monthly payment increased. I explained that would not be a suitable option for me as I could not guarantee that I would could pay a certain amount a month, and I just wanted to make overpayments as and when I could afford it.

I was then told I would have to set up a standing order for the overpayments, and that I’d have to change the standing order when I wanted to make a different payment.

I then explained (again) that ideally I’d like to make overpayments as and when I was able to, with no set amount, ideally online, from my bank, First Direct.

The assistant then went away and came back with some information scribbled on a bit of paper and said this was the information i needed to make overpayments online.

I was left feeling a little bit unconfident in the advice i was given.

I was wondering if anyone could confirm it is OK to make overpayments online? as I would hate to make an overpayment using the information I was given, for it only to go astray, as it is not a facility they offer.

The information i was given was in form of a sort code (xx-xx-xx) and an account number (xxxxxxxx), and I was told to put my Mortgage roll number in as well. Does that sound about right?

Thanks for reading

Julie

CathT

Hi Julie, I have a Halifax mortgage and as long as you make overpayments from a non-halifax account they go through fine. I set up a standing order using the details you mentionned and I just amend the date and amount as I need to.

I just rang up after the first OP to make sure my term reduced instead of the amount but only needed to do it that one time.

Hope this helps.

sinar

CathT wrote: »

Hi Julie, I have a Halifax mortgage and as long as you make overpayments from a non-halifax account they go through fine. I set up a standing order using the details you mentionned and I just amend the date and amount as I need to.

I just rang up after the first OP to make sure my term reduced instead of the amount but only needed to do it that one time.

Hope this helps.

Thanks, I've just made a small test payment, I'll wait and see if it goes through OK, then start putting every spare penny into getting this thing paid off.

CathT

Can you view your mortgage online? Halifax don't update it very well so you will have to ring. Just make sure they don't reduce your payments. You'll soon be mortgage free!

Might be wise to check any early repayment penalties that might be on your mortgage aswell.

sinar

CathT wrote: »

Can you view your mortgage online? Halifax don't update it very well so you will have to ring. Just make sure they don't reduce your payments. You'll soon be mortgage free!

Might be wise to check any early repayment penalties that might be on your mortgage aswell.

Thanks, I can view my mortgage balance online, I was hoping it would be updated as soon as they got the payment so I could see it was going through ok, might this not be the case? is there any particular number I would have to call to check it has gone through, or could they check if I go in a branch?

I have only just had my yearly statement, and I think the amount I pay stays the same for the year (unless interest rates change) so I assume I don't have to contact them to ask them not to reduce my payments as I hope to have it all paid off before my next yearly statement?

I don't think there are any early repayment penalties, I've had the same mortgage for 19 years, just a basic repayment one with no special offers.

teapot2

We have a Halifax mortgage and I haven't over paid online as wasn't sure we could although there have been recent changes since Lloyds got involved. We usually just go into the branch to overpay.

We can look at the mortgage balance online and certainly when we overpay or our regular mortgage amount comes out, the balance doesn't change online until the next day. The balance also goes up sometimes when they add on interest :eek::eek::(

You can ring them about your mortgage on 08451205557 however any important info I'd get them to confirm in writing as we found different people tell you different amounts on the phone!

CathT

I would ring and check overpayment has come off the balance and also to keep your normal monthly repayments the same. I sent an OP of £3000 a few years ago and they reduced my mortgage payments. The online balance is only really reliable just after normal mortgage goes out. From then it sometimes goes up when I send overpayments but I use a spreadsheet aswell to track them.

pammyj74

I OP to Halifax online as and when I like. I havent got a standing order set up I think its set up as a transfer. I just send money over when I like. Its annoying that the mortgage isnt updated online like bank accounts are but I think after a few days the OP comes off (it never did before) I OPd £300 yesterday and just checked and it has come off already.
Its daft that you cant OP from a halifax bank account though. I do it from my lloyds account.

sinar

pammyj74 wrote: »

I OP to Halifax online as and when I like. I havent got a standing order set up I think its set up as a transfer. I just send money over when I like. Its annoying that the mortgage isnt updated online like bank accounts are but I think after a few days the OP comes off (it never did before) I OPd £300 yesterday and just checked and it has come off already.
Its daft that you cant OP from a halifax bank account though. I do it from my lloyds account.

Thanks, I've Just checked online and found that the small payment of £30 i made yesterday has been paid off my total, just going to make my first £100 payment now, it will be great watching the balance fall every week!

curlygirl1971

I also have a Halifax mortgage (and Halifax CA). My OP is managed by a regular fixed amount as a Standing Order and then anything more is done over the counter. It really bugs me that I can't do internal transfers between the accounts.

Halifax mortgages are subject to daily interest, however they only apply the interest charges to the outstanding balance once a month and also when you make a payment. So my regular payment hits the account on 1st and interest for the previous month is also applied. If I make an OP on the 15th then it deducts the OP and adds the interest for the 1st to the 15th. On the next 1st it adds the interest from the 16th to the 31st. If I make an OP that is smaller than the interest incurred to that point then the net effect is an increase in the visible balance.

james3333

im really confused with this :
if i make overpayments, the amount still owing goes up!
can any one explain why ( in easy terms)