Halifax overpayments - balance does not reflect overpayment

Ibliss

Made a couple of one-off overpayments in the last couple of days from my HSBC current account to my Halifax mortgage. However the balance change on the mortgage does not reflect the amount of the payments.

A new mortgage, have had the first payment on the mortgage and had some spare savings so decided to overpay.

1st payment of £250 resulted in a reduction of £208.54 from the mortgage balance, and a 2nd payment of £1800 reduced the balance by £1791.74.

Where would the £41.46 and £8.26 have gone?

foreversummer

I'm sure someone far more knowledgeable than me will come along to answer this, but my mortgage balance changes throughout the month. I think it is something to do with the way the interest is charged.

But I don't think you have anything to worry about. An overpayment is a overpayment and the full amount will have been applied to your account.

Foreversummer

Meeper

I will counter your original question with a question of my own.....

Why don't you ask Halifax?

Ibliss

Why don't I ask Halifax? I have, emailed my mortgage advisor but I know they are off on Thursdays (which coincidently always seems to be the day I need answers from them!).

My last attempt to phone the mortgage helpline resulted in being kept on hold for a long time before being transferred to about 4 different people (all wrong) before ending up at the initial phone options menu.

I am also stuck at work from 9am to 7:30 each day at the moment.

And the forum is such a helpful place, usually.

opinions4u

If it really worries you, ring them. Everything will be fine though.

If you're checking it against the balance held within online banking it does strange things with the way it displays daily interest and recent payments. It takes no account of same day payments.

Don't lose sleep over it. I'm guessing one payment was over month end.

somethingcorporate

Indeed, it would be to do with the way they calculate and apply the daily interest. I can never get the OPs (or even the basic interest) to tally back precisely. You won't have lost the money though (one hopes ).

staffie1

I overpaid my Halifax mortgage the other day, and the balance went UP! Interest is calculated daily but applied to the balance on the last day of the month, so I can't understand it. I'm not worried about it, because as foreversummer says it will reduce the balance, but I just don't understand it.

rothchick

Whatever you do, don't compare and look at your balance online! its not correct and not updated daily - plus lots of incorrect details recently due to the system upgrade. Interest is added daily but you can only get this information and correct balance by calling Halifax directly. They are open from 8am.

If you ring on the right phone line and chose the right option you will get through to someone who can help- hopefully

fashionprincess

This definately sounds like a daily interest issue. The most effective way to compare your balance is over the phone and on the same day each month to get a true reflection.

With daily interest, your balance is at its highest point the day before a payment is made. This payment will then account for the month's interest plus some capital (assuming your mortgage is on a repayment basis).

Anything over your contracted payments WILL automatically come off the capital you owe.

As someone mentioned previously the online system isn't brilliant at the best of time for halifax mortgages as the balance doesn't regularly update.

Ta.

skaps

I have noticed this same problem. I will be getting my paper statement next week so I am going to double check and then phone them if Im still confused.