Long term overpayments not applied

TiminSurrey

Visited the Halifax yesterday to enquire about making a lump sum overpayment on our mortgage. During the conversation it came out that the regular overpayments that we have been making for the last few years have not been used by the Halifax to reduce the amount outstanding. We hadn't understood or appreciated this because we have a part endowment/part repayment mortgage, so the total was reducing. Regardless of this, the line from the advisor was "you didn't tell us what you wanted to do with the overpayment, so it's just been sat there". Although my initial reaction was "Brilliant! Over £6k to further reduce the mortgage", thinking about it more I'm pretty cross; Halifax happily took our instruction to make a £200 overpayment each month but didn't tell us that we had to tell them what to do with that money. I can't think that we ignored such a comment! I think that Halifax owe us either the interest that we would not have paid had the overpayments been applied, or interest on that money that we could have made in a savings account.

What does the forum think? Am I at fault because I didn't make it clear what I wanted the overpayment to be used for, or do I have a case to take to the Halifax?

BobQ

When you say its just sitting there what do you mean?
Did they credit the money to you endowment account ? Or your repayment account? Or just put it into another account?

I did a similar thing with C&G and they asked me if I wanted to reduce the interest payments on the endowment or reduce the term of the repayment account.

The_J

There is no way it could have just been "sitting" there. They are BSing you.

Definitely ask if the interest has been reduced for the time the money has been sitting there. If not, tell them to sort it out and do it.