Confused - Halifax SVR change

clueless1682

Hi folks

Hopefully someone can explain this as I'm baffled. Received my letter from Halifax today about my mortgage and about the SVR changing and what my new payment will be from May.
Now I'm currently on a 2 yr tracker until Dec this year. Since BOE rate hasn't changed, I didn't expect my payments to be affected. However, my payments are DECREASING by £25. I'm really not complaining and quite frankly delighted, but I dont understand how I'm paying less when my current interest rate hasn't actually changed??
Anyone explain?

Thanks!

rothchick

Your balance must have come down since your payment was last calculated. Have you made any overpayments or have you had a goodwill payment awarded to you when the svr cap changed?

clueless1682

I've been making small overpayments each month but thats only been over the past 11-12 months so wouldn't have thought its made too big a dent, certainly not enough to reduce the monthly DD. So it looks like they've recalculated based on the overpayments?
The reduction is going to go straight back into the overpayments anyway so all good in my opinion!

Thanks :j:j

Thrugelmir

[QUOTE=clueless1682;52511259
Now I'm currently on a 2 yr tracker until Dec this year. [/QUOTE]

Then unless you exit the product you are currently on, you will not be affected until later in the year.

KTF

The Halifax computer doesnt cope with overpayments very well. I switched to a standing order for this reason as they kept sending me letters every month saying my monthly payment has reduced which was causing no end of hassle.

If you are overpaying a fixed amount each month then this might be worth considering.

As above, the change in SVR wont have any effect until you come to the end of your current deal.