Halifax changes mortgage accounts

Butterfly_Brain

Halifax has sent out letters saying that from later this year if you pay more than £250 pm off of your mortgage account, the interest will still be payable, not deducted from the account total from the end of the year :mad:

opinions4u

Here's a link to the information.

http://www.halifax.co.uk/mortgages/help-and-advice/existing-customers/how-we-manage-your-mortgage/

Here's what it says:

9. My mortgage is calculated on an annual interest basis. Will this change?
No, your mortgage will still be calculated in the same way.
If you're on an annual interest calculation and you make overpayments of £250 or more a month you currently receive credit interest (provided you also pay your normal monthly payments throughout the year).
You won't get this after the change as this concession is being removed. As an alternative option, you'll be able to change over to a daily interest calculation method.
Annual interest is calculated by charging you interest on the amount of mortgage outstanding after we have added your interest charges. It is added on the same date, each year. This means that although your mortgage balance may reduce throughout the year, the balance on which interest is charged will not change until your mortgage account year starts again.
Daily interest is calculated by charging interest on the amount of mortgage outstanding on a day to day basis. This means we take into account any changes to your mortgage balance at the end of each day.
You may prefer to move to a daily interest calculation method. You can do this as soon as you'd like and still retain your existing mortgage product. Call us on 0800 068 9564 (lines are open Monday to Friday 8am to 8pm and Saturday 9am to 4pm) and we can arrange this for you.

Most Halifax mortgages are on daily interest calculation so aren't affected by the change. A small minority of older (pre 2001 I think) mortgages may still be on annual interest.

They can change to daily interest if they want. They would be better off doing so.

It's pretty straight forwards what to do.

Dave_Ham

Change to daily interest - absolute no brainer and the telephone number to boot..

Good luck

opinions4u

Dave_Ham wrote: »

Change to daily interest - absolute no brainer and the telephone number to boot..

Good luck

Freephone number at that!