Halifax Interest Only mortgage letters

kevinm75

A longer term probably won't be an option then. The flexible payments are a good idea but won't they bank think its odd if we just start making extra payments? or just pleased to get the money?

jamesd

It's quite common for people to pay more than they have to. They won't think it's odd.

kevinm75

ok, is it a straight forward case of setting up a standing order? i've got there sort code acc no and my mortgage number. Can you make any payments or does it have to regular monthly payments?

Jimbo1976

As jamesd has said BoS will be pleased to receive the payments and won't ask why you are making them. Each lender tends to be slightly different, so you should give them a call to ask how to make lump sum reductions. You can make them irregularly or regularly. BoS will probably have a minimum amount for lump sums paid off (£1000 ish)

Railman

Any ideas as to the likely admin fee the Halifax would charge to move from an interest only basis to a repayment basis (if it was them who were instigating the move). Since its not a new mortgage, just a repayment basis change, I assume it'll be zero or very small?

Jimbo1976

Good question Railman I've been unable to find the answer after a quick look at Halifax's web site and its intermediary web site so I think you need to give them a call.

Railman

Unfortunately the Halifax "lady on the phone" has no idea either. Simply said it wasn't in the list of standard fees she'd been given!

Jimbo1976

Which number did you call? This is the one next to the fees page on the Halifax web site

08458 50 37 05

Railman

Actually I called their IO morgage team. This is the group they've tasked to look into the issue of interest only repayment plans. I have to say they seem fairly ill informed given that their aim is to transfer as many customers as possible onto a repayment basis!

I can't see how they could justify anything more then a token admin fee, if any at all, as the change is being driven by them and ultimately acts in their favour. It's not like they will be doing any checks or assessments etc.. all that's happening is that the monthly standing order is being adjusted.

opinions4u

If I've read their web site correctly, they don't charge a fee for changing repayment type.

http://www.halifax.co.uk/mortgages/mortgagefees.asp