Mortgage overpayments cancelled

Freebiehunter1980

Hello,
Can anyone offer any advice. I have a mortgage with Halifax and have been making overpayments of £100pm.
I recently received my annual statement and noticed that Halifax had reduced my standing order six months ago so that I am only paying my normal monthly amount - ie cancelled my overpayment.
I have complained and am waiting to hear an explanation from them. I feel I should be compensated at the very least for the extra interest I will now have to pay. What can I do in this situation?

Thanks

Gary123456790

Hi,

They will probably say that any overpayment results in a recalculation of the payment amount rather than a reduction in the term to keep the payments the same, unless you tell them you want to keep paying the same amount as a standard payment.

Im not sure how far you will get with your complaint, but the interest amount will be pretty small so they might give you that back.

Maybe you should check your bank statements more often???

With any company you deal with (especially financial ones) presume they will do it wrong and always confirm exactly what they have done. Santander get it wrong all the time!

Gary.

Freebiehunter1980

Thanks Gary. Yes, I do check the bank statements, but I obviously didn't look closely enough. Very frustrating!

dwight-van-man

Don't know if this is any help, but I've got a BM Solutions mortgage (same group) and make overpayments through an increaed direct debit, but they review this every six months so if i don't call in when they send out the reveiw letter, the dd reverts to the contractual payment. Might be a similar thing....

DVardysShadow

Freebiehunter1980 wrote: »

.... I recently received my annual statement and noticed that Halifax had reduced my standing order six months ago so that I am only paying my normal monthly amount - ie cancelled my overpayment.

Be very aware of the difference between a Standing Order and a Direct Debit. The recipient should not be able to alter the amount of a Standing Order, but can vary a Direct Debit.

rothchick

If you overpay by direct debit with Halifax this will change every time there is a rate change or when your product comes to an end.

There is no way a direct debit can remain at a fixed 'overpayment' amount even if you are on a fixed rate mortgage.

There was a rate change in May 2012, but if this happened 6 months ago it could have been because one of your rates came to an end? You would have had a letter to let you know.

You're much better off paying the extra money by a stnading order which the Halifax can't amend. You are then in full control of your overpayment.

HTH