Halifax letter - change the way they manage your mortgage

rich246

I received a letter from the Halifax Bank in August informing me that they were going to change the way they manage my mortgage.

Most of it I understood, but one part did make me sit up and pay attention, and this was the question 9 on the FAQ page entitled:

'My mortgage is calculated on an annual interest basis. Will this change?'

They make brief mention that previous overpayments receive credit interest, under the new system this concession is being removed, as an alternative they mention they provide the option to change over to a daily interest calculation method though you have to request this option.

Does this mean any overpayments do not decrease the overall balance until the end of the year, so in effect, the Halifax are receiving interest free money from mortgage holders who believe they are paying off the balance and decreasing their mortgage interest payments.

Can anyone shed any light on the new terms and conditions, is it better to stay or change to the daily interest calculation method?

opinions4u

Chances are you're already on daily interest. If it was taken out since 2002ish it will be.

If not, request a change!