Halifax Mortgage Sub-Accounts increased recently?

opinions4u

Suarez wrote: »

We added the £999 to the mortgage and the rate on that is 6.29%. I though the interest is calculated daily so surely the balance shouldn't be £269 higher due to interest? I've phoned Halifax and they will get back to me within 10 days.

How long have you had the mortgage?

Suarez

opinions4u wrote: »

How long have you had the mortgage?

Commenced 5th Oct 2012

Mortgage_Holder

I received a similar letter and called the number and they gave me a pretty clear explanation...

Sub Account 1 includes the product arrangement fee I took out when I took out the mortgage and also my insurance fees

Sub Account 2 is my mortgage debt

Sub Account 98 is my Mortgage Account Fee

The balance is still the same, they are just breaking down the way they are displaying it, which is how you'll now see it in future.

Hope this helps!

rothchick

QUOTE=Suarez;60161777]My sub account 1 is £1268.20 since this new mortgage split. The mortgage fee was £999. How can this be £269.20 higher? My sub account 98 is £245 interest free and the mortgage was taken out 6 months ago so this hasn't reduced.[/QUOTE]

The only explanation would be that you've had another fee added to your mortgage (apart from the £999 and £245). The interest on £999 would not amount to £269 . When you call the advisor should be able to see this. If they can't then its best to wait for a response.

jonny2510

jonny2510 wrote: »

Though my sub accounts are
1) 245.32 @ current fixed rate
2) Main mortgage amount @ current fixed rate
98) 245 @ 0% - the arrangement fee.

I'm, sure there's a simple explanation, though. If anyone discovers it before me, please let us know

I'm still confused as to what my sub account 1 is???

2 & 98 I accept and agree with . Howerver I've just checked my original mortgage offer, and there were no other charges etc mentioned (other than the valuation fee - which even my offer states I had already paid). I shouldn't have racked up any other charges (or insurance fees).

It's also strange that 98 is still at £245 despite me paying it off for approx 18 months?

I do realise the forumites most likely won't be able to help me with this, and it'll require a call to Halifax to clear up. I'm just thinking out loud!

Goldiegirl

Halifax mortgages have been split into sub accounts since sometime in the late 1980's

It was originally

Loan A - original house purchase loan
Loan B - service loan (fees and insurance premiums)
Loan D - further advances not eligible for Miras
Loan E - further advances eligible for Miras

There was never a loan C, as 'C' meant something else in the Halifaz.

I think in recent years, the E loan was taken over by the interest free £245.

So there have always been sub accounts, it's just that they weren't advertised to the customers.

Now that they have changed their systems, they've obviously decided to make it clearer about the sub accounts, so some of their sub account balances have accrued over many years, they may relate to fees that were charged years ago, and the customers have forgotten all about what they did years ago.

No wonder there's confusion.

I'm so glad I don't work for the Halifax anymore - if I did I'd have been one of the people answering all the letters about this!

opinions4u

Goldiegirl wrote: »

Halifax mortgages have been split into sub accounts since sometime in the late 1980's

It was originally

Loan A - original house purchase loan
Loan B - service loan (fees and insurance premiums)
Loan D - further advances not eligible for Miras
Loan E - further advances eligible for Miras

There was never a loan C, as 'C' meant something else in the Halifaz.

I think in recent years, the E loan was taken over by the interest free £245.

So there have always been sub accounts, it's just that they weren't advertised to the customers.

Now that they have changed their systems, they've obviously decided to make it clearer about the sub accounts, so some of their sub account balances have accrued over many years, they may relate to fees that were charged years ago, and the customers have forgotten all about what they did years ago.

No wonder there's confusion.

I'm so glad I don't work for the Halifax anymore - if I did I'd have been one of the people answering all the letters about this!

C was clearing items. In other words, unallocated stuff flying around the system!

If they'd allocated C as a mortgage reference it would have thrown millions into clearing every day!

Goldiegirl

opinions4u wrote: »

C was clearing items. In other words, unallocated stuff flying around the system!

If they'd allocated C as a mortgage reference it would have thrown millions into clearing every day!

I was no stranger to reconciling the clearing accounts, I can't even begin to imagine what it would have been like if there had been a loan C !! :eek:

SoloSailor

Hi All.

I thought I would share some more info with you on my own situation to clarify things.

Firstly can I appologise for putting my sub-accounts in a funny order on the original post. They actually are:-

Sub Account 1 - £228.07 (The mystery one!)......3.84%
Sub Account 2 - The main outstanding mortgage....3.84%
Sub Account 98 - £245 (The account Fee) charged at 0%


Product Fee of £995 - was paid upfront, receipt to prove....

Valuation Fee of £280 - found a letter stating already paid this....

Legal Fee of £117.50 - letter states payable before completion.
So I must have paid that one, for sure!!!


So for the life of me, I have no idea what this sub account 1 is or where it has come from, as checked everywhere and not mentioned before. So all I can do is await the response from Halifax, will keep eveyone posted!

Regs
SoloSailor

jonny2510

SoloSailor wrote: »

Hi All.

I thought I would share some more info with you on my own situation to clarify things.

Firstly can I appologise for putting my sub-accounts in a funny order on the original post. They actually are:-

Sub Account 1 - £228.07 (The mystery one!)......3.84%
Sub Account 2 - The main outstanding mortgage....3.84%
Sub Account 98 - £245 (The account Fee) charged at 0%


Product Fee of £995 - was paid upfront, receipt to prove....

Valuation Fee of £280 - found a letter stating already paid this....

Legal Fee of £117.50 - letter states payable before completion.
So I must have paid that one, for sure!!!

Interesting!

I've just spoken to Halifax, whose explanation was first that the sub account 1 could be safely ignored - as it didn't apply to me!

When I further queried it, I was passed to a supervisor, and was told that when moving to the new system they couldn't move the old Mortgage Account Fee to the new system as it was, so they took £245 off the outstanding mortgage debt, to create sub account 98, then started charging interest to £245 in sub account 1????

It almost made sense until I wrote up notes after the call. Looking at SoloSailor's figures above too, their sub-account 1 is less than their sub-account 98 too???

I'm going to write, and ask for an explanation in writing....

I had no product fee, and again have a letter stating I'd paid the valuation fee???

If anyone else gets anywhere with this, please post here