Halifax Mortgage Repayments

Capt_x

Hi, Newbie here.

I have two Halifax mortgages running concurrently on the same property, both are interest only. On of these mortgages is running at something like 0.7% over base, the other at 2% over base. The latter is the bigger of the two mortgages. I have been overpaying and now have a lump some to pay. I was told by the Halifax that any overpayments must be credited to the lower interest mortgage first. When this is paid off then I can start over paying the lower rate mortgage. Is this legal, should I not be able to choose which one I pay off first? Obviously leaving the higher rate mortgage to pay off last is to their benefit.

Also, over the last several months I have received correspondence from them requesting information on how I plan to pay the mortgage off at the end of the term. If this information is not provided then they threaten to convert the mortgage to a repayment mortgage! Is this legal or just bullying tactics?

Thrugelmir

Lenders are under direction from the FCA to write to all borrowers with interest only mortgages. Answering a simple enquiry shouldn't be an issue. Therefore lenders will assume that if no response is received. That there is an issue, and will therefore force the matter now. Rather than dealing with a multitude of borrowers reaching the end of the mortgage term down the road that require more forcible action, i.e. legal channels.