Halifax Overpayment

osaddict

Hey everyone,

I have a Halifax Mortgage setup, as soon as I could I made an overpayment to cover the fees lumped onto it, plus a bit more for good measure. I’d like to do this once a month, by varying amounts.

I have tried to call the switchboard twice today and it just takes ages – having to enter my date of birth, just the numbers from my postcode (had to think fast there, not been asked that before!), then when it started –before I even talked to anyone!

To those with a Halifax mortgage (a new one, not one starting with A) and who overpay, do you:

1. Do it via the phone, if so, any tips to avoid the nonsense?
2. Do it via the internet?

If the latter, does this 100% reduce the term and keep the monthly repayments the same? – From what I could see it seemed that setting up a ‘regular’ overpayment wouldn’t reduce the term – according to the Halifax website: http://www.halifax.co.uk/mortgages/mortgage-information/overpayments-underpayments/

“If you've a repayment mortgage, overpayments will not automatically reduce your mortgage term. This is because whenever we recalculate your monthly payment, for example at an interest rate change, we set your new monthly payment so that it repays your loan over the term we originally agreed with you.”

“If you want to make regular overpayments to pay your loan off sooner, but you don’t want to ask us if you can formally change the term of your mortgage agreement, you'll need to remember to review the amount of the monthly payment whenever it's recalculated and increase the amount of your regular overpayment.”

Essentially I translated that to ‘you’ll have to give us a call or something and just tell us each month’
If anyone could advise that would be great.

Thanks!

lee111s

You'll only need to let them know when the monthly payment is recalculated, such as at an interest rate change like they have mentioned.

osaddict

I'm not sure I follow? I am on a 2 year fix with them - with the intention that I'll probably move to another fix after that.

TrickyDicky101

osaddict wrote: »

I'm not sure I follow? I am on a 2 year fix with them - with the intention that I'll probably move to another fix after that.

So by overpaying you will be reducing the term by reducing your overall debt and there will be no recalculation of repayments within that 2 years.

At the end of the 2 years, Halifax will recalculate your payment on the basis that the mortgage will continue to the originally agreed term.

This is likely to mean you will want to pay more per month following this recalculation than Halifax demand from you so that you do pay the mortgage off sooner than suggested by the original mortgage length.

osaddict

Right, I see, So I could set something up regularly which would overpay if I wanted.

If I also wanted to make sporadic overpayments - e.g. if I was luckily enough to get a bonus or something at work, would I be best just calling up for something like this, or could I do it online?

TrickyDicky101

I haven't had a mortgage with Halifax before but I can certainly do that online with Nationwide

Monkeychops16

You can make payments online to them

chanz4

Don't forget you can only reduce the sub accounts by 10% each year

scoops82

I am with Halifax and I make overpayments online, albeit only very small amounts.


You just need to set them up as a new payee - Your reference is your long mortgage account number and the last two digits relate to the sub account you wish the money to go to.


I would ring them up next time and ask for the Sort code and account number and just double check that it is correct. Set them up and pay £1 to make sure its correct before sending any larger payments.

osaddict

Cheers scoops, and everyone else, I'm going to give it a go later today

class2ldn

This is handy to know as our mortgage has just been agreed with halifax and we intend to overpay.