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Halifax insurance non payments
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HedleyM
Posts: 3 Newbie
Evening all... New to this so please forgive me. Iv searched but apart from a thread along time ago I'm struggling to find information.
Very briefly I'll explain my issue.
Iv been with the Halifax for 21 years. I signed up for a repayment mortgage along with home and building insurance. Iv not changed my insurance for 21 years until my renewal came this year's for over £800.
I called the Halifax to find out how much our new mortgage payment would be, as I'd taken out insurance with another company I assumed my payments would go down monthly but when I called they said there was no change as the insurance cost gets added to the end. I didn't understand this so I spoke to a second person who said they would look into this and get my balance recalculated.
Before I cancelled the insurance my mortgage payment was £328 and after they recalculated it went up to £358!! I called to question the new amount, only to be told the full 21 year's insurance costs hadn't been paid but just added onto the end of the mortgage for me to make a lump payment at the end or I could pay this higher payment which would help clear the balance. This wasn't something we agreed as we thought this was part of the mortgage payment. I can see on the statements each year the insurance costs added on but no other information about a second balance owed.
A few years ago when the interest rate increased our payments went up by much more than we expected and when I questioned this they said then that they had recalculated our payments, it now makes me question if they added on the insurance then too but we were never informed of this. Apart from this call we've never made any changes to our mortgage or insurance.... Stupid I know.
Has anybody recently heard of this and if so what did you do and what was the out come. There is now an open complaint with the Halifax ongoing but may take 8 weeks due to the to age of the account.
I only have four years left on my original £27,000 mortgage and I'm now expecting them to say I own 21 years of insurance costs totaling in the region of £15,000 which I couldn't possibly pay off in a lump sum.
I'd be grateful for any advice......
Thanks
Michelle
Very briefly I'll explain my issue.
Iv been with the Halifax for 21 years. I signed up for a repayment mortgage along with home and building insurance. Iv not changed my insurance for 21 years until my renewal came this year's for over £800.
I called the Halifax to find out how much our new mortgage payment would be, as I'd taken out insurance with another company I assumed my payments would go down monthly but when I called they said there was no change as the insurance cost gets added to the end. I didn't understand this so I spoke to a second person who said they would look into this and get my balance recalculated.
Before I cancelled the insurance my mortgage payment was £328 and after they recalculated it went up to £358!! I called to question the new amount, only to be told the full 21 year's insurance costs hadn't been paid but just added onto the end of the mortgage for me to make a lump payment at the end or I could pay this higher payment which would help clear the balance. This wasn't something we agreed as we thought this was part of the mortgage payment. I can see on the statements each year the insurance costs added on but no other information about a second balance owed.
A few years ago when the interest rate increased our payments went up by much more than we expected and when I questioned this they said then that they had recalculated our payments, it now makes me question if they added on the insurance then too but we were never informed of this. Apart from this call we've never made any changes to our mortgage or insurance.... Stupid I know.
Has anybody recently heard of this and if so what did you do and what was the out come. There is now an open complaint with the Halifax ongoing but may take 8 weeks due to the to age of the account.
I only have four years left on my original £27,000 mortgage and I'm now expecting them to say I own 21 years of insurance costs totaling in the region of £15,000 which I couldn't possibly pay off in a lump sum.
I'd be grateful for any advice......
Thanks
Michelle
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