Halifax Reduced Contractual Payments

mick39

Hi,


I have been overpaying my Halifax fixed mortgage and managed to wipe nearly 5 years off my mortgage, but recently due to a glitch in their system (charging interest on the mortgage fee) they have recalculated my mortgage and reduced my monthly contractual payment by nearly 20% by setting the mortgage to repay over the full term again, so instead of reducing my payment by around 40p per month it has changed by nearly £100 per month


Frustrated to say the least as this could cost up to £4k additional interest if it remained the same over the lifetime of my mortgage.


Raised a complaint but seems they cant do anything any advise before I go off to the ombudsman?


Thanks


Mike

[Deleted User]

Yes - wait for their final decision or FOS will kick you into touch.

fuzzipeg

They did the same with us.

We just rang them up and put the monthly payment back to what it had been previously (actually slightly higher as we rounded it up).

mick39

Fuzzipeg - They said they could increase my contractual payments back up but it would start to use my 10% allowance for overpayments - maybe something you want to check that they are taking away some of your allowance

fuzzipeg

Thanks, yes, they did make us aware of that. In our case, that was fine as we've generally slowed down on the over-payments to the mortgage in favour of pensions for now. Our fix comes to an end next April, so we'll take a view then as to what's available then.

scott89

were you notified by them regarding the interest on the product fee, if not how did you notice ?

I have recently got a Halifax mortgage so want to make sure im not a victim of the "glitch"

thanks

Loan_soldier

The same thing happened to me however I took the opportunity to add more to my savings so when the fixed period ends I can pay it down then.

Although inconvenient my saving rate is higher than my mortgage rate so I will be better off, if only slightly.

Loan_soldier

scott89 wrote: »

were you notified by them regarding the interest on the product fee, if not how did you notice ?

I have recently got a Halifax mortgage so want to make sure im not a victim of the "glitch"

thanks

Letters were sent out.

It is an issue relating to an historic error.

You should not be effected.