Halifax mortgage-holders to get cash back after interest error - MSE News

Former_MSE_Callum

10,000s of Halifax mortgage customers are to be given a redress payment of £20 after the bank uncovered an error in the way interest has been charged dating back eight years, MoneySavingExpert can reveal...

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'Halifax mortgage-holders to get cash back after interest error'

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glider3560

Are there any more details on the actual error (i.e. what do they mean by "not applied correctly")?

I have a Halifax mortgage and overpay every month by standing order. I notice that some months the payment isn't credited until the next day, whereas it is same day on other months. Would this be related, since I've been overcharged by pennies?

margaretx9

Wow a whole £20 - after they have presumably paid the bank tens of thousands and more in interest and principal over 8 years!

wizk1

Wonder if this also affects mortgage holders from other HBOS and former HBOS institutions. I'm looking at you, TSB.

DPS-2016

Are Halifax guaranteeing that no customer has been overcharged more than £20?

As someone who only recently moved away from Halifax and overpaid on many occasions over a number of years I'd certainly like to see the calculations!

PaulC5

I'd also like to know if we have been charged more than the £20 redress offer as we overpay by 35% every single month!

DarkConvict

I emailed MSE about this months ago. This was flagged by by the FCA as far as I know. I'm in a fortunate position to overpay my mortgage, and Halifax had said that all my over payments should goto my mortgage but some went to the mortgage account fee which was at 0%. Even if you overpay by £20,000 the mortgage account fee only drops by like £30 or so as its small compared to the main mortgage. So the amount of interest say 3.59% on £30 over 4 years is very low. They moved my overpayments to the main mortgage and paid out £20 to cover interest. However they then reduced my regular payment due to my overpayments so the mortgage term was unchanged. However my overpayment were made to reduce the term and keep the payments unchanged otherwise you end up paying more interest. Had to complain to the FCA who gave me a contact at the bank that agreed the regular payments should not have changed and a month later put them back to normal.

Edi81

TSB was previously part of Lloyds TSB which is who bought HBOS of which Halifax is a trading style of its subsidiary Bank of Scotland.

It doesn’t mention that Lloyds, C&G or TSB are affected.

M

[Deleted User]

PaulC5 wrote: »

I'd also like to know if we have been charged more than the £20 redress offer as we overpay by 35% every single month!

No. You'll have been charged even less as you've been overpaying.

Thrugelmir

Edi81 wrote: »

TSB was previously part of Lloyds TSB which is who bought HBOS of which Halifax is a trading style of its subsidiary Bank of Scotland.

It doesn’t mention that Lloyds, C&G or TSB are affected.

M

Halifax mortgages would have been maintained on a seperate computer system at the time in question.

TSB was absorbed by Lloyds many years ago. Simply ressurrected to enable the split out of Lloyds for the new entity imposed on the bank by the EU.

PaulC5

Deleted_User wrote: »

No. You'll have been charged even less as you've been overpaying.

Its the way they have added interest to people who have been making overpayments, therefore the more you have overpaid, the higher the incorrectly charged interest you have paid hence the £20 "refund" for there mistake!