Halifax - Unwanted mortgage recalculation (reducing monthly payments)

Andreg

If we can't go back to our original payment amount the plan is to put the monthly difference into a savings account and hopefully be able to pay this off as part of the remortgage in 2026.

If you are on a five year fix currently, then you're likely to get a better interest rate in a savings account than your current mortgage rate.  If so then that is a better option.

HelloForum

rjmachin said:

Jem2910 said:

Hi
i have had the same issue of the bank reducing my payments because I have overpaid 
it was only when I worked it out I will owe more when my deal ends in two years if I reduce the payments 
they never told me that 
very miss leading
have logged a complaint but basically they have said tough that’s what they are doing
but I signed a 5 year deal with fixed payments for 5 years 
surely that can’t just change when they want 

I switched to a new 5 year deal with Halifax earlier this year (May) that takes effect from 1st November.

Unfortunately, in the "Mortgage Illustration", section "5. Amount of each instalment", it clearly says:
"Your payment amount may change each year to keep your mortgage on track - even if any part
of your account is on a fixed interest rate."

Just dug mine out from Oct 22 and it makes no mention of it in the mortgage illustration. I've also just had a letter but I don't yet know what it will change by yet.

kassy64

Hi, recently had the same we've been overpaying up to the max permitted for  while now. My current deal of 1.04% expires in January and new payments on variable rate are nearly 6% but my monthly payments have only gone up £30 per month. Its because the mortgage had been recalculated to maintain the original term presumably. Anyway as discussed on a previous thread I luckily have the funds to pay it off once reduced rate ends.