Halifax mortgage overpayments


I just made an overpayment on my Halifax mortgage for the first time.

At Nationwide it was very simply reduce the term, or reduce the monthly payment.

By default Halifax does neither.  I tried calling to ask what happens if I don't choose one of these methods and I could not really understand what they said, something about reduced interest..

At Nationwide I always chose to reduce the term, and figured that would also reduce interest as I was being charged on a smaller mortgage anyway.

So I really don't understand what happens if I pay off an amount of money, but somehow it's possible that neither the term or the payment goes down?

Any help would be greatly appreciated



  • Edi81
    Edi81 Posts: 1,426
    First Anniversary First Post Name Dropper Combo Breaker
    The interest going forward will reduce and has effectively reduced the term. 
  • Bigphil1474
    Bigphil1474 Posts: 2,286
    First Anniversary Name Dropper Combo Breaker First Post
    As above, you'll just end up paying it off sooner, so by default the term has gone down. If you come to re-mortgage, you could revert to the original term and pay less if you get a similar rate.
  • kingstreet
    kingstreet Posts: 38,614
    First Anniversary Name Dropper Photogenic First Post
    See pages 30 & 31;-


    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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