Overpayments and bank reducing monthly payments

Yoduderelax1

So in 2022 i took out 16 Yr mortgage, fixed for 10 yrs. Halifax are clearly not liking me making my allowed overpayments as they have reduced the monthly payments.
I have now submitted claim to the FOS following the banks refusal to go back to the payment we both agreed in 2022 when agreeing to terms.
I can see from other treads that others are also unhappy with their banks but just wondering if any went to the FOS and if so whether the complaint was upheld

Hoenir

When you made an official complaint to the Halifax. What was their explanation?  

Yoduderelax1

A business decision has been made to implement an annual recalculation of the monthly payments on all
mortgage accounts on their anniversary. The business decision was made following the Financial Conduct
Authority (FCA) introducing a new consumer principle that requires firms to act to deliver good outcomes for
retail customers.

molerat

So you will be going to the FOS to complain about Halifax implementing FCA guidance - I wonder how that will pan out ?  Unless your contract explicitly states how overpayments will be treated then I doubt you will get far.  Ombudsman decisions are easily found https://www.financial-ombudsman.org.uk/decisions-case-studies/ombudsman-decisions and a quick scan seems to point to the only successes being with those that have have not followed their specific terms.

born_again

It's not a case of them not liking your overpayments.
It is the way their procedures work.

I'm sure many also complain that they make overpayments, but their annual payments do not go down.

All down to the lenders internal processes. Which as a rule FOS will say is OK. As their remit is not over internal processes, so long as they are breeching any FCA reguations.

Hoenir

Yoduderelax1 said:

A business decision has been made to implement an annual recalculation of the monthly payments on all
mortgage accounts on their anniversary. The business decision was made following the Financial Conduct
Authority (FCA) introducing a new consumer principle that requires firms to act to deliver good outcomes for
retail customers.

What's your complaint in this regard? FOS have no say in this matter. 

Yoduderelax1

'To deliver good outcomes for customers'. Which for me as a customer it's not. While I appreciate your input, I was seeking to know whether anyone had gone to FOS

New_in_the_fens

I’m not sure what the issue is. Continue making your overpayments and as long as you do that, your mortgage will finish earlier than the 16 years - which is your objective.

Hoenir

Yoduderelax1 said:

'To deliver good outcomes for customers'. Which for me as a customer it's not. While I appreciate your input, I was seeking to know whether anyone had gone to FOS

On the basis of what you've quoted. If they have. Then they've been totally wasting their own time. FOS does not rule or interfere on commercial decisions. For the simple reason it has no jurisdication. 

ian1246

New_in_the_fens said:

I’m not sure what the issue is. Continue making your overpayments and as long as you do that, your mortgage will finish earlier than the 16 years - which is your objective.

Are you able to save whatever the difference in monthly payments is into a saving account which matches or exceeds mortgage rate?

saajan_12

Yoduderelax1 said:

So in 2022 i took out 16 Yr mortgage, fixed for 10 yrs. Halifax are clearly not liking me making my allowed overpayments as they have reduced the monthly payments.
I have now submitted claim to the FOS following the banks refusal to go back to the payment we both agreed in 2022 when agreeing to terms.
I can see from other treads that others are also unhappy with their banks but just wondering if any went to the FOS and if so whether the complaint was upheld

HAve you read the T&Cs as well - the payment was based on a certain balance. The T&Cs will usually spell out that you are allowed to make overpayments, but the payment will be calculated accordingly. If so, that's what you agreed to, not a strictly fixed payment regardless of overpayments.