Halifax: How can I minimise their income from me?

curtmantle

I will try and cut a long story short: Halifax through their incompetence have had me on the wrong mortgage for 4 years. When I tried to change my mortgage from 100% interest to part repayment (majority repayment) four years ago I had to go into branch 3 times and ring them a further 7 or 8 times before they activated it (or so I thought). I checked since over the phone and was told that my mortgage was as I had wanted it.

Today, when I rang to find out when my fixed period ended, they told me that my mortgage was all interest only (as it had been originally). They were supposed to ring me back when they'd checked but they didn't... and apparently it's all my fault - 8 phone calls wasn't enough and I needed to work out what product I was on based on my monthly payments (this was all pre-Martin Lewis for me... I'm a little more clued up now I hope!).

Funnily enough they have today managed to change my mortgage to exactly what I wanted originally without asking me any questions... so clearly they had the info on their system! They're just hoping I'm going to go away I guess.

I have cut that story short and it's still a saga!

Question: With 15 months left on my fixed rate period and my ISA worth £15k what would be the best way to reduce Halifax's income from me in this period? I think it's safe to say that I'll be switching when the period is over!

Any advice at all would be gratefully received. I may write to Which? magazine with the story too as I am a member and Halifax have not only been incompetent a number of times during this... but they clearly don't value their customers very highly either.

Trying_to_be_good

I would ask them to allow you to overpay up to the amount you would have been able to had they put you on the mortgage you requested. However, you will only be better off if the mortgage interest is more than you're getting on the savings - unlikely if you have a good ISA. You may actually be in a better position than if they'd put you on part repayment if your ISA rate exceeds your mortgage interest rate.

curtmantle

Thanks for the reply.

My ISA has made about £5k in profit in 11 years. I have paid in about £10.5k so far. Generally speaking it hasn't performed well... and with 14 years left I am £50k short!!

Two options I see:

1/ Continue with the repayment/ISA split (it's about 66% repayment at the moment)
2/ Cash in the ISA and have 100% repayment on what's left.

One way or another I need to pay that £50k shortfall in the next 14 years!

Martin Lewis' advice has helped me get up to speed on so many things but mortgages are still my weakspot.

Trying_to_be_good

Another option would be to go repayment (on some or all of the balance) and extend the term, unless the 14 year timescale is a hard deadline for you (e.g. retirement date).

Apologies - I'd assumed it was a cash ISA not an equity one. I would think now is a bad time for cashing in unless you really need the cash immediately - try and ride out the storm.