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

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Former_MSE_Callum
Former_MSE_Callum Posts: 696 Forumite
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in Mortgages & endowments
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
    glider3560 Posts: 4,115 Forumite
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    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
    margaretx9 Posts: 212 Forumite
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    Wow a whole £20 - after they have presumably paid the bank tens of thousands and more in interest and principal over 8 years!
  • wizk1
    wizk1 Posts: 911 Forumite
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    Wonder if this also affects mortgage holders from other HBOS and former HBOS institutions. I'm looking at you, TSB.
  • DPS-2016
    DPS-2016 Posts: 57 Forumite
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    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
    PaulC5 Posts: 190 Forumite
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    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
    DarkConvict Posts: 6,338 Forumite
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    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.
    Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.

    There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies
  • Edi81
    Edi81 Posts: 1,444 Forumite
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    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]
    [Deleted User] Posts: 35,242 Forumite
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    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
    Thrugelmir Posts: 89,546 Forumite
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    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
    PaulC5 Posts: 190 Forumite
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    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!
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