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  • FIRST POST
    • MSE Guy
    • By MSE Guy 21st Feb 11, 11:39 AM
    • 1,628Posts
    • 1,255Thanks
    MSE Guy
    MSE News: Halifax to repay 500m to 300,000 mortgage holders
    • #1
    • 21st Feb 11, 11:39 AM
    MSE News: Halifax to repay 500m to 300,000 mortgage holders 21st Feb 11 at 11:39 AM
    This is the discussion thread for the following MSE News Story:

    "The bank will pay compensation to borrowers who were given "confusing" information about a cap in interest costs ..."

Page 2
  • curlygirl1971
    Shame it is going back onto the mortgage account, I was looking forward to the windfall.

    I took my mortgage out just before the 16 Sept 2007 cut off point and then reverted to the SVR in Sept 2009. My mortgage was for 100,000 (as near as dammit) and I calculated a 1% differnce in payments as 53 a month. I suspect I am inline for 1,007 coming off my outstanding balance of 93,000.
    Originally posted by bell
    If I'm eligible and if they pay back the 1% difference then I calculate it to be around 375 in total. So hardly a windfall for me but even so - a payment of 375 would reduce my mortgage term by a month. So wouldn't complain! Pretty sure I am eligible but am going to try and forget about it so I don't get my hopes up
  • 41123a
    I think I might be affected as I have a mortgage with Halifax taken out in 2006 which reverted to SVR about 2.5 years ago.

    I'm actually about to move to another mortgage supplier so not sure how I'll be reimbursed as I suspect this move will be complete before April 2011 when they claim they will start this process.

    Any ideas?
  • curlygirl1971
    41123a

    Have a look at the offical announcement on the Halifax Website (link above)

    It says that customers who have now left the Halifax will be written to (Point 5)
  • joanne8879
    mortgage help
    hi all. We took out our mortgage for 193,500 in June 2007 at a fixed rate of 5.19. We then went onto SVR in October 2009 until now so would we be affected?
    Can you have a payment to your bank rather than off the mortgage!!!
    advice appreciated!
  • curlygirl1971
    http://uk.finance.yahoo.com/news/Halifax-pay-500m-customers-tele-4193241733.html?x=0

    implies they think some people where told that SVR calculation was changing , others not told.
    Originally posted by payless
    I looked into this and queried it in branch a while ago around Spring 09.

    I was told that those already on the SVR when they increased from BOE +2% to +3% were written to. If you weren't on the SVR at the time of the change then you wouldn't have been informed.

    When the increase was made I was still on the fixed term so didn't find out until I got my 'Change to payment' letter and I noticed the SVR being applied was more than I was expecting. I was annoyed at the time and scrutinised the T&C's. I recall seeing a line in my mortgage T&C something like "(at the end of the term)......the SVR will be applied, currently at XX% (ie BOE plus 2%)". I'm sure that I saw something else - may have been in T&C's...... saying that the Halifax could change the margin in certain situations.

    I just didn't see the point in complaining at the time - a bit lazy but after chasing up a complaint regarding another Halifax product for 10 months (and being left a rude message on my ansa phone by the Branch Manager!) I just couldn't face it.....and after all they did say they could change their own margin
    Last edited by curlygirl1971; 22-02-2011 at 9:26 AM.
  • pompeyfaith
    Looks very much like this affects me and I say to my wife at the time why is our rate still at 5 and a half percent.

    We took our mortgage out with the Halifax in 2006 am the rate was fixed for 1 year and has been SVR since then.

    So am I right in saying the rate should have been 2.5% which is the BofE rate of 0.5% plus the 2% cap

    If so I have paid about 3% over for a few years, will have to dig out the offer letter and the yearly statements since then.
  • pompeyfaith
    I cannot see how they can apply the redress to you mortgage the only time they can do that is if you are in arrears remember they have to abide by the terms of the contract so reducing the term is not an option unless stated in the T&C's

    So if you are in arrears those arrears will be cleared or reduced and if cleared any redress over should come to you.
    • saving123
    • By saving123 21st Feb 11, 3:58 PM
    • 350 Posts
    • 135 Thanks
    saving123
    can anyone tell me if this will affect me - i took out a mortgage with halifax in december 2006 on a 2 year fixed rate. At the end of this i moved onto another fixed rate?

    thanks in advance
    • payless
    • By payless 21st Feb 11, 4:23 PM
    • 6,608 Posts
    • 2,361 Thanks
    payless
    can anyone tell me if this will affect me - i took out a mortgage with halifax in december 2006 on a 2 year fixed rate. At the end of this i moved onto another fixed rate?

    thanks in advance
    Originally posted by saving123
    not from what I read, as it applies to the time you were actually paying SVR
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • curlygirl1971
    Looks very much like this affects me and I say to my wife at the time why is our rate still at 5 and a half percent.

    We took our mortgage out with the Halifax in 2006 am the rate was fixed for 1 year and has been SVR since then.

    So am I right in saying the rate should have been 2.5% which is the BofE rate of 0.5% plus the 2% cap

    If so I have paid about 3% over for a few years, will have to dig out the offer letter and the yearly statements since then.
    Originally posted by pompeyfaith
    If you've been on the Halifax SVR after the end of the fixed rate period you will have been paying BOE plus 2% until Dec 08/Jan 09 and then BOE plus 3% thereafter.....So 3.5% since Mar 09
    Last edited by curlygirl1971; 21-02-2011 at 4:39 PM.
  • pompeyfaith
    Thanks curlygirl so still about 2% over what I should have been paying.
  • curlygirl1971
    I think you need to double check your paperwork and see what interest rates have been applied

    But basically if you have been on the SVR you should have been paying

    Upto Dec 08 / Jan 09..........BOE plus 2%,
    thereafter.............BOE plus 3%

    The Halifax's announcement is in regard to the increase from 2% to 3%......so a 1% increase is in question
    • Pete111
    • By Pete111 21st Feb 11, 4:57 PM
    • 5,098 Posts
    • 9,814 Thanks
    Pete111
    hi all. We took out our mortgage for 193,500 in June 2007 at a fixed rate of 5.19. We then went onto SVR in October 2009 until now so would we be affected?
    Can you have a payment to your bank rather than off the mortgage!!!
    advice appreciated!
    Originally posted by joanne8879

    I am in a very similar boat as I was on a 2 year fixed 5.19 halifax deal that we took out Mid 2007 and which expired in Sept 2009.

    My take on this is that I am owed some money back even though we moved onto a First direct Mortgage in December 09 - this looks to be about 250ish as we were only on the SVR for 2.5 months

    However, if you have remained on the SVR since Oct 09 then you could be in for a very decent windfall - basically 1% of your interest for each month you have been on the SVR. I make that 160 ish per month since Oct 2009 given your figures above - so upwards of 2.5k.

    Can someone tell me/us if that seems correct?
    Go round the green binbags. Turn right at the mouldy George Elliot, forward, forward, and turn left....at the dead badger
  • curlygirl1971
    I'm not getting my hopes up by expecting 1% back

    The Halifax statement says 'Some affected customers will receive a goodwill payment'. It doesn't say 'Refund'

    According to the BBC report 'The Halifax will make payments to 300,000 mortgage customers, up to a 500m total', so in otherwords on average 1666.66 per customer

    I don't think mine will be anything like that amount - but I do have a relatively small mortgage
  • 41123a
    I've just checked my paperwork and we moved onto SVR august 2008 and have been paying that ever since so by my reckoning that is 1% over for the entire period in question. I do hope it is a reimbursement rather than a goodwill payment!
    • bigstevex
    • By bigstevex 21st Feb 11, 6:58 PM
    • 850 Posts
    • 385 Thanks
    bigstevex
    Our mortgage is complicated as it's a staff one taken out in may 07

    we've had 100k on a 10 year fix

    and the other 60k tracked the boe rate, when my partner left halifax it reverted to the svr of 3.5% in october 2009, I presume from october 2009 we were being overcharged as it should have been 2.5%


    Secondly does this mean anyone currently on the SVR with a pre sept 2007 mortgage will get a 1% reduction in what they are currently paying?
    • bigstevex
    • By bigstevex 21st Feb 11, 6:59 PM
    • 850 Posts
    • 385 Thanks
    bigstevex
    I've just checked my paperwork and we moved onto SVR august 2008 and have been paying that ever since so by my reckoning that is 1% over for the entire period in question. I do hope it is a reimbursement rather than a goodwill payment!
    Originally posted by 41123a

    It's definitely going to be a one off payment off your mortgage account unless your mortgage is no longer with them.


    Edit, should be more specific.... it says everywhere this is the case, technically wrong as we didn't intentionally want to overpay the mortgage but if you think about it halifax don't actually lose the money because most of it will come back to them if that makes sense!
    • lvm
    • By lvm 21st Feb 11, 7:24 PM
    • 1,513 Posts
    • 1,781 Thanks
    lvm
    I think I might be affected as I have a mortgage with Halifax taken out in 2006 which reverted to SVR about 2.5 years ago.

    I'm actually about to move to another mortgage supplier so not sure how I'll be reimbursed as I suspect this move will be complete before April 2011 when they claim they will start this process.

    Any ideas?
    Originally posted by 41123a
    This won't affect your compensation - you'll get the exact same as if you were staying a Halifax customer (although maybe not for the last month or so if you move before the last day payment is due).
    • lvm
    • By lvm 21st Feb 11, 7:45 PM
    • 1,513 Posts
    • 1,781 Thanks
    lvm
    This is the best news I've had all year!

    So, I'm on an interest only mortgage (paying about 11 extra a month) with a current balance of about 65, 000. Mortgage started in August 2006 with 2 year fixed rate.

    So...my calculations are as follows:

    What I have paid in interest over 27 months from Jan 09 to Mar 11 = 65000*3.5% / 12 * 27 = 5118.75

    What I should have paid = 65000*2.5% / 12 * 27 = 3565.25

    Giving me "compensation"/"goodwill" (or whatever they want to call it!) of 1553.50.

    I'm just guessing that it's over 27 months - take it the goodwill will be from Jan 09 to Mar 11?

    This will reduce my balance by about 60 a year...before I start making my repayment payments!

    WOO HOO!!!
    Mortgage Free Journey!
    Total Purchase Prices - 1,031,000
    Current Values - 1,150,000
    Mortgage(s) March 2019 - 708,102
    Aim for March 2020 - 695,000
    Aim for March 2021 - 680,000
  • pompeyfaith
    Ill state this again the Halifax have absolutely no right to credit the redress to you mortgage unless it is in arrears and then they can only credit the arrears amount.

    This is your money not there's that they unfairly took from you to shied themselves from the effects of the session and possibly a negative interest rate.

    They are doing this to protect themselves not from the goodness of there heart.

    This money was unfairly taken and that can open a whole can of worms hence why they are keen to bring this to a close.

    Indeed you are all be denied that money so statutory interest should be applied also.
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