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    • 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 3
    • Mr Falling Star
    • By Mr Falling Star 21st Feb 11, 8:44 PM
    • 2,450 Posts
    • 3,769 Thanks
    Mr Falling Star
    This looks pretty positive. I took out a 2 year fixed rate mortgage in July 2006 so I was on the SVR by Jan 2009 and have been paying like a good'un ever since (even paying back 18k early)

    I don't know how much it will be but it seems pretty positive
    The World come on.....
  • loosley
    Other Halifax group mortgages? TMB
    Hi, anyone know if this would include other halifax group companies such as TMB The Mortgage Business? I have a mortgage which has reverted to SVR but seems to have been kept very high!
    • Graham_Devon
    • By Graham_Devon 21st Feb 11, 9:00 PM
    • 53,847 Posts
    • 118,250 Thanks
    Interested in whether they can just pay it off the mortgage. I don't really mind, it's a welcome lumpsum either way. However, like others have said, I'm not sure they can just credit the mortgage and wipe some of the balance off, as they have taken more money out of our accounts than they should have, apparently, hence the repayment.

    Surely we should therefore have the money given back to us, rather than paid off the loan? I'd probably put it straight back to the mortgage anyway, so I'm not too fussed and it's welcome either way, but unsure how they can in effect, if they are admitting the error, force us into overpayments?
  • mcgrory73
    I took out my 2 year fixed rate mortgage in November 2006, which has since reverted to SVR.

    It is with Bank of Scotland, not branded as Halifax - does anybody know if this rebate will apply to me?
  • pompeyfaith
    In answer to Graham they cannot unless it is written into the mortgage contract, a contract is a contract and lawful in a court of law they have to abide by the terms just as you have to.

    And the terms are X amount over X amount of years

    Like I said if the account is in arrears then they can withhold the arrears amount so the account is up to date, but again that has to be written in the contract which it usually is.
  • pompeyfaith
    I recommend that everyone reads there mortgage contract and if you do not have a copy SAR the Halifax for a copy as it is times like this that our mortgage contracts are very important as it governs our mortgage with benefits to us and them.
    Last edited by pompeyfaith; 21-02-2011 at 9:13 PM.
    • lvm
    • By lvm 21st Feb 11, 9:13 PM
    • 1,513 Posts
    • 1,781 Thanks
    I think the comments people are making about "they cannot just put the money into mortgage - have to give you it in cash" are really interesting.

    I don't disagree at all but it's evident that Halifax don't seem to have admitted any fault but just refer to the "potential confusion" so they're not saying "sorry, we made a mistake, here's your money back" - it is just a goodwill payment.

    Obviously they will write to everyone confirming they've put money onto mortgage account - can't wait to hear the stories of those people who do decide to take it a little further and demand the cash.

    I wait in anticipation...
    Mortgage Free Journey!
    Total Purchase Prices - 1,031,000
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    Mortgage(s) March 2019 - 708,102
    Aim for March 2020 - 695,000
    Aim for March 2021 - 680,000
  • pompeyfaith
    Even a Goodwill payment can be paid in cash there is nothing in law that says you have to overpay your mortgage.

    There is nothing hard about that statement it is simple facts, they are relying on people not knowing this and in many cases a lot of consumers will not know and take what the Halifax says as gospel.
  • pompeyfaith
    Ill put it another way providing your mortgage is up to date and on target it finish on the date stated on the contract there is nothing more they can expect.
  • StephenM
    I think I'll miss out on this one. My current deal was taken out in the relevant period, but its a lifetime tracker so I've never paid the SVR on it.

    Shame. Still the tracker at Base Rate +0.99% is pretty good, so mustn't grumble.
    • susieanne
    • By susieanne 21st Feb 11, 10:19 PM
    • 442 Posts
    • 117 Thanks
    I have my morgage with Intelligant Finance which is part of Halifax would this apply to Inteligant Finance customers ??
  • opinions4u
    For clarity, this only applies to Halifax branded mortgages. Not TMB, IF, BM etc.
    • lvm
    • By lvm 21st Feb 11, 10:59 PM
    • 1,513 Posts
    • 1,781 Thanks
    Just a little question for all you mortgage experts out there!

    Why are Halifax not calculating the goodwill payment from Oct 2008 if this is when interest went to 3% above BoE base rate? Why is it only from January it's being calculated?

    Thanks x
  • curlygirl1971
    According to BBC News (website) updated tonight "....Halifax said that some customers would receive a flat-rate payment of 250.
    Others will receive a variable payment, related to the rise in their interest payment and the size of their mortgages. This could range from hundreds of pounds to several thousand pounds."

    It doesn't qualify it any further - or say why some would get a flat 250. Perhaps they're paying out a minimum? We are just going to have to wait for further information/our letters in April!
  • pompeyfaith
    Not sure but I'm going to look for the answer, maybe it is because that is the agreement reached with the FSA and FOS
  • pompeyfaith
    It doesn't qualify it any further - or say why some would get a flat 250. Perhaps they're paying out a minimum? We are just going to have to wait for further information/our letters in April!
    I am of the understanding that it relates to the mortgage exit fee.

    Yes as I thought from Martins article

    Some Halifax mortgage holders on the SVR will be tied in (meaning they must pay a penalty to leave). These customers would have been told about the removal of the cap, the bank stresses. Nevertheless, they will receive a "goodwill" payment of 250.
    Last edited by pompeyfaith; 21-02-2011 at 11:31 PM.
    • pammyj74
    • By pammyj74 21st Feb 11, 11:29 PM
    • 3,164 Posts
    • 17,364 Thanks
    grr am gutted as took mine out on feb 08 and went to svr in feb 10 so the early date is past the 2007 date by a few months

    MPs left feb '08 276- Dec 13 36 MB Jan 10 ~ 82,377 Dec 13 ~ 29987
    EMFD was Feb 32 NOW Dec 2013 its Dec 2016
    MF new target Dec 16 REACHED!!
  • curlygirl1971
    I am of the understanding that it relates to the mortgage exit fee.

    Yes as I thought from Martins article
    Originally posted by pompeyfaith
    Aaah - I'd not read the article since this lunchtime and it must have been updated. So thats good to know - thanks

    PammyJ74....gutted for you! I Know how hard you work at reducing your mortgage

    I've checked all my paperwork tonight - As I was an existing Halifax Mortgage customer whose rate was coming to an end, I have a 'Product Transfer offer' dated December 05 - am not sure if this will be treated in the same way as a Mortgage Offer. It does say that the mortgage (I was being offered) "is governed by the mortgage conditions we have sent (the new mortgage conditions) instead of the mortgage conditions that currently apply (the old mortgage conditions)". The 'new' conditions talk about the Cap but it does say "we can change the 2% limit, but before we do, we will give 30 days notice to customers on SVR..."

    I still had the mortgage at Jan 09 and from April 09 I've been on SVR.

    I have two options. I can calmly wait and see. Or I can obsess and fluctuate between giddy and despairing for the next few weeks until letters are sent out
    Last edited by curlygirl1971; 22-02-2011 at 12:29 AM.
    • Paulgonnabedebtfree
    • By Paulgonnabedebtfree 21st Feb 11, 11:44 PM
    • 2,703 Posts
    • 28,940 Thanks
    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.
    Originally posted by pompeyfaith
    It will be interesting to see how customers are treated if they went into arrears during this period - especially if the extra 1% caused it. The charges for veing in arrears can end up being quite substantial. Even worse, I wonder if anyone had their home repossessed and/or their lives ruined due to being a bit short on the mortgage repayments for a while. Compensation for something like that should run into big money IMO. It won't though as they usually wriggle out of coughing up for collateral damage.
    • getmore4less
    • By getmore4less 22nd Feb 11, 7:41 AM
    • 38,025 Posts
    • 23,589 Thanks
    There seems to be some confusion by some posters.

    The SVR rate is not the issue here.

    The issue is the T&C of your mortgage and specificaly that the 2% cap could change so was not a 2% cap and the wording surounding this and notification.

    It appears not all borroweres thought they were correctly notified when the "cap" changed from 2% to 3%

    So it looks like a lot of people are in for a windwall due to a notification error of a legitimate change in rate.

    Would be usefull if someone with a mortgage in the effected range could dig out the relevent section from the T&C and the offer(need both) to help understand what was actualy in the T&C's of those loans.
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