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  • FIRST POST
    • MSE Guy
    • By MSE Guy 21st Feb 11, 11:39 AM
    • 1,628Posts
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    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 1
    • beecher2
    • By beecher2 21st Feb 11, 11:56 AM
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    beecher2
    • #2
    • 21st Feb 11, 11:56 AM
    • #2
    • 21st Feb 11, 11:56 AM
    http://www.mortgagestrategy.co.uk/distribution/lloyds-sets-aside-%C2%A3500m-redress-for-300000-mortgage-customers/1026466.article

    Bit more detail

    The relevant mortgages were written during 2004 – 2007 by Bank of Scotland under the Halifax brand, and through the contact programme, goodwill payments will be made to affected customers.
    • Graham_Devon
    • By Graham_Devon 21st Feb 11, 12:08 PM
    • 53,847 Posts
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    Graham_Devon
    • #3
    • 21st Feb 11, 12:08 PM
    • #3
    • 21st Feb 11, 12:08 PM
    Looks like I may get some compensation or something then?

    Not sure what for, mind. But the affected mortgages apply to myself.
    • Alpine Star
    • By Alpine Star 21st Feb 11, 12:15 PM
    • 1,262 Posts
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    Alpine Star
    • #4
    • 21st Feb 11, 12:15 PM
    • #4
    • 21st Feb 11, 12:15 PM
    Lloyds statement to stockmarket http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=10793385
  • opinions4u
    • #5
    • 21st Feb 11, 12:15 PM
    • #5
    • 21st Feb 11, 12:15 PM
    http://www.halifax.co.uk/mortgages/help-and-advice/existing-customers/Halifax-Standard-Variable-Rate-announcement/

    Relates to the October 2008 change to SVR from 2% above BofE to 3% above BofE which was very much a "survive the Credit Crunch" decision.

    Perhaps Yorkshire/Clydesdale should also refund across the board for their calculation error.
    Last edited by opinions4u; 21-02-2011 at 12:18 PM.
    • beecher2
    • By beecher2 21st Feb 11, 12:20 PM
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    beecher2
    • #6
    • 21st Feb 11, 12:20 PM
    • #6
    • 21st Feb 11, 12:20 PM
    Thanks for that link opinions4u

    Payment will be made to customers that received a Halifax mortgage offer between 20th September 2004 and 16th September 2007, and have been paying SVR at any point since 1st January 2009.
    • Graham_Devon
    • By Graham_Devon 21st Feb 11, 12:31 PM
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    Graham_Devon
    • #7
    • 21st Feb 11, 12:31 PM
    • #7
    • 21st Feb 11, 12:31 PM
    http://www.halifax.co.uk/mortgages/help-and-advice/existing-customers/Halifax-Standard-Variable-Rate-announcement/

    Relates to the October 2008 change to SVR from 2% above BofE to 3% above BofE which was very much a "survive the Credit Crunch" decision.

    Perhaps Yorkshire/Clydesdale should also refund across the board for their calculation error.
    Originally posted by opinions4u
    So looks like they are going to give us the 1% back for each month?
  • opinions4u
    • #8
    • 21st Feb 11, 12:34 PM
    • #8
    • 21st Feb 11, 12:34 PM
    So looks like they are going to give us the 1% back for each month?
    Originally posted by Graham_Devon
    I understand that refunds will be made to the mortgage account. I assume (guess) that the amount will be based on the period of time the account has been impacted - so a maximum of 2 and a half years. Which, if I'm right, would mean some borrowers would see their debt reduced by 2.5%.

    I would also assume that the SVR will remain at 3.5% (guess).

    So by paying up in April they will cap any liability to longer term payments (guess).

    If you are affected, a letter will be sent to you during April. This letter will explain whether or not a payment will be credited to your mortgage, and what the value of that payment will be.
    If though, you have a question that is not answered then please call 0800 1412146
    The update seems to imply it is merely a 'goodwill payment' for not being so clear about it, as opposed to an actual refund? It's all a bit legal-speak for me
    It is legal speak. Halifax can argue that the T&Cs allowed for them to do what they did. The regulator could argue it wasn't clear. If it went to court the decision could reasonably go in favour of Halifax as they stuck to the letter of their T&Cs.

    The solution sounds like a way of capping the cost, removing the risk of Halifax losing and also trying to get a bit of good PR out of a situation that would otherwise have dragged on for years.
    Last edited by opinions4u; 21-02-2011 at 12:48 PM.
    • crispy_chris
    • By crispy_chris 21st Feb 11, 12:40 PM
    • 483 Posts
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    crispy_chris
    • #9
    • 21st Feb 11, 12:40 PM
    • #9
    • 21st Feb 11, 12:40 PM
    The update seems to imply it is merely a 'goodwill payment' for not being so clear about it, as opposed to an actual refund? It's all a bit legal-speak for me
  • senza7
    Hi
    Can anybody tell me does this effect me?? I took a 5 year fixed mortgage april 2006 and on my terms says it will revert to SVR 2% when terms ends april 2011? Does this mean i will be paying 3.5%??
    angie:-)
    Last edited by senza7; 21-02-2011 at 1:26 PM.
  • chronosman
    Does anyone know if this is likely to affect other banks and building societies? I had a similar deal with another bank where I am still stuck on a massive and practically usurious SVR (currently BoE base plus 4.49%). I guess it all depends on the wording on the whether there is a cap or not?
    • bell
    • By bell 21st Feb 11, 1:49 PM
    • 303 Posts
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    bell
    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.

    What affect will this also have on future payments. I will now have less money to pay over the remaining term. I presume the monthly payment will adjust slightly to reflect this.
    Total Value of wins in 2009: 900 appox. 2010: 730

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    • beecher2
    • By beecher2 21st Feb 11, 2:00 PM
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    beecher2
    Isn't this only for people who sorted out their mortgages through the Bank of Scotland?
  • Mandark
    Hi
    Can anybody tell me does this effect me?? I took a 5 year fixed mortgage april 2006 and on my terms says it will revert to SVR 2% when terms ends april 2011? Does this mean i will be paying 3.5%??
    angie:-)
    Originally posted by senza7
    I think you are included based on the official wording below. Edit: No I think you are not now. You're still on fixed term. I miss out as I had my offer in April 2008 and reverted to SVR in April 2010.
    1. Does this affect me?
    If you took your Halifax mortgage out with us following receipt of an offer between 20th September 2004 and 16th September 2007, you will have received a mortgage offer which had a summary of the cap.
    If you remained on the same mortgage conditions on 1st January 2009, you are affected and will be sent a letter during April. The content of that letter will depend on your individual circumstances.
    http://www.halifax.co.uk/mortgages/help-and-advice/existing-customers/Halifax-Standard-Variable-Rate-announcement/
    Last edited by Mandark; 21-02-2011 at 2:44 PM.
    Prof planning and public rights of way person. Studies all things tech!
    • debtfree2016
    • By debtfree2016 21st Feb 11, 2:05 PM
    • 323 Posts
    • 88 Thanks
    debtfree2016
    at last some financial justice.... shame its not going in the pocket...
    Never make assumptions always ask questions>>>>>
    • beecher2
    • By beecher2 21st Feb 11, 2:07 PM
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    beecher2
    I think you are included based on the official wording below. I miss out as I had my offer in April 2008.

    http://www.halifax.co.uk/mortgages/help-and-advice/existing-customers/Halifax-Standard-Variable-Rate-announcement/
    Originally posted by Mandark
    I don't think so because of this

    3. How will you decide who gets a goodwill payment?
    Payment will be made to customers that received a Halifax mortgage offer between 20th September 2004 and 16th September 2007, and have been paying SVR at any point since 1st January 2009.
  • Mandark
    Oops agree Beecher. Will edit.
    Prof planning and public rights of way person. Studies all things tech!
  • PDCE
    Halifax tracker reverting to SVR
    Does anyone know if you have a Halifax tracker taken out in July 2004 that reverted to SVR in July 2006, is this covered and compensation owed?
    • beecher2
    • By beecher2 21st Feb 11, 2:20 PM
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    beecher2
    Does anyone know if you have a Halifax tracker taken out in July 2004 that reverted to SVR in July 2006, is this covered and compensation owed?
    Originally posted by PDCE
    Not from what they say on their website - your deal was a few months too early.
    • payless
    • By payless 21st Feb 11, 2:32 PM
    • 6,608 Posts
    • 2,361 Thanks
    payless
    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.
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