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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 5
    • art200380
    • By art200380 22nd Feb 11, 8:52 PM
    • 56 Posts
    • 7 Thanks
    art200380
    Hi

    I think we are one of the affected customers. It will be great if we do get the difference of the 1% interest back for those 27mths (Jan 09 to Apr 11), so can't wait for the letter to see.

    In addition does anyone know if this also means that our SVR with Halifax will revert to 2.5% (currently, until BOE base rate goes up) from April 2011 onwards? Surely they can't admit they caused confusion and refund us the additional interest paid, for a 27 month period, and then just contine charging those customers BOE base rate + 3% (not + 2%)?
  • Burridge60
    There are really some more worthy causes that could do with compensating their customers. Too many lenders with artificially high SVRs and some that even managed to get FSA approval to abandon a BoE link!

    One of those lenders now offers an "options" arrangement to take a tracker now and then switch to a Fixed Rate later on.

    Lets just hope they are still lending and don't have another funding crisis!
    I am a Mortgage Advisor
    You should note that this site doesn't check my status as a Mortgage Advisor, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • morgaln
    [QUOTE=curlygirl1971;41431050]I called them and asked if a 'Product Transfer Offer' was the same as a Mortgage Offer and would it be included in the scheme. Obviously the are just giving out generic answers at present rather than answers tailored to individuals. He told me (not quoting word for word here).....that a PTO often meant a change in terms* to the mortgage product and those change in terms if they occured within the correct period could mean that the mortgage is eligible. I asked how each case would be reviewed - does their system spit out people who fit the criteria? No - they have a team manually reviewing each case.


    The Lady I spoke to said that if the terms and conditions sent out were 'version 2, 2004' which apparently I was, then my account had a "maker" to be looked at (needless to say she may have added the marker!)
  • pompeyfaith
    Art,

    In answer to your question:

    http://www.which.co.uk/news/2011/02/halifax-to-pay-out-500m-after-mortgage-confusion-245418/

    Extract:

    The bank has been in discussion with the Financial Services Authority (FSA) about this issue for at least a year. The FSA has allowed Halifax to continue to charge an SVR of 3.5% and also set out terms under which Halifax can vary the cap in future.
    • art200380
    • By art200380 22nd Feb 11, 9:31 PM
    • 56 Posts
    • 7 Thanks
    art200380
    Opinions 4 u

    Not that I have any intention of doing this, but even following settlement, could one of these individual affected customers still take Halifax to court to test this?

    The offer letter I have here is exactly the same as the one on the previous page - which states "We can change the 2% limit but, before we do, we will give 30 days notice to customers who pay interest at Halifax Standard Variable Rate, a discounted rate or an added rate and are subject to an early repayment charge. Those customers will then have three months to repay their mortgage if they want to, without having to pay the early repayment charge. This does not apply to customers who pay interest at a fixed, capped, special or tracker rate."

    I think the whole point is it's not in black and white, hence this "goodwill gesture" by Halifax. The para, does state that they can increase the 2% limit but only for customers on their SVR, a discounted rate or an added rate and are subject to an early repayment charge. The final sentence states that it does not apply to customers who pay interest at a fixed, capped, special or tracker rate. It is definitely not in black and white.

    We took a tracker (BOE base - 0.26%) in August 2007 which expired on 30 November 2009. From 1 December 2009 we have been on their SVR (and do not have to pay a ERC to leave them once on the SVR). I would say that given the above, we are one of the customers that they should not be able to vary the margin on, but obviously did.

    Like I said I have no intention of testing this as do not have the time or resources to do so, and will happily accept a cheque for the 1% interest overpayment I have made, but would love for someone to actually test this in court on an individual basis.
    • hcb42
    • By hcb42 22nd Feb 11, 9:47 PM
    • 5,818 Posts
    • 3,538 Thanks
    hcb42
    i have had five year fixed rate, and only came off it for last payment, and am now going to remortgage elsewhere from next month or month after, so no windfall here, ah well, nice thread
    • jet77
    • By jet77 22nd Feb 11, 10:24 PM
    • 1,580 Posts
    • 7,687 Thanks
    jet77
    Hi,

    Can anyone help me out trying to figure out whether this applies to me?

    I took out a tracker with Halifax in July 2005 on a mortgage of £92k and then in April 2007 changed it to a consent to lease (still on tracker) - I've still got the mortgage now.

    Thanks,

    J
    JUST DO IT ONE BRICK AT A TIME
    PROUD TO BE DEALING WITH MY DEBTS
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  • curlygirl1971

    The Lady I spoke to said that if the terms and conditions sent out were 'version 2, 2004' which apparently I was, then my account had a "maker" to be looked at (needless to say she may have added the marker!)
    Originally posted by morgaln
    Well I can't find a copy of V2 2004, however I do have a 'Product Transfer Acceptance' with my name and roll number on it...

    'I confirm that I have received, read and understood the Product Transfer Offer issued on 3rd Dec '05. I acknowledge receipt of a copy of ....Mortgage Conditions 2004 (2nd Ed)'

    It's marked customer copy across the sig field - the Halifax must have the one with my sig on it
    Last edited by curlygirl1971; 22-02-2011 at 10:46 PM.
  • curlygirl1971
    Hi,

    Can anyone help me out trying to figure out whether this applies to me?

    I took out a tracker with Halifax in July 2005 on a mortgage of £92k and then in April 2007 changed it to a consent to lease (still on tracker) - I've still got the mortgage now.
    Originally posted by jet77
    Hi

    It only applies to those that have been on the Halifax's SVR at some point from January 2009 to date.
    Last edited by curlygirl1971; 22-02-2011 at 10:46 PM.
  • johnpac
    Im pretty sure this applies to me.
    2 year fixed rate taken out in Sept 2006.
    Ended Sept 2008. Then went on SVR until Aug 2009.
    Guess that means im owed somthing back for the Jan-Aug 2009 period?.

    Another question is will I be due a rebate for the overpayment i will have made on my Halifax TMPP Policy (Total Mortgage Protection Plan). This policy covers sickness, redundancy, critical illness etc. From what i remember this pays somthing like 125% of my mortgage payment per month.
    As i have been paying more mortgage then i should of been, i have also technically been paying more Halifax TMPP than i should. As the ammount i pay in TMPP slides with the mortage payment value.

    I prob wont ammount to much, but im sure they should be refunding this too ???......

    Opinions appreciated.
    Last edited by johnpac; 23-02-2011 at 12:50 AM.
    • getmore4less
    • By getmore4less 23rd Feb 11, 7:02 AM
    • 37,979 Posts
    • 23,564 Thanks
    getmore4less
    I think the whole point is it's not in black and white, hence this "goodwill gesture" by Halifax. The para, does state that they can increase the 2% limit but only for customers on their SVR, a discounted rate or an added rate and are subject to an early repayment charge. The final sentence states that it does not apply to customers who pay interest at a fixed, capped, special or tracker rate. It is definitely not in black and white.

    AIUI this is an extra term is in the offer letter, any other T&C that refers to the SVR.

    It seems to me they messed up the puntuation.

    what they ment to say, was something like

    "We can change the 2% limit but, before we do, we will give 30 days notice.

    Customers who pay interest at Halifax Standard Variable Rate, a discounted rate or an added rate and are subject to an early repayment charge, those customers will then have three months to repay their mortgage if they want to, without having to pay the early repayment charge. This does not apply to customers who pay interest at a fixed, capped, special or tracker rate."

    So those affected by the change immediately and had ERC could get out ofthe ERC without paying.

    Of course this did not cover those that were about to exit a fixed rate onto SVR in the next 3 months.

    I think if you want the exclusion to apply to both previous sentences then you are falling back on any any other SVR T&C's, in the general T&C or offer letter.

    THe problem for Llods and those halifax deals is that a lot of people will now be going through the T&C and offers looking for issues like this and I guess a few more might be uncovered.
  • emmajayne1982
    Quote from Which website:

    Former customers will receive a cheque. Current customers will have their mortgage balance reduced by the amount but can ask for the compensation by cheque instead.

    Would be a nice bonus if we can request a cheque instead
    • mau408
    • By mau408 23rd Feb 11, 10:18 AM
    • 168 Posts
    • 69 Thanks
    mau408
    I am pretty certain this applies to us. Anyways to provide some other background information we put in an offer on an house in May 2004 and had a first mortgage offer for a 5yr fix June 2004 (before the goodwill applicable date). However we had a revised mortgage offer for a 5 yr fix in Nov 2004 (within the goodwill applicable date) as the rates changed and took this one out as the house had only then become ready to move into.
    Obviously in Dec 2009 we popped off the fixed onto the SVR and have been on it ever since. So we are probably due the interest difference of 1% for about 1.25yrs.
    I've looked at both mortgage offers and they completely changed the format of the offers from the first to the second and the wording as already posted on here about the 2% cap is only present in the second offer.
    Last edited by mau408; 23-02-2011 at 10:43 AM.
  • clarkie82
    Does this include IF (intelligent finance) mortgages
    As intelligent finance is a part of the Halifax banking group. I was wondering if this repayment would include those people who were offered a morgage within the relevant time frame, through IF?
    • payless
    • By payless 23rd Feb 11, 11:29 AM
    • 6,608 Posts
    • 2,361 Thanks
    payless
    Regarding IF - NO

    Different offer wording, different follow on rates/SVR
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • fzr-girl
    i took out a further advance of £5000 in may 2005 fixed for 3 years then it changed to and am now on svr of 3.5% does this appy to me?
    competition wins for 2008- JOHNSONS MINI TREATS
  • pompeyfaith
    Emmajayne,

    Former customers will receive a cheque. Current customers will have their mortgage balance reduced by the amount but can ask for the compensation by cheque instead.

    Would be a nice bonus if we can request a cheque instead
    If you read back for my posts you will see that I have brought this point to the attention of members here and stated my reasons why.

    The only time thay can do this is if yiu are in arrears, if not there is nothing in T&C's that says you have to overpay
  • emmajayne1982
    Emmajayne,



    If you read back for my posts you will see that I have brought this point to the attention of members here and stated my reasons why.

    The only time thay can do this is if yiu are in arrears, if not there is nothing in T&C's that says you have to overpay
    Originally posted by pompeyfaith
    Sorry! I was just quoting what was on the Which website for information!
  • jonthedog
    Good news. I came off the fixed rate at just the right time; I make out I'm due a nice fat cheque for around £2000.

    Don't want to count my chickens, but it looks like I'll be able to buy about two thousand of them.
    • lvm
    • By lvm 23rd Feb 11, 7:52 PM
    • 1,513 Posts
    • 1,781 Thanks
    lvm
    Very chuffed they're giving the option of a cheque now (although, come on! How old-fashioned!! Nice little BACS payment would be appreciated Mr Halifax!)
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