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    • dharm999
    • By dharm999 6th Jan 18, 9:32 PM
    • 303Posts
    • 236Thanks
    For info re Halifax mortgages
    • #1
    • 6th Jan 18, 9:32 PM
    For info re Halifax mortgages 6th Jan 18 at 9:32 PM
    I have only just found out, and I'm not sure how aware other people are about it, so I thought I would let other people know about it.

    I have a fixed rate mortgage with Halifax, which is part repayment and part interest only. I can make up to 10% overpayments each year. I wanted to pay down the IO element of the mortgage faster than the repayment element, so that the mortgage becomes effectively a repayment mortgage. However I am only allowed to pay a maximum overpayment of 10% of each part of the mortgage without incurring an early redemption charge.

    To give some figures, the mortgage is 260k, split roughly 120k repayment and 140k IO. Of the 26k overpayment I have made, only 14k can be applied to the IO element, when I wanted the full 26k to be put against the IO element, which I had not realised, and isn't clear from the mortgage paperwork.

    Hopefully this is of done help to others in a similar situation.
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    • Thrugelmir
    • By Thrugelmir 6th Jan 18, 10:42 PM
    • 58,881 Posts
    • 52,210 Thanks
    • #2
    • 6th Jan 18, 10:42 PM
    • #2
    • 6th Jan 18, 10:42 PM
    You have 2 separate sub (loan) accounts under the one mortgage charge. Each sub account will be subject to the applicable product terms and conditions for that part.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • dharm999
    • By dharm999 7th Jan 18, 4:07 PM
    • 303 Posts
    • 236 Thanks
    • #3
    • 7th Jan 18, 4:07 PM
    • #3
    • 7th Jan 18, 4:07 PM
    I realise that now, it just wasn't very clear from the mortgage paperwork that that was the case.
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