chocolate_o_brian

iTrader: (22)

I got a letter from Halifax on Saturday morning. Long story short, they've knocked nearly £2,500 off my mortgage balance. This is because apparently they were charging me 3.5% whilst interest rates are 0.5%, and were supposedly only allowed to charge 2% over base rate. This is only since I came off a 5 year fixed rate back in March 2010. I was pleasently chuffed as I was/am bordering negative equity on a mortgage around £82,000.

I assume my payments will go down now too as I'm still on the SRV (standard rate variable).

Went into branch to check it wasn't a hoax and a sheepish looking woman confirmed it was in deed 100% accurate, almost as if she'd had others in asking the same thing

peter zippy reid

iTrader: (25)

Im with halifax hope i get this aswell

what would scooby do

Got mine about 8 months ago

chocolate_o_brian

iTrader: (22)

So they could have saved 8 months of interest and interest on interest if they'd got in touch with me then

Bargain, cheers Adam

classic Subaru Si

Is this just the Halifax doing this, or will others have to follow suit??

chocolate_o_brian

iTrader: (22)

Well this is the interesting thing. I'm on the phone to Halifax as I type this as I wanted to know about reduced monthly payments because of this interest thing. They've said my account is technically in advnace by over £1500 so I don't need to make any payments till April next year, but my payments will remain the same (approx £357 pcm) there after.

Edit: Apparently between Jan 2010 and Dec 2011 they have worded something in the T&C's of my mortgage contract wrong. So basically breaking the contract with regards to the interest rate they should have charged me. This is why after the account is back into sync the payments will remain the same as this "cap" of interest over the base rate has changed. Useful to know if/when I wanna negotiate another mortgage deal I suppose.

Trout

iTrader: (1)

Contract is invalid - cancel mortgage and house is yours

chocolate_o_brian

iTrader: (22)

Is there any serious truth to this? Changes don't occur till the end of Dec. Pm if necessary David.

EddScott

Doubt it very much. The amount of people this has happened to I'd have thought this will already have been tried.

There was a case where a guy stopped paying his mortgage and the bank just didn't notice for years. When the bank finally noticed it was decided I guess in court, that the bank had taken too long to react and the guy got the house for free (ish)

brendy76

iTrader: (6)

With the Halifax myself, mortgage of around 42k left but no letter.

subaruturbo_18

If there is then i doubt they will write off that much debt...Would just start a new contract/mortgage arrangement at best....But what do i know, i'm just a superstar DJ

alcazar

iTrader: (2)

Andy, does it say WHY they can't charge more than 2% over base rate?

Spec'c'57

iTrader: (1)

Oh were with Halifax too, have £160k left on ours, wonder if we will get anything.

http://www.telegraph.co.uk/finance/p...-on-rates.html

cookstar

iTrader: (6)

Happy days, I've got over £500k with the Halifax. Better get home and do some reading.

Gear Head

iTrader: (2)

Our fixed deal with Halifax ends in September next year.
Our contract states that currently, when our fixed rate of 4.5% ends, we will be charge 3.5% (standard variable rate). Is this not the case now?

Gear Head

iTrader: (2)

After doing some research, this applies to mortgages on SVR between 2004 and 2007. From 2008, Banks can now charge 3% above base rate, but they were supposidly charging at 3% when it should have been 2%.

chocolate_o_brian

iTrader: (22)

Yes that's what mine is now. After some investigation I think the issue is that in the contract they stated they weren't going to charge over 2% over the base rate but were indeed charging me about 3% over. Now the wording has been changed and will come into force at the end of December.

I think that's the short version. I've double checked any everything is legit and I received apologies on the phone too so they know they've done wrong...

chocolate_o_brian

iTrader: (22)

Bingo, and due to how my fixed rate was set up and then ended, they've fcuked up and decided to amend, obviously to my advantage. In credit by a substantial amount and a sizeable amount lopped off the mortgage balance as a good will gesture.

My son, me and the mrs will have a nice christmas now with some put away for new year. Scoob might get a couple of treats too Hint, Bob Rawle

alcazar

iTrader: (2)

Hint: driving lessons for the Mrs.........

J4CKO

iTrader: (1)

I think they have taken it out of my ISA's judging by the performance, how to turn 14 grand into 13 over four years, way to go Howard !