TENS of thousands of Halifax mortgage customers will be paid £20 after the bank overcharged interest on their loans.
The issue, which dates back to 2010, affects borrowers who have overpaid their mortgage, paid weekly or made one-off payments.
Halifax says the “vast majority” of affected customers overpaid by less than £10, but it’s reimbursing all customers with a £20 cheque.
The bank won’t tell us how many people are affected, but consumer website MoneySavingExpert.com says tens of thousands are believed to be due a refund.
All but a “handful” of affected customers have been written to – including those who have since switched away from Halifax or paid off their mortgage.
The remainder will hear from the bank in the next few weeks.
How to find the best mortgage
FINDING the right mortgage is all about your individual circumstances. Here's some advice on what you should keep in mind:
- Decide what kind of mortgage you want: a fixed deal means you’ll know exactly what your mortgage will cost, but if interest rates fall, you won’t see your payments drop. A variable deal means your costs will fluctuate, but only because of economic changes, rather than decisions by the lender.
- Shop around: there are big differences between mortgage deals, so make sure you compare costs. Also check whether there are any cashbacks or other offers. Here websites such as MoneySuperMarket and Moneyfacts may come in handy.
- Calculate your total costs: look beyond the headline interest rate and take into account all the fees you have to pay, such as arrangement fees, mortgage valuation fees and insurance fees.
- Consult a mortgage broker: if the flurry of options are confusing, a mortgage broker can help you find a deal that best suits your personal circumstances. Just make sure that you use an independent company or adviser.
If you think you may be affected but haven’t heard from the lender, you can contact it on 0345 850 3705.
A spokesperson for Halifax said: “We have identified a small number of mortgage customers whose payments were not applied correctly, meaning they may have paid slightly more than they should in interest.
“We have written to impacted customers to apologise and make a payment of £20 to ensure no financial detriment.”
More on mortgages
And if you already have a home loan, here’s how to pay off your mortgage five years early and save TENS OF THOUSANDS of pounds.
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