Are you owed a Halifax mortgage refund?

House in bubble wrap

Halifax is to give goodwill payments to thousands of customers after admitting "confusing" them over mortgage payments.

The bank, which is now part of the Lloyds Banking Group, raised the cap on its standard variable rate (SVR) from 2% above base rate, to 3% above based rate in January of 2009.

The cap only applies to borrowers who are paying the SVR and have an early repayment charge. However, this was not made clear in paperwork provided with mortgages given between September 2004 and September 2007.

The bank informed those customers that were covered by the cap about the changes. But many customers wrongly believed they were also covered by the cap as a result of the paperwork they received.

Now the bank admits it was not clear enough with its customers and has struck a deal with the Financial Services Authority, promising to "review and redress" the situation.

Customers who were covered by the cap will receive £250 while those who weren't but thought they were will receive a discretionary payment.

"Many Halifax customers will have missed out on cheaper mortgage payments because Halifax changed its SVR cap when interest rates fell to historic lows," says Melanie Bien, director of independent mortgage broker Private Finance.

"While Halifax reserved the right to make this adjustment in its terms and conditions, the fact that many borrowers were not aware of it because it wasn't in the offer documentation they received, leaves Halifax on shaky ground.

She adds: "Borrowers may have chosen a different mortgage at the time if they had known, so Halifax must now compensate them accordingly."

Halifax is set to contact any customers who were affected by the rate increase without warning.

Let us know if you’ve been affected by Halifax's blunder below

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Your Comments

Yes I complained to the Halifax about this and got a letter back saying that they were within their rights to do this. I told them they didn't inform me in terms with their mortgage agreement and their answer was that they advertised it in their leaflets and in the press. In the end I gave up.

how do i know if i am eligable for a mortgage refund

how do i know if i am entitled to compensation. will the halifax inform me, and when will i here

I have just had £1200 deducted from my Mortgage to cover this

We've just had a letter confirming £3,175 will be credited to our mortgage account as a 'goodwill gesture' ..................

I recieved nearly 3k, they will pay you the amount owed by cheque it does not have to come off your morgage.

Hope this helps

I've had a letter saying I've had a deduction and called the Halifax to check my understanding of the letter. Apparently they will not make the deduction from the mortgage until Bank of England Base Rate changes!!!! I think I'm right to assume they are still then charging interest on the balance that they say they will credit back! You want to call them and check!

I have just had £3400 deducted off my mortgage.

I am still not sure why.

I received a letter from Halifax on Friday saying they had credited my mortgage with £2500. In disbelief, I checked and sure enough £2500 had credited to my mortgage. Great way to end the week.

I have just received a "goodwill" refund. What I can't find out is how the sum has been calculated and on what basis. Does anyone else know? Has anyone challenged the amount as it does not look like a full refund?

I worked out that I was due £4500. I spoke to Halifax as I hadn't yet received a letter. They confirmed the amount and are sending a cheque within the next 2 weeks.

The maths I used:

Total mortgage amount x 0.01

Divide by 12 (works out how much extra you were paying each month)

Then x that by the number of months you have been on the SVR

Well I haven't received anything yet and I had better as I complained about this (see first entry!) Mind you I did pay off my mortgage in full in August 6 years early. I have been banking on getting at least £250 as I've just had a holiday, maybe I ought to give them a ring.

I have had a letter today from Halifax saying that as a goodwill gesture payment of £250 have been credited to my morgage account. Im wondering if any one can enlighten me to why I have recieved so little? as It clearly states in their letter the Halifax SVR dates back from september 2008?

I have just received a refund on my mortgage should I accept or take legal action for not explaining the terms and conditions. Also they should apply a percentage payment on the over paid monies over the term as interest. I could have invested this money in an isa moved to a more cost effective mortgage or invested in stocks & shares with this cash?

Hi, I have received a letter from Halifax saying I would be credited £250 as a goodwill gesture into my mortgage account, I was very happy with this until I did this google search, using the above math I should be entitled to more my mortgage is £73k and have been on SVR for 18 months, should I contact them asking for more or just be happy with the £250?? Thanks in advance

Ive rec'd a £250 goodwill letter but im not happy with that, ive was on a 5 year fiixed rate mortgage from April 2005 am i entitled to more than the £250 ? and if so how do i go about tackling them?

Just had a letter through today, knocking off £1800 of my mortgage.

I have just received a letter telling me I have been credited £520.00. However, it goes on to explain I have been paying a rate based on Halifax SVR, but the cap did not apply to my mortgage, so I was not a locked in customer. So if thats the case why did I get the refund?

I also recd a letter saying they will credit £5300 to my mortgage account. I have called Halifax and asked them to send a cheque.

I thought I would also get a lower rate applied now...since they should have not changed the cap any ways. Does anyone know what the situation is with that..



I have received a letter stating they are to pay £1745.00 to my mortgage account. Can i request this amount in cheque instead or is this just for customer s who have switched mortgages and no longer with Halifax???? Tina

The number to call is 08457 27 37 47 and you need your mortgage roll number

Cheques are available as an alternative to having the credit applied to your mortgage

is this true? we are owed 3.5k spk to halifax on the phone and they made no refernce to this..

i have just recieved a goodwill payment of £885 on a mortgage of approx £40,000, the cap did not apply to me so how do i now if this is the correct amount ?

I received £3300, letter came yesterday and I called them today for a cheque which will take up to 14 days, im still with the Halifax so was happy at the surprise windfall.

Has anyone had any communication from Halifax if you no longer have your mortgage with them but qualify under the criteria? I was under the SVR from December 2005 until last year when my mortgage was discharged (moved) but I stil have current accounts etc with them. As far as I can see I am eligible but have not received a letter as yet? Anyone else in the same position?

we have had our morgage with halifax for some years and dont quite understand if we are owed compensation or not.

You should be if you took out your mortgage between the dates specified and it was still in force in January 2009. I paid mine off in August last year and I should get it but they said they are doing the ones who still have mortgages first. they said I should get it by the end of this week. We will see.

I just had the £250 credited to my mortgage - I really do not understand the letter - are there any grounds to challenge this amount? Thanks

Yes. In the same position and I'm slightly sceptical about how much effort they will make to contact people who have subsequently moved their mortgage elsewhere.

I got a Halifax mortgage fixed for 2 years in 2007 then went on to variable rate. They wrote a letter saying that I would receive a deduction of £2730. How do I calculate that this is the amount I am owed? Thanks for your help

We had our mortgage from November 2006 until August 2009 - haven't heard anything yet

I am due a refund for a close mortgage. Despite having rung Halifax several times I have still not heard anything from them.

Rang this number thanks, and got a cheque for 2k coming our way!! Thanks

Just received £250 from the Halifax should I cash it or hold on?

I've just had a call from mother in law (80 miles away!) to say she's received cheque for us through post with £555 refund! We moved house and mortgage provider 20 months ago!! God knows why they sent it to her (addressed to myself!) as we have never lived at their address!!! I'm sure they could have managed to find our current address!!

hi me not with halifax anymore,moved from them about a year ago,ive just had a good will cheque sent to me from halifax of £220,dont now weather to cash it as i might be owed more??

Ive just recieved a cheque today for £435.00 for a Mortgage I rapaid and moved to another lender around april 2010. My outstanding balance was for approx 70K.....
Im going to get an independent review of this figure and how its calculated the term "goodwill gesture" makes me uneasy!!!!

Myself and a friend of mine have both recieved Halifax goodwill cheques. SHe banks with Halifax and her cheque was for £1800. Her cheque has bounced this morning. I payed mine in Friday and its due to clear this Thursday. Iv looked for anyone else on such forums who has had the same problem but due to the process being in its early stages, there isnt, yet. Im concerned mine will bounce too. Has anyone else had such bother? Thanks.

my cheque was for a measly £5. I am definitely going to try for more. £5? What is the point?

Just had a cheque for £250 from Halifax. We had our mortgage from September 2007 until December 2010 and for the last 12 months were paying SVR at 3.5% instead of 2.5%. Cost us an extra £2400. They did inform us near the end of fixed rate it would be higher rate. Are we due the full refund?

I rang Halifax again and have now been told that it will probably be the middle of June before they refund those on mortgages that have been closed.

I received a cheque from Halifax for £20 - don't know if this is because my mortgage is no longer with them? Also I'm completely in the dark as to what the impact on me was so don't know if I'm due more or not.

Just received a letter from halifax with a cheque for £10. However....if I use the calculation given by Dan above then I should have been paid £146.48. Total outstanding mortgage amount £87,889.30 x 0.01 / 12 = £73.24. Payments charged at SVR started 1 Jan 2009, I closed the Mortgage account in March 2009 (March monthly payment was refunded). So for Jan & Feb 2009 = £146.48. Does that make sense or am I just being greedy?!

My joint mortgage with my ex -husband was not affected but a goodwill gesture of £140 was recieved by my EX sent to his address where he lives and has a joint mortgage with his new partner. I did not recieve a letter direct although I have a mortgage with them myself. I was horified that the letter only went to him. I will be making a complaint.

I changed my mortgage in Dec 10 to HSBC but I have just received a cheque for £1895 today. Not sure how they arrived at this figure.

I've just spoken to the Halifax. I received a pyment of £485. They sasid this has been calculated on 1% of the SVR balance on 1/1/09. My mortgage was closed with the Halifax in August 09 and I no longer have any paperwork relating to my mortage with them. I have requested that they send me a breakdown of what mortgage I had with them and the balance on 1/1/09 that the SVR applied to. THey said they will send it to me and I can then calculate the ammount. I am confused as to how it is only £485 when my mortgage was for at least £80k at that time? £485 isn't 1% of approx £80k?????? I just rang the free phone number on the letter and they transferred me to someone else who dealt with it. YOu need to know your balance on 1/1/09 that had the SVR applied to it. I'm thinking mine may have only had a % of the total applied to it. All very confusing as I don't know why I would have asked for a mortgage where a certain % was on SVR and the rest wasn't. I'll post again when I know more. Good luck everyone! Its confusing!!!!!

Woop woop!

I received a completely unexpected £2,475 cheque this morning! Over the moon! I hadn't even been aware of the dispute so this is just a complete bonus!

Now... What to do with it?! Savings, or a diving trip to Egypt for me and the Missus?!

Yep £2,020 just arrived by cheque. Still not sure why. We were fully aware of our deal and quite happy with our mortgage which we moved last year.

Nice Friday bonus!

We had a cheque for £1950 and had a lovely surprise as were unaware of this whole saga. Reading these posts, I can't believe how uncontented some people are!

I had a mortgage from 2005 to Feb 2010 paying the SVR. I have recieved a good will gesture of £620.00 by cheque. My mortgage was for approx 60 K. Can anyone tell me if i should be entitled to more as i could do with it.