Managing your mortgage

Need help with your current Halifax mortgage?

How you manage your mortgage depends on your mortgage account number. You'll have either a 14 digit account number or it'll start with 'A/'. Your account number may have recently changed. Check your latest mortgage statement or sign in to Online Banking to view your mortgage details. If you're not registered for Online Banking yet, it's easy and only takes about 5 minutes. Find out how to register.

This guide is intended for use by customers with a 14 digit account number. If your account starts with 'A/' and you've a servicing query please call us on 08458 50 37 05.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Overview

How does my mortgage account work?
How is my mortgage interest calculated?
Can I rent out my house?
Have I been charged a mortgage account fee?
Will I have to pay any early repayment charges?
Can I move home and keep my current mortgage?


How does my mortgage account work?

Your mortgage may be a combination of different repayment methods with different interest rates over different mortgage terms. If so, your mortgage will be split into multiple parts called sub-accounts. The majority of our customers will have a sub-account 01 which is their main mortgage and a sub-account 98 which holds fees.

Each sub-account has a separate monthly payment that we total before collecting the full amount from you each month. When we receive your total monthly payment, we split it and give each sub-account the amount it needs to ensure you repay your interest charges for that month. For repayment sub-accounts, we ensure that an amount goes to reduce the balance so that you fully repay it by the end of the term. Remember, for interest only sub-accounts the balance doesn't reduce as you're only paying back the interest and it's a requirement that you have a repayment plan in place. Find out more about the different ways of repaying your mortgage.

If you pay more than your monthly payment, we'll put what you pay towards each sub-account in the same proportions that we apply your full monthly payments to those sub-accounts, unless you tell us otherwise. Find out more about how to allocate your additional payment to a specific sub-account.

Worked example

If your mortgage consists of two sub-accounts and your total monthly payment is £400, of which

  • £100 is the monthly payment on sub-account 01
  • £300 is the monthly payment on sub-account 02

We calculate what percentage of your total monthly payment is made to each sub-account, as follows

Payment on sub-account 01 £100 / Total monthly payment £400 x 100 = 25%
Payment on sub-account 02 £300 / Total monthly payment £400 x 100 = 75%

If you overpay £100 on top of your regular monthly payment, we'll apply £25 of the overpayment to sub-account 01 (overpayent of £100 x 25%) and £75 to sub-account 02 (overpayment of £100 x 75%).

Find out how to make additional payments.

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How is my mortgage interest calculated?

The interest on your mortgage is calculated either on a daily or an annual basis. Check your annual statement to find out which method applies to your mortgage. All product rates listed on our website today are on daily interest. If you're currently on annual interest and wish to change to daily interest please call us.

Daily interest

Daily interest is calculated by charging interest on the amount of your outstanding mortgage, until you've paid it off, on a daily basis. We start charging interest:

  • on any money we lend you from the day we lend it to you; 
  • on interest from the day after we add it to your mortgage;
  • on a charge from when we add it to your mortgage; and
  • on a cost from the start of the second month after we add the cost to your mortgage - so that you can avoid interest charges by paying it off before then.

Any payment that you make will reduce the balance and therefore the amount of interest you are charged from the day that we receive it. We'll add the interest for each month to what you owe at the end of the last day of that month. We start charging interest on that interest from the first day of the next month.

How we calculate daily interest

For each month, we look at what you owe at the very start of the month. Then we look at anything we need to add to what you owe, such as a charge, or anything you pay off, say through a monthly payment, during that month. We'll calculate your interest for the month as follows:

  • (what you owe at start of month) x (yearly interest rate) x (days in the month)
    PLUS
  • (any added amount) x (yearly interest rate) x (remaining days in month, including the day of addition)
    MINUS
  • (any payment) x (yearly interest rate) x (remaining days in month, including the day of your payment)

We divide the total figure by 365 (366 in a leap year). We do our calculation to four decimal places at each step. We round up the result to the nearest penny to give you your interest charge for the month.

For example:

Someone owes £100,000 on 1st June, and on 16th June they make a payment of £20,000. Their yearly interest rate is 6%. On that basis, we work out their interest for June as follows.
£100,000 x 6% x 30 (being the number of days in June) = £180,000.0000
£20,000 x 6% x 15 (being the number of days from 16th to 30th June) = £18,000.0000
£180,000.0000 - £18,000.0000 = £162,000.0000
£162,000.0000 / 365 = £443.8356

Total interest charge for June = £443.84

Annual interest

Annual interest is calculated and added to your account once a year, on the same date, and is based on the amount of your outstanding mortgage at the start of the mortgage year. Although your mortgage balance may reduce throughout the year as you make your monthly payments, the balance on which interest is charged doesn't change until your mortgage account year starts again.

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Can I rent out my house?

If you’re considering letting your property for a short period then we may be able to help by granting you Consent to Lease for up to 12 months.

Eligibility Criteria

  • Mortgage open for at least 6 months
  • Mortgage payments up to date
  • The monthly rental payment must cover the mortgage payments and any outgoings associated with the property (i.e. council tax, buildings and/or contents insurance, utilities, letting company fees). If not you need to be able to cover any shortfall.
  • The tenancy contract must be an Assured Shorthold Tenancy (AST) and for a maximum term of 12 months in England/Wales and 6 months in Scotland/Northern Ireland

Exclusions

  • Proposed tenant, or anyone else living in the property will have Diplomatic Immunity
  • Property currently used for business or commercial purposes
  • Shared Ownership/Shared Equity property unless written agreement from the Local Authority/Housing Association/Registered Social Landlord can be obtained
  • A Payment Holiday is currently in place on the mortgage
  • If you're on the Help to Buy Scheme you'll not be eligible for Consent to Lease unless you are HM Forces regular or reserve forces personnel. HM Forces regular or reserve forces can apply for consent to let their property for up to 6 months prior to occupying

To apply

You’ll need to have details available of the property related monthly outgoings along with rent to be charged. Once we’ve confirmed your eligibility we’ll send you an application form by email or post for completion and signing by all mortgage holders. Following receipt of your application form we’ll send you a consent letter which confirms when the 12 month consent period will expire as well as the relevant terms and conditions which will apply.

A few weeks before your Consent to Lease is due to expire we’ll write to you so that you can either confirm you are no longer letting or if you are re-applying for Consent to Lease. A new application form will be required and this will be subject to our letting policy in place at that time.

We don’t charge a fee for Consent to Lease and currently as a concession you may remain on your current mortgage product for the 12 month consent period. If you let your property without our consent we can apply an added rate of interest as we would treat this as an Unauthorised Tenancy.

To apply you’ll need to contact our Consent to Lease team on 0845 6009026.

If you want to stop letting the property you’ll need to let us know by calling the Consent to Lease team on 0845 6009026. You’ll be asked to send us evidence that you are back living in the property. Full details of acceptable evidence will be provided by the Consent to Lease team.

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Have I been charged a mortgage account fee?

The mortgage account fee is an interest-free fee which is charged on new mortgage completions. It doesn't apply if you're switching to a new deal or borrowing more against your existing Halifax mortgage. It covers the setting up, routine maintenance and closing down of the mortgage account. If we charged you a mortgage account fee when your mortgage completed, it'll be debited to sub-account 98. You'll be able to see this if you sign in to Online Banking to view your mortgage details or it'll be on your annual statement with the description "Mortgage account fee". If you're not registered for Online Banking yet, it's easy and only takes about 5 minutes. Find out how to register.

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Will I have to pay any early repayment charges?

We offer different types of mortgage products with different interest rates. With some of these there may be a charge if you repay all or part of your mortgage within a certain period of time. We refer to these as early repayment charges. Details of any early repayment charges that apply to you, and when they may be charged, are set out in your mortgage offer document or you can call us.

If early repayment charges apply, the charge will be based on the amount you owe when you make the overpayment to your mortgage. If you only repay part of your mortgage we'll charge you a proportion of the early repayment charge due.

If your current Halifax mortgage deal is ending and you're looking to switch to a new deal, early repayment charges are waived if there is 3 months or less to run on your existing deal. Also, if you're moving home and you take your existing Halifax mortgage deal with you, you won't have to pay any early repayment charges.

As a concession, in each calendar year you can make regular or lump-sum overpayments of up to 10% of the amount owed on each sub-account at 1st January without having to pay an early repayment charge. If the total amount you overpay during the year exceeds 10%, we'll only charge you an early repayment charge on the proportion you overpay above 10%. However, if you repay your mortgage in full within six months of making a regular or lump-sum overpayment, we'll require you to pay the full early repayment charge, including any portion which we previously didn't charge you.

Remember, as this is a concession, we can change or withdraw our 10% early repayment charge concession without notice. So, if you decide to make any regular or lump-sum overpayments, it's always best to call us and check if the policy has changed.


Can I move home and keep my current mortgage?

When moving home, you'll need to apply for a new mortgage. However, you may be able to keep your existing Halifax mortgage deal. To find out if you can transfer your existing mortgage deal to your new mortgage, you'll need to contact us.

We may also be able to arrange increased borrowing to cover any extra costs for the new property. We've a range of moving home deals available to our existing customers.

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Payments

How do I make a monthly payment?
How do I make additional payments?
How do I allocate my additional payment to a specific sub-account?
Can I make an underpayment?
Can I take a payment holiday?
What happens if I miss a mortgage payment?
How will I know if my payments have been received?
What will happen to my payment when my current mortgage deal ends?


How do I make a monthly payment?

Your total monthly payment is the amount you need to pay to ensure you repay your interest charges for that month. For repayment mortgages, the amount also goes to reduce the balance so that you fully repay it by the end of the term. Remember, for interest only sub-accounts the balance doesn't reduce as you're only paying back the interest and it's a requirement that you have a repayment plan in place. Find out more about the different ways of repaying your mortgage.

We can't take any payment if your mortgage is currently in arrears under the care of Collections and Recoveries.

Direct Debit

To set up a monthly Direct Debit

You'll need to complete a Direct Debit Instruction form and return it to us. Or, we can set up your Direct Debit over the phone and we'll write to you to confirm your Direct Debit Instruction.

Regardless of how you give us your instructions, you're still covered by the Direct Debit Guarantee.

We'll foward your instructions onto your bank authorising them to allow payments to be collected from your account. Your Direct Debit will automatically change if your mortgage payment changes. You won't need to take any action and we'll write to you to confirm the changes.
If you want to make a change to your payment date or details call us.

Direct Debit Guarantee

This Guarantee is offered by all banks and building societies that accept instructions to pay Direct Debits.

  • If there are any changes to the amount, date or frequency of your Direct Debit Halifax will notify you 4 working days in advance of your account being debited or as otherwise agreed. If you request Halifax to collect a payment, confirmation of the amount and date will be given to you at the time of the request.
  • If an error is made in the payment of your Direct Debit, by Halifax a division of Bank of Scotland plc or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society
  • If you receive a refund you are not entitled to, you must pay it back when Halifax asks you to.
  • You can cancel a Direct Debit at any time by simply contacting your bank or building society. Written confirmation may be required. Please also notify us.

Standing order

To set up a monthly standing order

You'll need to contact your own bank or building society to authorise the payment and provide them with the following details:

  • Sort code: 30 00 00
  • Account number: 00332275
  • Reference number: Your 14 digit mortgage account number followed by 00

For mortgages starting with 'A/' use your individual mortgage account number and sort code - this can be found on your mortgage statement or call us.

Payments are only sent on working days. The payment won't leave your account until the day you specified when you set up the standing order. If the standing order is due to leave your account on a weekend or bank holiday, the payment will not leave your account until the next available bank working day. You should allow up to 3 working days for a payment to reach us.

If your mortgage payment changes we'll write to you confirming the change. You'll be responsible for making the necessary changes to your standing order amount.

Over the phone

You can make a mortgage payment using your debit card for any amount between £5 and £5000 by calling us on
08458 50 37 05.

Please note we can only take debit card payments from customers named on the mortgage account. We don't accept credit cards or debit Mastercards (cards beginning with a 5).

Remember to have your mortgage account number to hand.

At a branch

Visit your local branch to make a mortgage payment over the counter.

Remember to have your mortgage account number to hand.

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How do I make additional payments?

Making regular or lump-sum additional payments to your mortgage will reduce your outstanding balance and save you interest. You can make unlimited additional payments but you may have to pay early repayment charges if they apply. Find out more about early repayment charges.

We can't take any payment if your mortgage is currently in arrears under the care of Collections and Recoveries.

Direct Debit

To make additional payments using Direct Debit call us.

Remember to have your mortgage reference number to hand.

Standing order

To set up an additional payment by standing order

You'll need to contact your own bank or building society to authorise the payment and provide them with the following details:

  • Sort code: 30 00 00
  • Account number: 00332275
  • Reference number: Your 14 digit mortgage account number followed by 00 or a 2 digit sub-account number

Find out more about how to allocate your additional payments to a specific sub-account.

For mortgages starting with 'A/' use your individual mortgage account number and sort code - this can be found on your mortgage statement or call us.

Internet banking

To set up an additional payment using internet banking

You'll need to sign in to your internet account with your bank or building society and create a payment with the following details:

  • Sort code: 30 00 00
  • Account number: 00332275
  • Reference number: Your 14 digit mortgage account number followed by 00 or a two digit sub-account number.

Find out more about how to allocate your additional payments to a specific sub-account.
For mortgages starting with 'A/' use your individual mortgage account number and sort code - this can be found on your mortgage statement or call us.

Did you know that you can view your mortgage account details using our Online Banking service?
You can see your current balance, your monthly payment, your interest rate, your remaining term and a breakdown of all your transactions. Online Banking is available 24 hours a day, 7 days a week, 365 days a year. If you're not registered for Online Banking yet, it's easy and only takes about 5 minutes. Find out how to register.

Over the phone

You can make an additional mortgage payment using your debit card for any amount between £5 and £5000 by calling us on
08458 50 37 05
.

Please note we can only take debit card payments from customers named on the mortgage account. We don't accept credit cards or debit Mastercards (cards beginning with a 5).

Remember to have your mortgage account number to hand.

At a branch

Visit your local branch to make an additional mortgage payment over the counter.

Remember to have your mortgage account number to hand.

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How do I allocate my additional payment to a specific sub-account?

If you pay more than your monthly payment, we'll put what you pay towards each sub-account in the same proportions that we apply your full monthly payments to those sub-accounts. However, you can allocate your additional payment to a specific sub-account by telling us the appropriate 2 digit sub-account number as part of your payment reference. Remember, when making additional payments you may have to pay early repayment charges if they apply. Find out more about early repayment charges.

Worked example

If your mortgage consists of three sub-accounts and your total monthly payment is £1000, of which

  • Payment on sub-account 01 £100 = 10%
  • Payment on sub-account 02 £700 = 70%
  • Payment on sub-account 03 £200 = 20%

You make a £500 additional payment using your 14 digit mortgage account number followed by 00 as the reference number. This will be split between the sub-accounts in line with your current mortgage instruction as follows:

  • Payment on sub-account 01 (10%) = £50
  • Payment on sub-account 02 (70%) = £350
  • Payment on sub-account 03 (20%) = £100

You make a £500 additional payment and want the whole additional payment to reduce your balance on sub-account 02. Your reference number should be your 14 digit mortgage account number followed by 02. This payment will be made only to sub-account 02 as follows:

  • Payment on sub-account 01 (0%) = £0
  • Payment on sub-account 02 (100%) = £500
  • Payment on sub-account 03 (0%) = £0

For mortgages starting with 'A/', please call us.

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Can I make an underpayment?

An underpayment is where you pay us less than your monthly payment. You're not allowed to make underpayments unless you've already made additional overpayments to your mortgage. You can't underpay using any regular or lump-sum additional payments that have already been used to reduce your regular monthly payment or to reduce your mortgage term.

If you need to make an underpayment to your mortgage, you'll need to call us to make the arrangements. We'll tell you the amount of your overpayments available for you to use. We can also change your direct debit for the time you want to underpay. Remember, you'll be still charged interest on your mortgage balance during this period.

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Can I take a payment holiday?

A payment holiday is where you can apply to take a break from paying all or part of your usual monthly mortgage payment but you haven't made any earlier additional overpayments against which you can underpay. Payment holidays are available for a period of one or two months and you can take a payment holiday once every three years, with a maximum of six monthly payments over the life of the mortgage.

They are available for a variety of reasons, usually to assist with a temporary change to your circumstances like a change in employment, maternity leave or unexpected or unforeseen vehicle or household expenditure. There are qualifying criteria for a payment holiday like the length of time you have had your mortgage and your loan to value.

Although mortgage payment holidays may help in the short term, if you've a repayment mortgage at the time of the payment holiday, the interest will continue to be added to your mortgage. The missed payments will need to be made up over the remainder of the mortgage term, meaning that your contractual monthly payments will increase. If any or all or your mortgage is on an interest-only basis, the interest due will be added to your mortgage balance. Your mortgage balance will increase and will need to be repaid at the end of your mortgage term - it's important to regularly check that your repayment plan is on track to provide the increased amount of money you will need to repay your mortgage. Find out more about the different ways of repaying your mortgage.

Switching to a new mortgage deal is not permitted during a payment holiday. Remember, if you don't keep your mortgage up to date, you could fall in to arrears and ultimately lose your home.

If you're interested in taking a payment holiday, call us to discuss your requirements.

Eligibility criteria

You may be eligible to apply for a payment holiday if:

  • It's been at least twelve months since you took out your mortgage with us and six months since you took any additional borrowing
  • The amount you owe does not exceed 75% of our latest valuation of your property
  • Your mortgage payments are up to date
  • You've not had previous payment holidays totalling six months or taken one in the last three years
  • Your mortgage is not conducted on a 'Consent to Lease' or 'Buy to Let' basis
  • The payment holiday isn't for financial difficulty

For mortgages taken out before 30th June 2011 or where further borrowing or a product transfer has been taken after this date, the eligibility criteria may differ to that detailed above.

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What happens if I miss a mortgage payment?

If you think you'll be unable to make your monthly mortgage payment, call us as soon as possible.  We always try to help our customers who get into financial difficulty and are struggling with mortgage repayments. Find out more about how we could help.

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How will I know if my payments have been received?

If you're registered for Online Banking, you can now sign in to view your mortgage details including your current balance, your monthly payment, your interest rate, your remaining term and a breakdown of all your transactions. Online Banking is available 24 hours a day, 7 days a week, 365 days a year. If you're not registered for Online Banking yet, it's easy and only takes about 5 minutes. Find out how to register.  Alternatively, you can call us.

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What will happen to my payment when my current mortgage deal ends?

If your current Halifax mortgage deal is ending you could look to switch to a new deal. Alternatively, you'll be automatically changed onto either the Halifax Standard Variable Rate or the Halifax Homeowner Variable Rate. Find out which rate would apply to you.

Your new monthly payment will be calculated based on your new rate.

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Statements & balance

How can I check my current mortgage balance and interest rate?
How do I get a duplicate mortgage statement?
How do I get a Certificate of Mortgage Interest?


How can I check my current mortgage balance and interest rate?

The quickest and easiest way to check your current mortgage balance and interest rate is to sign in to Online Banking. If you haven't registered yet, it should only take a few minutes and you should be able to sign in as soon as you’ve finished. You'll be able to view your current balance as well as a breakdown of all your mortgage sub-account balances. Find out how to register.

Your current mortgage balance shown online includes both debit and credit payments up to the date shown. It is not a final settlement figure as it doesn't include any interest accrued after the date shown, or early repayment charges or other fees that may be applicable to your mortgage. For an exact figure, call us and we'll provide the figure verbally or we can post it to you.

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How do I get a duplicate mortgage statement?

We'll send you a mortgage statement each year on the anniversary of the month that you took out your mortgage with us. It gives you important details about your mortgage including how much you owe, what interest rates you pay, how much interest we've charged and the payments you've made each month. Most of your mortgage information in the statement is now available to view online when you sign in to Online Banking.

If you do need a duplicate printed mortgage statement, call us and we'll get one posted out to your home address.

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How do I get a Certificate of Mortgage Interest?

A Certificate of Mortgage Interest, previously known as MIRAS 5 (Mortgage Interest Relief At Source) gives details of the interest charged and the tax relief credited (where applicable) to your mortgage account during a tax year, April to April. You can use it to help you complete your tax return or your accountant may have asked you to obtain one for the preparation of your annual accounts.

To request a Certificate of Mortgage Interest, call us and we'll get one posted out to your home address.

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Making changes

How do I change the term of my mortgage?
How do I change my repayment method?
How do I change my name?
How do I add or remove a name on my mortgage?
How do I change my correspondence address?


How do I change the term of my mortgage?

You can view the remaining full term of your mortgage and a breakdown of all your mortgage sub-account terms if you sign in to Online Banking. If you haven't registered yet, it should only take a few minutes and you should be able to sign in as soon as you’ve finished. Find out how to register.

You may want to reduce your mortgage term and pay off your mortgage earlier by increasing your monthly payments. Or, you may want to extend your term to help reduce your monthly payments. Just bear in mind that the longer you take to repay your mortgage, the more interest you'll be charged. If you're thinking about changing your mortgage term we may ask for confirmation of your income, particularly if the mortgage term extends beyond retirement age. Contact us to discuss your situation.

If you've an interest-only mortgage, changing your term will not affect your monthly payment. However, the term can be amended to coincide with the maturity of your repayment plan.

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How do I change my repayment method?

If you're thinking about changing your repayment method to a repayment mortgage or to interest only, you'll need to call us to discuss your situation. If you're wanting to change to interest only, you'll be required to provide us with evidence of your repayment plan. Find out more about the different ways of repaying your mortgage.

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How do I change my name?

To change your name on your mortgage, please visit your nearest branch taking with you the original version of your name change documentation such as your Marriage Certificate or Deed Poll.

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How do I add or remove a name on my mortgage?

If you share your mortgage with another person and want to transfer the mortgage into one name, or if you want to add another name to your mortgage, you'll need our permission. We'll need to complete an application, including affordability checks, and we'll need to see confirmation of income and expenditure for all applicants who'll be on the mortgage.

If a name is being removed we'll need to speak to the customer wanting to stay on the mortgage. If a name is being added we'll need to speak to all applicants who'll be on the mortgage.

This is a legal process and we'll charge a fee of £160 if the transfer goes through. The remaining customer will also need a solicitor to act on their behalf. To arrange a Transfer of Mortgage Property (TOMP), you'll need to call us.

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How do I change my correspondence address?

To change your correspondence address, your request should be made in writing to:

Chief Office
Barnet Way
Gloucester
GL4 3RL
TNT 027
DX 55251 Gloucester 2

The request should state why the change is required, together with a signature from all the relevant parties to the mortgage.

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