Information about the announcement on our Halifax Standard Variable Rate
In April, we wrote to some of our Halifax mortgage customers who had been sent a mortgage offer between 20th September 2004 and 16th September 2007 and still held that mortgage in January 2009. Wording in the mortgage offer document sent during that period may not have explained certain details as clearly as it could have.
The details were in relation to the summary of the Halifax SVR cap which was included within the mortgage offer document. We wrote to those customers to ensure that they were fully aware of what the SVR cap is and how it relates to their mortgage.
We are now writing to a further group of Halifax mortgage customers. These include customers who were sent a mortgage offer between 20th September 2004 and 16th September 2007 and then subsequently completed a Further Advance, Transfer of Mortgaged Property or Product Transfer based on an offer dated between 16th September 2007 and 9th August 2008, which stated that they remained on the same mortgage conditions.
Customers do not need to take any action. We are now proactively writing to these Halifax mortgage customers to explain the changes to the cap and how it has affected their mortgage. Some customers will receive a payment to reflect the change in the cap and/or the goodwill payments on the same basis as those made in the first mailing. The letter sent will be specific to each customer’s mortgage and fully explain their situation and how they have been affected.
This continues the commitment we gave earlier in the year to ensure that all our relevant customers have a clear understanding of how the SVR cap works.
Below is a list of questions and answers we have prepared. If you have a question, that has not been answered here, please check back soon to see further updates.
1. Does this affect me?
If you took your Halifax mortgage out with us after being sent an offer between 20th September 2004 and 16th September 2007, you will have received a mortgage offer which had a summary of the Halifax SVR cap.
If you were sent an offer during this period you will either have received a letter from us during April or will receive a letter from November unless one of the following has occurred:
1. You moved onto new mortgage conditions before 1st January 2009, that did not contain the cap.
2. You repaid your Halifax mortgage before 1st January 2009.
1st January 2009 is relevant because the Halifax SVR was only increased to more than 2% over Bank of England Bank Rate (the original level of the SVR cap) from that date. Our letter will explain how the cap has affected your mortgage.
2. Will I get a payment and how much will it be?
That will depend on the specific circumstances of your mortgage. However, you do not need to take any action at this point. If you are affected, and you still have your mortgage with us, you will be sent a letter by the end of December. If you have closed your mortgage your letter will be sent to you by the end of February 2012. This letter will explain whether or not a payment will be credited to your mortgage and what the value of that payment will be.
3. What if I want to transfer to a new product now? Will I lose any entitlement I might have to a payment?
No. If you are entitled to a payment, transferring to a new product will not make a difference.
4. I think I am affected by this because I used to have a Halifax mortgage, but I’ve repaid it. How do I know if I’m included?
We will be writing to all affected customers including those who have since repaid their mortgage account with us. We’ll be writing to these customers from January and customers should receive their letter by the end of February. A cheque will be included with the letter for those customers due a payment.
5. Why did you increase the cap?
The terms and conditions allow us to vary the cap in certain conditions. We changed the cap in October 2008 because of significant increases in the cost to us of borrowing the money we lend to mortgage customers.
6. What if I want the payment paid by cheque?
All payments will be applied to the mortgage balance in the first instance. Please contact us on the number shown within your letter if you would like to receive the payment by cheque.
7. My mortgage is in arrears, will I still get the payment I’m entitled to?
If you are eligible, for a payment, you will receive a letter with the relevant details by the end of December. The payment will be credited to the mortgage account, and will reduce the arrears balance first.
8. If I want to overpay a further 10%, does the payment go towards this amount?
No, you are able to overpay by a further 10% as the payment is not included as part of this allowance.
We will be updating these Q&As as our customers ask further questions. If you have questions that are not answered here then please call the number contained within your letter.
If you are affected and you still have your mortgage with us you will receive a letter by the end of December and this will contain details of your situation. If you have closed your mortgage you will receive your letter by the end of February 2012. You do not need to take any action now but if you do have a question then please call 08457 27 37 47, option 1.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
