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tdlawyer
tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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I took out an interest only mortgage with the Halifax 14 years

Resolved Question:

I took out an interest only mortgage with the Halifax 14 years ago. Following that I took out additional funds on a repayment basis. Original mortgage was 265k on interest only for 25 years and I borrowed further several years later a sum of 110k on repayment. The Halifax is now saying that they don t offer interest only and have virtually tripled my payment as they are charging for the whole mortgage on repayment terms rather then part repYment and part interest only. Can they do that?
Submitted: 3 years ago.
Category: Law
Expert:  tdlawyer replied 3 years ago.

tdlawyer :

Hello, welcome to the website. My name isXXXXX can assist you with this.

tdlawyer :

Are you saying that they've changed the terms of the mortgage mid-way through?

Customer: Seems to have done so. My original loan of 265k has always been interest only. In fact my old statements used to separate how they calculate everything. I still. Have one letter which says that 265k is interest only and that I should hVe men's to pay at the end of the term. When I was in financial difficulties they froze the interest on the repayment part of the mortgage but added it to my capital. Now they have combined the two and they want to charge me repayment on approx 371k
tdlawyer :

Thats sounds very odd to me - it's not somthing that should be able to do at all. You cannot change the character of the mortgage from interest only to repayment without your consent. If you, at no time, have given that consent, then it should remain (in part at least) as interest only.

tdlawyer :

I think you would be on firm ground to challenge this, especially if the repayments are high and difficult to achieve.

Customer: They said that they as a bank do not do interest only now I have no objection to the 110k being on repayment basis. What do you suggest I do? I have gone through the call centre but they just give you the stock answer. They even told me to sell my flat
tdlawyer :

okay, I would suggest you write to them first, setting out yout position as you have done for me. Then, finish off your letter saying that if you don't get a satisfactory response, which you would like to be their final response, then you will refer the matter to the financial ombudsman to investigate for you.

tdlawyer :

Have a look at the ombudsman website, it's very useful, and complaints to him are free to make and he does the leg-work in investigating them for you: http://www.financial-ombudsman.org.uk/

Customer: Thank you for your help.
tdlawyer :

Is this okay? Do you want me to help with anything more?

Customer: If I have lost any of my earlier documents I can ask for copies from the Halifax can t i
tdlawyer :

Yes, you can, you should be able to get them easily enough. If for whatever reason they refuse though (unlikely), the ombudsman can obtain them anyway.

Customer: Thank you for your help it's all been very good
tdlawyer :

Thank you!

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