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Halifax pays out £7m to borrowers

Halifax is attempting to draw a line under the ombudsman ruling by offering £7m in compensation to 30,000 borrowers who complained after being barred from its base mortgage rate.

The bank is paying £500 in compensation to 10,000 existing borrowers with capped or discounted loans who protested before January 31 that they were not allowed to switch to its base mortgage rate, introduced last March.

About 20,000 borrowers who complained after this date will be paid a goodwill gesture of £100 but will not get compensation. However, several hundred thousand other customers in similar situations will get nothing.

The move has surprised IFAs, who say Halifax had ruled out blanket payouts in favour of compensating only those who complained to the ombudsman.

But they claim Halifax&#39s decision not to remunerate all borrowers – which they believe would cost £250m – could backfire as disgruntled customers look to switch to rival lenders.

Charcol senior technical manager Ray Boulger says: “The amount involved is chickenfeed compared with the £90m that Nationwide paid out. Clearly, those who have not been compensated will be unhappy and may well decide to simply walk away from Halifax.”

Halifax head of media relations Mark Hemingway says: “We have complied fully with the ruling and we believe the matter has been completely resolved.”


Taking advantage of the retirement annuity rules

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Skipton 4-year stepped discount (85% LTV)

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Investment view

I hesitate to mention the name Roddy Kohn in this column – not least because he does not mention me in the one he writes for an altogether inferior publication. However, Roddy was responsible for chairing the question and answer panel on which I sat at the first of this year&#39s AITC Forums in London […]

Get your New Year off to a flying start

Ross Jackson, Senior Marketing Manager There’s no denying that these days we expect things quickly. You might have noticed it first-hand during the flurry and rush of the Christmas period. The fact is that in a world of smartphones, social media and click and collect, most clients expect to get an instant response and a […]


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