View more on these topics

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.”

Recommended

Taking advantage of the retirement annuity rules

Retirement annuity contracts are not subject to the new defined-contribution tax regime rules but retain their existing tax rules. There are three main areas of consideration for individuals holding retirement annuity contracts.Ability to pay higher contributions than to a defined-contribution tax regime schemeAlthough higher contributions may normally be paid to a defined-contribution tax regime scheme, […]

Skipton 4-year stepped discount (85% LTV)

Type: Discount mortgageDiscounted term: To March 2006Discounted rate: Four-year stepped discount. 2.30 per cent in year one; 1.15 per cent in year two; 0.50 per cent off variable in years three and four.Payable rate: 3.40 per centMinimum loan: £25,000Maximum loan: NoneIncome multiples: 3.25 principal, 2.5 combined Features: Free MIG, daily interest, overpayments, holiday scheme.Arrangement fee: […]

Sun Bank launches buy to let range

Specialist lender Sun Bank has launched a buy to let range of products including two year fixed rates from 4.99 per cent and discounted rates from 4.34 per cent.The new range includes a buy to let for beginners, one for the experienced landlord, an ex-pat buy to let, foreign national loan, corporate product, offshore company […]

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 […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment