Did you know that Halifax Building Society is now not automatically reducing the term of your mortgage if you make overpayments to your mortgage? Yes, that is correct. They now reduce the monthly amount you pay for your mortgage and not automatically reduce the term of your mortgage as most lenders do. In fact you are probably not even aware of this because they haven't actually informed their ...

I have a Halifax fixed interest rate mortgage, whilst I am able to and do over pay this mortgage, although there is a limit to the amount I can pay each year during the fixed rate period (About £13,000 I think, will differ from mortgage to mortgage). I just phoned them for this information.

Your standard monthly payment is based on targeting the mortgage reducing to zero in the final month of your remaining mortgage term. If you overpay, the capital is reduced faster and therefore the interest charged reduces (Halifax say -"we stop charging interest on any amount you overpay by on the day we receive the payment") .

The mortgage offer and your annual mortgage statement should both confirm this fact where they detail the conditions for early repayment charges and the overpayment facility. So what exactly is the conflicting information that Halifax has given you?

MLSY Posts: 53 Forumite 16 August 2014 at 1:43PM 2 separate issues making an overpayment on your current mortgage - should be no issue with Halifax to accept this reducing the term of your mortgage - will be subject to affordability and underwriting did you want do both things at the same time or just make an overpayment?

I am with Halifax and have overpaid my mortgage by 10% every January, this overpayment has never resulted in overpayment charges from my regular monthly payments and they have never amended my payments or term until i get to the end of my fixed period Thank you, it is very confusing.

Hi everyone, I'm interested to hear from anyone who has successfully reclaimed 'overpaid' mortgage interest through companies such as Trusted Mortgage Claims.

This is how the 10% annual overpayment allowance is described on my Halifax offer -

Hey all, I have a quick question. I'm looking to overpay the full 10% on my Halifax mortgage early this year. This overpayment window usually runs 1st Jan to 31st Dec every year. Later in the year, I'll be switching to a new deal, and I'm interested to know if this will reset the annual overpayment allowance. Will I be able to pay another 10%? I'd appreciate any information as to whether this ...

The maximum amount is based on your overpayment allowance. For example, if have an overpayment allowance of £30k per year (I don't know how Halifax calculate it, but most lenders do 10% of the loan amount), and your monthly payments are £1k per month, you can overpay up to £18k (meaning total payments for the year are £30k).