Following the decision of the Financial Ombudsman not to let Halifax operate a two tier system of Standard Variable Mortgage rates, Halifax have now moved to one rate across the board.
Until the Ombudsman's decision, Halifax operated one Standard Variable Rate of 5.75% and one of 5%. The lower rate of 5% was introduced last year for new borrowers and those customers not locked into the higher rate of 5.75%. Halifax have now moved to a Standard Variable Rate of 5.75% for all borrowers, meaning that customers have been penalised from both ends:the original borrowers on the 5.75% rate were penalised by not being allowed the 5% rate andthe newer borrowers on the 5% rate are now being penalised by having their rate increased to 5.75%
Halifax stated that the decision of the Ombudsman was in respect of an individual case and covered other issues, not just related to the Standard Variable Rate. As it stands, customers in a similar situation will not be automatically compensated - they will have to make their individual complaints to Halifax if they think it justified.
If you are a Halifax borrower and would like more information, please contact us.