The Financial Ombudsmen have confirmed that they are receiving more complaints from the public about Halifax offering dual mortgage rates to different types of customer.
In simple terms, they were offereing reduced rates to new borrowers whilst leaving existing borrowers on higher rates. The Ombudsmen ruled this unfair.
Halifax tried to close the issue by offering £7m in compensation to 30,000 borrowers. It said that it would pay £500 to people who complained before 31/01/02, this numbered some 10,000 people and would offer £100 as a goodwill gesture to 20,000 other borrowers.