Mortgages: Lloyds sets aside

1st January 1999

Money Marketing reported that Halifax is to write to approximately 600,000 customers from April 2011 regarding potential confusion relating to wording found in the mortgage offer document which summarises the Halifax standard variable rate cap.

The review affects borrowers who were on SVR and who had an early repayment charge in their mortgage.

The bank will offer goodwill payments of £250 to borrowers on SVR and who had an ERC as an acknowledgement that it was unclear how the cap affected their mortgage.

It will also offer a goodwill payment of the 1 per cent balance between the two cap rates to those borrowers on SVR who were unaffected by the change but thought they were.

In an announcement made to the London Stock Exchange Lloyds Banking Group said the review was with "regard to outstanding concerns with the variation of limits of some retail mortgage contracts".

Citywire reported that the wording in the mortgage offer documents received by these customers had the potential to cause confusion.

The announcement said: "The relevant mortgages were written during 2004 – 2007 by Bank of Scotland plc under the 'Halifax' brand, and through the contact programme, goodwill payments will be made to affected customers.

"To effect these goodwill payments, Bank of Scotland has applied for a Voluntary Variation of Permission to carry out the customer review and contact programme to bring it within section 404F (7) of FSMA 2000."

On Citywire JonnieB666 writes: "The wording in the FSA handbook also has the potential to cause confusion. Any chance that can be reviewed? Two chances……none & f*&k all!

Tony Clarkin said: "Regulator re- arranges the deckchairs on the Titanic (again)

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4 thoughts on “Mortgages: Lloyds sets aside”

  1. Anonymous says:

    Kim, I think you have identified a most valid point; it is easier to play the “blame game” than do anything constructive which might, further down the road, lead to all sorts of (often personal) ramifications. The thought of unity in the “big tent” called the Eurozone or even the European Community per se will be something I will not see in my lifetime. With no commitment to the betterment of the man in the street (who is seen by Brussels as having as much worth as a single termite in the nest), how can such a thing happen? EUrocrats cannot (may not) suffer bruised ego’s . it’s not in their contract of employment!

    1. Anonymous says:

      Thanks Ray, it’s nice when people endorse the comments!
      Funny you should make the single termite point, I was on News 24 (very briefly) last Friday and I used the analogy of an ant or termite nest for markets and economies generally.  Each insect does its own thing, nobody tells them what to do, they work to very simple pheromone responses, but the result is a 5 metre high mound exactly oriented to keep the nest cool by day and warm by night.  But still various Chancellors kid us that they know better than anybody else how to make a better nest out of the economy!

      1. Anonymous says:

        Kim – so true. The problem is also that even if the top dogs knew how to make a nest I’ m not sure they would know how to cool it – let’s face it, they’re giving us a grilling right now (and have done so for as long as I can remember).

  2. CosmoMontagu says:

    Exactly! Just the kind of work I am doing some research into, how we can get them all to co-operate more and argue less!

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