Do I have a claim?

By THIS IS MONEY
Updated:

 

MY Halifax mortgage was linked to the higher standard variable rate from March 2001 to December 2001. Will I be entitled to compensation from the Halifax following the Ombudsman's decision on its dual mortgage rates? The customer relations department at Halifax seems to think I have no claim. BS, Boston, Lincs

Linda Whitney writes: There is nothing to stop you complaining to the Ombudsman. The Financial Ombudsman Service (FOS) has received a significant number of cases concerning lenders that moved from having a single variable mortgage rate to having two variable mortgage rates -one higher than the other. The FOS's latest Ombudsman News points out that it has come to a final decision in three lead cases from three different lenders in favour of the borrower.

In each case the borrower had taken out their mortgage at a time when the lenders had only a single variable rate, the lender had promised the borrowers a discounted or capped rate using the single variable rate as a yardstick and while the lender now said that the higher of the split rates should be the yardstick the borrowers said that the lower rate should be the yardstick.

On the lead case concerning the Halifax, the Ombudsman's decision meant the borrower was granted compensation based on the difference in the mortgage rate when they first complained to the Halifax about dual pricing and the date the bank rectified the situation and went back to offering just one rate (February 1, 2002).

If you have not already complained to the Halifax it seems unlikely you will fall into this category, but there is no reason why you should not complain to the Ombudsman and have your case heard.

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