Fighters win refund

There's good news for Halifax mortgage-holders affected by its dual mortgage rates policy who feel they have been fobbed off.

While officially the lender is taking a firm line on compensation, it appears that behind the scenes it is rolling over and paying full refunds to people who refuse to give up on their complaints and keep on fighting for what they are owed.

The Halifax has been criticised for refusing to compensate the vast majority of the hundreds of thousands of borrowers affected by its dual mortgage rate policy, which was condemned by the ombudsman in January.

It says only discounted and capped rate borrowers who complained before January 31 this year qualify for a refund of backdated interest plus an "inconvenience" payment of £150. It adds that those who complained during February get a goodwill payment of £100, and those who complained after the beginning of March get nothing.

But a very different story emerged this week. Two Jobs & Money readers who were initially fobbed off with the £100 but carried on fighting managed to get full payouts without the ombudsman even having to adjudicate. They are likely to be the tip of the iceberg.

Kay Kennedy, a Northamptonshire teacher, complained shortly after January 31 and received a "completely unsatisfactory" £100. She wrote to the ombudsman, who in turn contacted the Halifax to say she had got in touch. She also fired off another letter giving the Halifax one last chance to pay up. Sure enough, she got a cheque for £822, most of which was refunded interest. She also has a new mortgage rate, knocking about £40 off her monthly payments.

"The message is: it's worth not giving up," she says. "I just had the bit between my teeth. It was the principle."

Alan and Alison Boorman, who live in Wakefield, also got the £100 cheque after complaining in February.

They rejected it, triggering a long drawn-out exchange of letters. Eventually a cheque for the full amount of interest owing plus a further £150 compensation dropped through the letterbox. "It appears that in the face of determined and reasoned arguments, the Halifax will 'do the right thing' after all."