The 200,000 customers affected by this 'technical error' are those who opted to add their premium to their mortgage and who pay a single monthly mortgage and insurance payment as a result.
Halifax assured customers that this has now been rectified. However the Financial Services Authority has been informed.
Identified in a regular review of customer accounts, the error arose after computer coding linking the mortgage and general insurance systems was found to be incorrect. The correct amount was subsequently not collected each month from the customer's bank account to pay their monthly insurance premium and any underpayment remained on the mortgage balance so some customers paid more interest than they should have.
The average amount of interest being refunded is £12.47. This refund has already been credited to the relevant mortgage accounts and will be shown as an interest refund on the next annual mortgage statement.
The average insurance premium underpayment as a result of this error is approximately £100.00. To make good this underpayment, customers can make either a one-off payment or spread the amount over a number of months to bring their account up to date.
All affected customers will receive a letter over the next few weeks explaining what has happened and their correct monthly payment. No further action is required.
