HBOS Staff Mortgage

Fergy_2

How does this rate at the moment?

I am remortgaging & have been offered 5.00% tacking at 0% for the full term
No tie ins & no arrangement fees.

Is there anything better out there?

payless

Not as a tracker , although of course the value of a fixed ( if preferred) would be hard to judge .

Check what tax implications there are.

AJ1982

Cant fault this at all. Im an HBOS colleague too, so I got one... Only imp is tax, check with HR/Payroll. Dont quote me, but think they catch up with u next tax year anwyays... Otherwise enjoy the low rate, no arrangement fee, give em ur survey fee (mine was £430) and enjoy... Oh, and if u leave HBOS there is leeway to move to another product, so u wont be on an "invalid" mortgage straight away if that makes sense...

luckyfool

Sounds like a great product, only issue as mentioned above is that you will be clobbered for tax on the perceived benefit.

see here : http://forums.moneysavingexpert.com/showthread.html?t=767167

Fergy_2

Many Thanks for the quick replies, i will speak to Payroll on Monday, but can anyone explain clobbered - would the tax implications outway the benefit, I earn 17000 a year.

caileag

Fergy wrote: »

Many Thanks for the quick replies, i will speak to Payroll on Monday, but can anyone explain clobbered - would the tax implications outway the benefit, I earn 17000 a year.

I am not HBOS (I work for "the other side"!) but the taxation principle is the same. The taxman works with a tax rate of 6.25% at present - may change at any point - and any discount from that is taxable. So, in your case, you are getting a taxable discount of 1.25%.

To randomly select an example, say your mortgage is £100,000 interest only. That 1.25% taxable discount then equates to £1,250 discount. You will therefore be taxed as though you have earnt £1,250 a year more.

In your case, you are a basic rate tax payer, so would pay 20% tax (IIRC) which would be £250 extra tax.

Obviously, work out using your own figures!

HTH, C