My employer's putting me into debt, help!

Nutkin

I relocated with my employer last year to a more expensive area. It was a promotion, and it was a new start for my family. We were entitled to help with the additional mortgage costs, as the area was so much more expensive. We have just got settled, and now because the interest rates have dropped nationally, they have slashed the amount I am getting by almost half. I am now in the situation where I cannot remortgage, because I would not be able to get the same mortgage due to the effective drop in salary, House prices have dropped, and I feel that I am now stuck in a tunnel, between a rock and a hard place!!:mad:

It says in the policy to do with this that they can, but surely it cannot be legal to force people into a debt situation, as it will effectively mean I will go into default in about 6 months, and then have to suffer all that follows. Advice anyone? I have spoken to my union, but want to find out if there is any other recourse I can take.

SomeBozo

I don't get what has happened? Where they helping with relocation costs and now the interest rate has fallen so has their assistance?

Bozo

Nutkin

Pretty much spot on. As rates have dropped, so has the amount they calculate based on an average of the high street lenders. Arguement I have is that the figure they gave me when I relocated was that which was used to calculate what I could borrow, now they have whipped the rug away from under me. Caring employer eh! I appealed because I am on a fixed rate which is about 1/2 % above the rate they are now using, and they have agreed to pay me an extra £77 per month gross after taking £500 a month of me. I am sure it cannot be lawful to do this to an employee?????

A_Nice_Englishman

Sounds like you were badly advised to take a fixed rate mortgage if the subsidy from your employer would vary in line with the market.

Is there any way you can renegotiate the way the subsidy is calculated? What is the cost of moving from the fixed rate to tracker or SVR?

Andy_L

Unfortunately your employer is only obliged to pay the mortgage assistant as per the relocation deal. You could try asking for more but I can guess their answer

CFC

Am I stoopid? You selected the house, you selected the mortgage, and there was no guarantee that the assistance would carry on at the same level for ever. I can't see why you are complaining?

maninthestreet

Nutkin wrote: »

I relocated with my employer last year to a more expensive area. It was a promotion, and it was a new start for my family. We were entitled to help with the additional mortgage costs, as the area was so much more expensive. We have just got settled, and now because the interest rates have dropped nationally, they have slashed the amount I am getting by almost half. I am now in the situation where I cannot remortgage, because I would not be able to get the same mortgage due to the effective drop in salary, House prices have dropped, and I feel that I am now stuck in a tunnel, between a rock and a hard place!!:mad:

It says in the policy to do with this that they can, but surely it cannot be legal to force people into a debt situation, as it will effectively mean I will go into default in about 6 months, and then have to suffer all that follows. Advice anyone? I have spoken to my union, but want to find out if there is any other recourse I can take.

Please post some more details on the mortage deal you have, the outstanding mortgage amount, the price you paid for your property, it's estimated value, plus your salary abd the mortgage assistance you receive from your employer.

annie-c

Gosh, that sounds like a terribly stressfuls situation!


We do need more information to be able to advise you though.

From what you've said it sounds like your employer was initially giving you relocation assistance to the tune of £1K per month but they have now reduced this to £500 per month. Somehow it seems that when applying for a mortgage your bank calculated the £1000 as being part of your salary? Whereas actually your salary was and is whatever it said in your initial stating letter and the £1K per month was a separate stream of funding that was non-contractual - have I got this right?

annie-c

PS I notice you have sproken to your union. You should be entitled to free legal advice and that will probably be the best first step you could take.