Staff Mortgage Problem

Thrugelmir

agentsmith wrote: »

hello all.

ok, so their statement is it's in the staff handbook of 2007 and that mortgage policy doesnt need to reference it in anyway .. ?

my second grievance was that the rate has gone to todays rate/offer rather than simply remove the benefit and revert to the rate available to general public at the time. Again they point to pages in a staff handbook which she was not supplied (only one in 2002).

The differential has climbed from 1.38% over base to 3.29% over base. I think the public rate was <2% at the time and feel they ought to revert to this. Does anyone legally know where I stand with this?

thanks.

Suggest you consult a solicitor with some knowledge in the field.

Considering the number of people employed in the Company. This would have appeared as a major issue before now if there was something "illegal".

Can you prove that the rate you were on was available to the general public?

opinions4u

1. Write to Abbey, with a copy of the KeyFacts document, asking them to honour the terms of the document.

2. If the refuse to, write back asking for a clarity of why (including copies of staff handbooks etc) and for a letter of deadlock.

3. Then pursue it via the Ombudsman - who will almost certainly support the wording of the Key Facts document in the absence of any other documentation.

Thrugelmir

agentsmith wrote: »

hello all.

ok, so their statement is it's in the staff handbook of 2007 and that mortgage policy doesnt need to reference it in anyway .. ?

my second grievance was that the rate has gone to todays rate/offer rather than simply remove the benefit and revert to the rate available to general public at the time. Again they point to pages in a staff handbook which she was not supplied (only one in 2002).

The differential has climbed from 1.38% over base to 3.29% over base. I think the public rate was <2% at the time and feel they ought to revert to this. Does anyone legally know where I stand with this?

thanks.

You haven't said the terms of the loan ie "for life", fixed term etc.

Did you (or your wife) read the staff handbook when you took the mortgage out?

Mrs_Bumble

agentsmith wrote: »

hello all.

ok, so their statement is it's in the staff handbook of 2007 and that mortgage policy doesnt need to reference it in anyway .. ?

my second grievance was that the rate has gone to todays rate/offer rather than simply remove the benefit and revert to the rate available to general public at the time. Again they point to pages in a staff handbook which she was not supplied (only one in 2002).

The differential has climbed from 1.38% over base to 3.29% over base. I think the public rate was <2% at the time and feel they ought to revert to this. Does anyone legally know where I stand with this?

thanks.

Again what are the terms of the mortgage offer that you were issued when you took the mortgage out as I feel sure in that mortgage offer it will indicate what the mortgage will revert to if you no longer qualify for the staff rate. Check the offer.

agentsmith

Thrugelmir wrote: »

You haven't said the terms of the loan ie "for life", fixed term etc.

Did you (or your wife) read the staff handbook when you took the mortgage out?

I have checked the staff book we have, but makes no reference to staff mortgage. Turns out we dont even have a staff handbook with the offending references (abbey are going to send me the relevant pages via post).

Was not even aware (on reading the keyfacts, mortgage offer, or anything else) that there was an effect on leaving abbey as there makes no comments in there.

as others have suggested, im going to go via FOS and perhaps even to a solicitor. My fight is clear, I would *like* the contractually agreed rate, but frankly i'll settle for BBR+1.8% which I believe was the public website rate available at the time. Right now BBR+3.29% is ridiculously high.

cheers.

PasturesNew

agentsmith wrote: »

BBR+3.29% is ridiculously high.

(3.29% + 0.5%) 3.79% is less than half the long term average for a mortgage in my book.

Mrs_Bumble

agentsmith wrote: »

I have checked the staff book we have, but makes no reference to staff mortgage. Turns out we dont even have a staff handbook with the offending references (abbey are going to send me the relevant pages via post).

Was not even aware (on reading the keyfacts, mortgage offer, or anything else) that there was an effect on leaving abbey as there makes no comments in there.

as others have suggested, im going to go via FOS and perhaps even to a solicitor. My fight is clear, I would *like* the contractually agreed rate, but frankly i'll settle for BBR+1.8% which I believe was the public website rate available at the time. Right now BBR+3.29% is ridiculously high.

cheers.

If the key facts/mortgage offer doesn't make any reference to what happens if no longer a member of staff then you will need to go through the Abbey complaints procedure before you can approach FOS, you need to have exhausted the internal complaints procedure.

What does it say in section 4 of the key facts?

Section 12?

agentsmith

hello all, thanks again for the replies. Im already in the complaints system, and I guess the docs which hopefully arrive early this week will allow me to go to the next stage before FOS.

cheers.

Section 4:
A variable rate which is 1.38%
above the Bank of England repo
rate (its base rate), currently 2%,
to give a current rate payable of
3.38%.

The interest that we add to the
Bank of England repo rate (known
as the tracking differential and
which is 1.38%), is not subject to
change.

Please note: This loan is only
available up to a maximum of 85%
of the property's valuation.

Any change to the interest rate
following a change to the Bank of
England repo rate will take effect
on the 3rd of the month following
the date of the Change.

Further details of how interest is charged (and other conditions applying to your mortgage) are set out in our enclosed
Flexible Plus Mortgage Conditions booklet.


Section 12:
12. Additional features

Underpayments

You may make underpayments on your mortgage if you have enough available credit, as long as the terms of the
mortgage conditions are met.
Payment holidays
As long as you've made enough overpayments you may take payment holidays.

You may take payment holidays on your mortgage if you've enough available credit, as long as the terms of the mortgage
conditions are met.

Borrow back

You may borrow back money you've overpaid if you've enough available credit, as long as the terms of the mortgage
conditions are met.
Additional secured borrowing - this will increase the amount of borrowing secured on your home.

Your credit limit is £---(DELETE BY ME). You may be able to borrow additional money if you ask for the credit limit on your
mortgage to be increased and we agree to this, as long as the terms of the mortgage conditions are met. All money
borrowed will need to be paid back in full by the end of the mortgage term.
Linked savings account

You may pay money into your savings pot which is a compulsory feature of this product and this will offset interest
charged on your mortgage, as long as the terms of the mortgage conditions are met.
Incentives

If you complete on this mortgage with Abbey, Abbey will arrange and pay for the cost of standard legal fees involved in the
conveyancing in connection with your mortgage and, if applicable, the sale and purchase of your home, using a solicitor
selected and arranged by Abbey. This includes Land Registry registration fees applicable up to £500,000 property price.

If your property value exceeds £500,000, you will need to pay any difference in Land Registry registration fee. Abbey will
give you your first free standard mortgage valuation (costing up to £1,100). You will not be able to ask Abbey to work with
a surveyor or conveyancer of your own choice. You must use one of our participating panel of surveyors and
conveyancers.

The Solicitor instructed will be acting for both you and Abbey and you'll have to pay the following third party fees (if they
apply to you):

a) The landlord's registration fee for registering the mortgage with the landlord in accordance with the terms of the lease, if
the property is leasehold; and
b) Any Land Registry registration fee for property prices above £500,000, as detailed above
c) Any Stamp Duty

If any additional work is required, which is not normally associated with a remortgage/purchase e.g. Transfer of Equity,
then this must be at your own cost. You will be provided with details of any additional fees or the cost of any additional
work before any work is carried out.

agentsmith

PasturesNew wrote: »

(3.29% + 0.5%) 3.79% is less than half the long term average for a mortgage in my book.

you're of course absolutely right - when the rates start to really move possibly i'll fix as competitively as possible. The whole point of having a nice low tracker though was to enjoy the cheap rates and clear some capital.

Longerterm if i could secure a 4.5% 5yr fix i'd certainly consider it.

cheers.

fabjenni

If its a staff mortgage, it might be worth a look in your wifes contract of employment, rather that the kfi or offer docs of the mortgage, you might find something in there regarding what happens if you have the staff mortgage & then leave the company.