Staff Mortgage Problem

Mrs_Bumble

This bit is interesting then:

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.

Is there any reference in the enclosed book (referenced) about the rate that you are being charged?

agentsmith

fabjenni wrote: »

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.

nothing in contract of employment, nothing in handbook of 2002, apparently it's mentioned in the 2007 revision. We believe she did not receive this as would have been on maternity leave at the time.

agentsmith

Mrs_Bumble wrote: »

This bit is interesting then:

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.

Is there any reference in the enclosed book (referenced) about the rate that you are being charged?

the enclosed book is Abbeys standard T's and C's book 2007 (nothing customised for staff)... I couldnt find anything relating to their ability to swtich rates, tariffs or packages...

Thrugelmir

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.

Did Abbey maintain their staff handbook on the Company's intranet?

Mrs_Bumble

If there is no reversion rate on the KFI/Offer, then the rate shouldn't change as the statement above is clear, the rate is not subject to change. The overall cost of the mortgage for comparison is worked out on this basis and the FSA rules state that the client must be aware at outset what the cost is likely to be and it has to be accurate. I would be holding out for the above rate!

jill2002

Was the rate offered solely to staff? If so then it is withdrawn when you leave. I can't remember where I've read it, but with Abbey, you definately lose the deal and are put onto customer rates. You will also stop paying tax on the benefit.

thearulsofwinterpark

Mrs_Bumble wrote: »

If there is no reversion rate on the KFI/Offer, then the rate shouldn't change as the statement above is clear, the rate is not subject to change. The overall cost of the mortgage for comparison is worked out on this basis and the FSA rules state that the client must be aware at outset what the cost is likely to be and it has to be accurate. I would be holding out for the above rate!

I was made redundant from Abbey last Sept and was on a staff mortgage rate. The reversion is due to happen this month (being 12 months from date of redundancy) according to a letter from the mortgage team. However, I too believe that the mortgage offer / KFI does not state that this is possible and the the rate is for lifetime, ie BBR + (in my case) 0.25%. In fact, the mortgage advisor in the retentions team believes this aswell. Just wondered if "agentsmith" had got anywhere with his claim and had any tips for another displaced abbey mortgage customer, before I go about the complaints process.

Thanks

thearulsofwinterpark

Did you get anywhere with this? I'm in a similar position.

agentsmith

hi all.

im in the final week of "2nd line complaints" , (you get 3 weeks here) after it's deadlocked, you get to go to the FOS. Not before.

if you havent started the complaints process, i'd start now, it's taken quite some time so far, and both levels of complaints have to be done before you can go further.

Im keeping to my line (thanks to a number of posters here). Without contractual linking to additionally bindings T's and C's I dont recognise their ability to change the rate. period.

thearulsofwinterpark

Thanks for the advice and update - will give it a crack. Mine says on the offer letter : "All parts of this conversion offer, together with the flexible plus mortgage conditions booklet, will form the terms of your mortgage".

At no point in any of that documentation, nor the orginal mortgage (as I converted a non-staff mortgage to staff terms) is there any mention of a rate changing upon leaving the employment of Abbey.

Seems clear cut and appears they have a bit of a loophole that needs plugging.