Staff Mortgage Problem

MarkyMarkD

I don't understand why people are referring so often to staff handbooks and the like.

The FSA are completely consistent on this - if it's not in the KFI, then it's not enforceable. I do not believe for a millisecond that FOS would support Abbey's view on this.

As others have said, take it through Abbey's complaints procedure and then to FOS if no progress with Abbey.

chambta

As MarkyMarkD says surely anything that isn't in the KFI is irrelevant.

agentsmith

well, they found in my favour. So we go back on the rate from monday, all charges reversed. Thanks a lot for your support, and have a great weekend. I will

HelpWhereIcan

deleted cos I was being a mong who could not read to the end of the thread

congrats on your successful complaint - I suspect they knew they would have no luck with the FOS

Glasgowkiss84

That's fantastic news!! Well done!!

I was on a staff mortgage and they changed it - this was about 18 months ago though.

I wonder if there are any time limits on complaining? Does anyone know?

chambta

agentsmith wrote: »

well, they found in my favour. So we go back on the rate from monday, all charges reversed. Thanks a lot for your support, and have a great weekend. I will

Well done for persuing them. From what you'd stated I didn't think they had a leg to stand on.

MarkyMarkD

Glasgowkiss84 wrote: »

That's fantastic news!! Well done!!

I was on a staff mortgage and they changed it - this was about 18 months ago though.

I wonder if there are any time limits on complaining? Does anyone know?

If your situation was the same as the OP's and they withdrew a rate which you had, clearly stated in a KFI which made no mention of the rate being conditional on remaining an employee, then there is no reason why you should not complain. You can complain for 6 years from when they breach your agreement.

lenny16

Good morning,

I understand that this post is now over 18 months old, however I am now experiencing exactly the same scenario with Santander so could do with some help!

Having taken out a mortgage with them in 2007 whilst I was employed by them I was offered a good lifetime tracker at 0.49% above base rate (good at the time but even better when the BofE started to drop of course).

I left Santander in April and to my surprise I recently received a letter confirming that my rate would jump to a 3.29% above base rate as 'I was previously on a Staff Flexi Rate'.

I have checked my mortgage offer and all other paperwork received at the time as well as all paperwork received since and NOTHING confirms that I was on a Staff Flexi (offset) rate or that the rate would be subject to change if my employment ended.

In fact the wording in both section 4 and section 12 of my offer is identical to that of 'agentsmith' (above) with the exception of the rate being different.

I have raised this verbally with Santander initially and they are investigating whether this is considered a case of mis-selling etc. They cannot see any paperwork relating to this being a Staff Rate on their internal systems although they are to listen to phone calls to determine whether I knew it was a Staff Rate at the time.

I explained that I took the mortgage out nearly 4 years ago and dealt with an advisor over the telephone. I explained that I could not recall the details of every telephone conversation but I am categoric in that I was never told that the rate I was taking (Staff rate or otherwise) was only available during my Santander employment. More importantly the conditions were not laid out in my offer or KFI which is the most important thing.

Is my approach and argument here correct? Ie the offer and KFI MUST display this information for it to be enforceable and for them to be able to change my rate in this manner?

On a seperate note I have checked my P11D and I was NOT paying BIK on the rate.

Any help and advice would be greatly appreciated.

Many thanks and kind regards

Lenny

dunstonh

Its no wonder the banks cant give decent service and advice nowadays.

MarkyMarkD

My previous advice in this thread applies equally (but more so) to Lenny's case.

BIK tax would be due on any mortgage which was a staff special deal. It would not be due on a standard retail customer deal.

When I worked for a particular bank (not the one mentioned in this thread) they were very clear that they only offered staff standard customer deals precisely to avoid the BIK issue.

IMHO banks can pay staff an incentive to take one of their deals - as long as they treat it as a taxable bonus and the deal itself is a standard customer one.