Staff Mortgage Problem

magpiecottage

dunstonh wrote: »

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

Firms are supposed to make sure their staff are competent to carry out the tasks they are required to perform.

They seldom are.

But then again, FOS is even worse!


Nevertheless, unless the lender can prove, on the balance of probability, it made you aware that the rate would change on leaving employment, I think FOS would find in the borrower's favour.

3isthemagic

Hi I wondered if anyone could give me a little help please. I am on maternity leave and thinking of not going back to work to my job in a bank branch. I do have a staff mortgage which is 2% +base, I have looked at my KFI and mortgage offer but there is nothing stating what the rate reverts to if I should leave the company. The KFI does state that I am on a staff mortgage rate of 2% +BOI rate but it doesn't in any shape or form state that this is dependant upon my staying an employee. I have looked in my contract and there is nothing in there either...... I can't ask anyone at the branch but I really don't know where I stand?!? Any advice, words of wisdom would be very greatfully recieved please.

3isthemagic

Forgot to add I do pay BIK on this.

Morgage_Confused

I dont know if this helps but there are current mortgage deals offering 1.99% plus base....so what you have is not necessarily a "special" deal.

opinions4u

What does your staff handbook (or similar) say?

What does your trade union say?

Who is the employer?

Have you considered remortgaging anyway?

3isthemagic

Thanks for your replies. The problem I have is we are just over 80% ltv and don't seem to qualify for those rates due to this. Our staff handbook in online and as I am away from the branch I cannot access. I have asked HR for a copy on PDF and even specific sections but they have said it is too large to email?!?

What I don't understand (having worked in mortgages for some years prior to this role) is that the KFI at no point tells me what the cost would be should I finish my employment. At no point during the arrangement was I told what the rate upon leaving would be either.


I haven't spoken to the union yet - I would not know where to start!!!!

MarkyMarkD

The KFI is required to contain all the relevant information. If it does not say "your rate is BBR+2% because you are a member of staff, and if you leave employment your rate will revert to our Standard Variable Rate" or something like that, then your rate cannot be changed when you leave employment.

Simply saying "your rate is a staff rate of BBR+2%" doesn't allow them to amend the rate if you leave employment.

TrickyDicky101

You would have a positive incentive to leave then too as you won't have a benefit in kind when you leave

3isthemagic

Thanks All,

The KFI reads ****is pleased to provide you with a personalised illustration on our staff-flexible-offset-lifetime tracker

A variable rate of 1.74% above BOE currently 0.50% to give a current rate of 2.24%. Following a change in the BOE rate the interest rate applied to your loan will change from your next scheduled payment date.

in section 6 -

(this is a 5 year mortgage btw)

59 payments at a variable rate currently 2.24%
followed by
1 payment at a variable rate currently 2.24%


For some annoying reason I cannot find the mortgage offer anywhere!!! If it is then mentioned in the mortgage offer do I stand a chance or not?

3isthemagic

:sad::sad::sad: Hi All, Well I am about to hand my notice in at the end of the month. I have found the mortgage offer and it does confirm that the rate is dependant on me being an employee and if it changes then it will revert to their SVR.

However there is as mentioned before nothing and no figures on the KFI just that this is a staff rate. Is it worth me challenging on the basis that the KFI mentions no reversionary rate?

Help please!!!