Staff Mortgage Problem

Thrugelmir

3isthemagic wrote: »

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!!!

If your no longer employee them logical that no staff benefits would apply. The mortgage offer clearly states that this is the case. Given you signed the offer letter. This formed contractual terms between you and your employer.

3isthemagic

I know, but the KFI is a document which should disclose all information about the mortgage and it doesn't. At no point does it mention what the rate reverts to nor it being dependant on me being an employee. I know it is a long shot but worth a try?

exshabby

I took out a staff mortgage on the flexi rate of .25 above base. I was then shoved onto the 3.29% above base rate. I was not informed of this in of the paperwork, and nowhere on the kfi stated this.

On top of this I recently went to do a self assessment tax return and it turns out hmrc now want 1279 pounds from me, for the period between 2008 - 2012 when Abbey / Santander should have been taxing the rate as benefit in kind, which at the time of taking out the mortgage I was not informed on.

Now I dont quite know where to go with this. 2 complaints or 1.

magpiecottage

You have not said WHY your rate has been increased. If you are saying it is because you left employment and was not specified on the KFD then you complain to the mortgage team.

The tax side is an issue with payroll who should have dealt with it under P11D.

Goldiegirl

I speak as someone who had a staff mortgage for many years

I'm really shocked that any one would think that a staff benefit like a staff mortgage would continue if you were no longer a member of staff.

The reason 'nobody told me' doesn't work - all the information regarding staff mortgages and the eligibility for these mortgages would have been in your staff manual - it is not your ex-employers fault that you didn't read the manual.

Likewise, it would have been made clear in the manual that it was a taxable benefit, and that you were responsible for making sure you paid the correct amount of tax.

The employer paid tax based on the code provided by the tax office. THe employer should have advised the tax office of any taxable benefits you were receiving - BUT, the employer would have given you a document every year giving details of the information provided to the tax office. If there were any discrepancies, like they hadn't told the tax office about your staff mortgage, it was your responsibility to get it sorted.

There is no complaint to make to your ex employer - you had all the information at your fingertips and it was your responsibility to make sure your knew the staff benefit conditions and to make sure you paid the correct tax.

You do owe the tax, so it does need to be paid.

Sorry if this is not what you want to hear.