bank refusing refinance to more affordable rate

Gentoo365

1.5% staff mortgage rate!

I need to change jobs.

Thrugelmir

Gentoo365 wrote: »

1.5% staff mortgage rate!

I need to change jobs.

Is a taxable benefit. So not as good as it appears.

opinions4u

Gentoo365 wrote: »

1.5% staff mortgage rate!

I need to change jobs.

Many bank employees borrow from elsewhere though.

The taxable benefit can add 1% to the effective cost of borrowing. The rate is variable. You lack privacy from your employer. Many employers restrict the amount you can borrow and don't take in to account partner incomes. And it's often cheaper to borrow from First Direct.

Indeed, when base rates were higher most fixed and tracker deals being offered to the public were cheaper than bank staff had to pay.

Gentoo365

Thrugelmir wrote: »

Still needs to meet current lending criteria.

I disagree.

The initial suggestion was that a 'staff' indicator is added to the existing account. It is unrealistic to expect someone to know if their mortgage is applicable for a staff discount should they be employed by the bank at a future date.

For me it is a question regarding employment and benefit terms and conditions.

If the conditions say that a member of staff has to apply for a staff product then you are correct, lending criteria is valid. If the terms state that existing mortgages are switched to the staff rate, or that a discount is applied then I the situation is different.

Personally I would take it up with the HR benefits people (whoever they are).

As said above though, ensure that you don't risk your job. Don't do anything silly like threaten to take it further. Just state that you think that they should adjust their staff mortgage conditions so that more staff can take advantage of it. Say that you believe that offering staff rates is an excellent recruitment and retention tool and it is unfortunate that it is not available on all products.

Gentoo365

opinions4u wrote: »

Many bank employees borrow from elsewhere though.

The taxable benefit can add 1% to the effective cost of borrowing. The rate is variable. You lack privacy from your employer. Many employers restrict the amount you can borrow and don't take in to account partner incomes. And it's often cheaper to borrow from First Direct.

Indeed, when base rates were higher most fixed and tracker deals being offered to the public were cheaper than bank staff had to pay.

I suppose you are right.

Be a bit of a pain if you wanted to complain about the service standards too.

Thrugelmir

Gentoo365 wrote: »

I disagree.

The initial suggestion was that a 'staff' indicator is added to the existing account. It is unrealistic to expect someone to know if their mortgage is applicable for a staff discount should they be employed by the bank at a future date.

A staff mortgage is something which is applied for. That the criteria as with any form of lending has to be met. There's no automatic right to a staff mortgage.

The word discount is misleading. Employees are eligble to apply for benefits. A totally different scenario.