Bank Employees with Staff Mortgages

Scott

With staff mortgages, there is usually more to consider than purely the rate. You often avoid a lot of other charges as well, most significantly including higher lending charges in many cases.

Possibly not useful to people who've been on the market for a while, but it's pretty much the most awesome thing EVER for someone in my situation.

nortoang

hi, this is also driving me and my colleagues mad at RBS, we weren't advised that the 5% tax level could change and as we took out a fixed rate deal and mainly higher rate tax payers we are paying way over the odds. this iis ridiculous, if i had known i would not have taken it out with RBS, is there anywhere I can find out best deals at a certain time to compare?

silvercar

nortoang wrote: »

hi, this is also driving me and my colleagues mad at RBS, we weren't advised that the 5% tax level could change and as we took out a fixed rate deal and mainly higher rate tax payers we are paying way over the odds. this iis ridiculous, if i had known i would not have taken it out with RBS, is there anywhere I can find out best deals at a certain time to compare?

Best deals available at the time you took out your mortgage won't mean IR will reduce your tax liability. If there are no other benefits available to you by keeping a staff mortgage then look to change it. Would RBS let you transfer to a non-staff mortgage with them?

[Deleted User]

What would be the point in a staff mortgage then as all normal mortgages are less then 6.25% and you dont need to pay tax.

nortoang

i locked in at 4.59 for 5 years and now with the tax my equiv rate is 5.25, they will let us come out of our staff mortgage without penalty if we go to rbs or natwest but we will have to pay arrangement fee and their current 5 year fix is 5.8! stuck in a rubbish situation. alot of people here have been really stung with it. the trouble is that there is only overall beneficial loan rate for loans or mortgages - if you had a car loan the rate would make sense but for a fixed rate mortgage is bl*&dy ridiculous. as said on a previous post we may get zero fees but rates at the time are not really beneficial and now they are just a penalty. guy at work has a tax expert ife that is going to look into this further, will let you know if i hear anything. I think we were misold the staff mortgages and not warned of the risks

chumboy

I knew that RBS/Nat West had provided news to staff that the rate had changed, though it was sometime after the budget annoucement. Lloyds TSB still have not and will not as they view it as providing advice ?! Yet when other benefits/allowances change i.e. petrol mileage rates, they do communicate it.

Any Barclays staff out there - what have they announced?

aplam_chaplam

Hi All,

Just a quick question on the staff mortgage discount. My OH works for RBS and we have been offered +0.79% above Natwest Bank Base Rate currently 5.79%.

My OH is basic rate tax payer whereas I am high tax payer. My question is whether the tax on staff mortgage discount will be charged at 20% (for basic tax rate payer as my wife is getting the staff discount) or will it be charged as 40% (because mortgage is on joint name) ?

Also this Natwest Bank base rate, is this always same as BoE base rate?

Thanks a ton

hostman

I didn't even realise these things were taxed - What an awful situation.

Is there no end to our Government's taxing??!?!