Staff Mortgage Rate

opinions4u

ironman1 wrote: »

Very infirmative replies. Thanks...

I am not a higher rate tax payer! Also we currently have a shared ownership and pay £470 on our half. If I was to go on staff rate how much would we pay roughly ibstead of the 470?

Thanks I am new to job and getting my head around rates etc

Google BBC mortgage calculator and type your figures in there.

ironman1

Will be around twenty years on new rate because we got tucked up a bit when we originally took it out over 40yrs for half! But we have overpaid about 12000 in the last 5 yrs

GDVS

Using, as opinions4u suggests, the BBC mortgage calculator that's around £273 at 1.2% (i.e. the 0.5% rate plus the tax).

You can play with the numbers yourself and use the formula in post 7 to calculate the rate to use to see what effect a change in the HMRC official rate would have. Most of the posts talking about staff mortgages stem from a time when the mortgage rates had tumbled but the official rate was still high, that's no longer the case but it's not impossible that it will happen again.

ironman1

Ah great. Im on phone so cant use the calculator site very well!

Can someone help with this please...

Rough estimate.

If I took the staff rate and bought the other half of the property how much would we be looking at monthly?

Say we owe 60,000 and bought the other half at 95,000 on staff rate. How much monthly at an estimate over 30 yrs. At the moment we pay 475pm mortgage and 275 rent pm. Just wondering if it would work out CHEAPER owning 100%

ironman1

So we would owe around £155,000 at staff rate over 30yrs

Goldiegirl

Just wanted to mention that I used to have a staff mortgage.

At one time it was capped at 5%, so in the days of high interest it was a big benefit and a considerable tax burden, but even so, I never made a loss on having the staff mortgage.

Although the interest rate was capped at 5%, when the public rate fell below 5% out rate fell as well.

At that point they introduced a new staff mortgage which I switched to. This mortgage rate tracked the Bank of England Rate, so the rate I paid was 0.5% for some time.

It's a decision only you can make - if you leave the employ of the bank they'll switch you to the SVR, and you could always remortgage at that point.

One benefit of a staff mortgage is that you can keep an eye on it to make sure it's being administered correctly.

I retired from the bank three years ago, and as a pensioner I was able to keep my staff rate. However, after a few months I paid the mortgage off in full because I didn't trust them to get the admin right! All the experienced admin staff had been made redundant, and it didn't make me feel very comfortable asking a bank employee to do something on my mortgage who knew less about it that I did!