Employer discounted mortgage rate and redundancy

FS23_2

Hi,

Just wondered if any one out there has some advice. I used to work for a former building society, now part of a big bank, which gave me an employee discount on their mortgage rate. When they made me redundant they let me keep the discount for a while, but when that should have expired they never upped the rate back to their standard rate. :rotfl:Am I liable for any underpayment? My mortgage statement just looks like I'm still entitled to the discounted rate, but I'm worried they'll eventually notice and backdate the increase:eek:!

Hoping for some words of wisdom...

missindecisive

No you won't be liable. If they are going to change the rate on your mortgage they need to notify you in writing first...staff rate or not.

getmore4less

Looks like they already had it in writing as they were told that the rate would expire on a date and what the follow on rate would be.

Goldiegirl

I doubt very much if they'd backdate any change to the standard rate, as it's their error that they haven't noticed you still have the staff rate

You are 'under the radar' at the moment, but they could catch up with you literally at any time. Might be a good idea work out what your correct monthly payment should be, and put the difference between the full mp and your lower staff rate mortgage into savings each month - then you'd be prepared to make a higher mortgage payment at any time.

Of course, being a former bank employee, you are probably doing that already!

There's another course of action. If it's really worrying you, you could always tell them, and get taken off staff rate.

scaredofdebt

FS23 wrote: »

Hi,

When they made me redundant they let me keep the discount for a while, but when that should have expired they never upped the rate back to their standard rate.

What does "for a while" mean?

Was this put in writing?

Yes, you will be liable even if it is their mistake/oversight.

It's quite likely they would put the rate up at the annual review/when they send the annual statement or they may only do this when there's a base rate change, depends how their systems work.

The best bet is as per the previous poster, make savings for the shortfall so you can pay it if they back date the increase.

ERICS_MUM

Did they actually tell you and confirm in writing that your rate would be increased to the standard rate once the staff rate expired ? Is it covered in the terms of redundancy you were given ?