Does anyone know anything about HBOS colleague mortgages?

kunekune

Hubby works for HBOS. Until recently, I'd not actually cottoned on to the fact that this might make a difference when we want a mortgage, but today they sent out a summary of the terms and conditions: they are nice. BOE base rate for term of mortgage (unless you leave), no product fee, no early repayment, no HLC, will do a LTV to 95% (this latter one isn't relevant as we would have a deposit of 10% minimum already).

But what I don't know and would like to know is how much you can borrow? I earn slightly more than DH (even if his bonus counts), so if we were applying for a 'normal' mortgage we would be looking for a bit over 2x joint income. If he wanted a colleague mortgage would we be limited to a multiple of his income (or end up with a second mortgage)?

Tiddler_2

The rate on the mortgage is very good based on deals currently available for variable or tracker mortgages.

In terms of income from what I can remember as an ex HBOS employee, normal affordability calculation is used, so won't be a problem based on what you have said.

The only downside is that it is a taxable benefit and so has to be declared to the inland revenue. There used to be a standard letter that you could send on the online manual (was called worldview in my day!!)

money_maker_3

Been a while since you were there then Tiddler !!! But your right there is a form if your hubby logs onto x-plain it at work and goes to mortgages, staff mortgages he will get all the info he needs, but he could just ask any of the mortgage advisers in the branch. Also the normal lending criteria is used as in a normal application, BUT you are limited to 4 x hubbys basic income as the amount that can go on the staff rate, the rest will go on any other rate available at the time of application. Hope this helps

Leon_W

Just for your information I was talking to someone only yesterday who had a staff mortgage with Lloyds TSB at bank base rate. On paper it looked very good but by the time the revenue had got their fingers in the pie it worked out they were effectively paying a shade over 6%.

Make sure you do your sums as once the revenue have got you on their little "benefits in kind" radar it's very difficult to get back off it !

kunekune

It's not the rate, as such, that is the main thing , it's the no fee/no early redemption that appeals. There is a link on the leaflet for checking the tax situation, will do that. Money maker, if there is a top up, do they then charge an application fee on the application fee for the top up, or is it just that you pay the higher rate on that part? £150K is barely enough for a house round here (ex-colleagues will remember that HBOS are not exactly good payers), I could raise more than that on my own salary... we will be wanting another £20K or so.

Leeds_Fella

Agree with the point raised with the tax to be paid on the benefit. Real value is no upfront fee or tie in</p>


Disagree with the point raised that HBOS pay poor salaries, but I suppose its down to the grade and division you work in. I'm very happy there

kunekune

He's in IT. He'd definitely get more elsewhere. In fairness, it may be a problem specific to IT. And I'd add that salary isn't everything. Getting more might involve losing non-money stuff that is still important for us. Thanks for putting that into perspective.

Leeds_Fella

Me too - in IT

Agree, you have to weigh up the total reward - free shares (even though they are low at the mo), bonus, benefits, flexible working

Don't get me wrong its not London salaries, but its OK.


I did look into the staff mort scheme, but at the time, it worked out better to go elsewhere

Tiddler_2

Leon_W wrote: »

Just for your information I was talking to someone only yesterday who had a staff mortgage with Lloyds TSB at bank base rate. On paper it looked very good but by the time the revenue had got their fingers in the pie it worked out they were effectively paying a shade over 6%.

Make sure you do your sums as once the revenue have got you on their little "benefits in kind" radar it's very difficult to get back off it !

If you can get a tracker rate of 6% with no fees, no ERCs at 90% LTV it would still be pretty good in todays market, I think!!

Money Maker - It was 5 years ago, when I originally left, but did return for a year in 2004 (then remembered why I'd left in the first place!!) I do recall it being called xplain-it now you mention it!!

money_maker_3

kunekune wrote: »

, if there is a top up, do they then charge an application fee on the application fee for the top up, or is it just that you pay the higher rate on that part? £150K is barely enough for a house round here (ex-colleagues will remember that HBOS are not exactly good payers), I could raise more than that on my own salary... we will be wanting another £20K or so.

No still no arrangement fee, just you would have to take a rate on offer like the 3 year fixed at 5.99 or something similar, and it would ONLY be on the amount above his salary allowance.

kunekune

Thanks! That sorts out a lot of questions. Of course, by the time we are ready (ie, confident enough) to buy again (we're sort of STRs but didn't make much profit) his salary may well be enough, LOL. Unless we go for something really special (joke): http://www.rightmove.co.uk/viewdetails-20919263.rsp?pa_n=1&tr_t=buy (amazingly, this is not the most expensive house in Halifax, there is something even more 'unique' for a bit more ... http://www.rightmove.co.uk/viewdetails-18746939.rsp?pa_n=1&tr_t=buy
(bear in mind you can get a 3 bed house with a garden in a reasonable area for well under 200K).