Staff Mortgages

Hi,

I work for a large bank and am currently in a consultation period pending likely redundancy.

I took out a mortgage with my employer late last year. The bank's mortgage was the most attractive on the market only after their subsidy was taken into account - otherwise I would have chosen a different deal. I think my financial adviser could back me up on this if necessary, assuming he still has notes on our meeting.

I have two questions:

1. Should I be expecting a payment in respect of the loss of the mortgage subsidy and the extra cost of the bank's deal over the deal I would have taken?

2. In the event that I fail to keep up payments on my mortgage, will I receive any legal or equitable protection from my former employer if they seek to take enforcement action? (Obviously, I'm not intending this should happen but forewarned is forearmed.)

Thanks and regards,

Paul

Hi Paul

Thank you for your question.

Have you asked your employer the question about this benefit that you receive?

I would be interested to know more about whether there is a contractual agreement involved with your mortgage subsidy and any clauses that were outlined and agreed when you took on this mortgage exclusive to employees of your Company.

I look forward to hearing from you again with these answers if you can.