Mortgage Dilemma

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Soldato
Joined
25 Apr 2007
Posts
5,255
A few months ago I used to work for a large financial organisation. At the time I took advantage of the employee mortgage scheme, which is at an extremely competitive rate. Six months down the line after moving to pastures new, they haven't put me back on the standard rate I should be paying. I left on amicable terms through the usual channels, and had thought it may take them 3 months or so to catch up with the mortgage. Having given them plenty of time, I now get the impression they don't realise.

So on to my question - morality aside for one moment, am I in any way acting illegally in not actively telling them? I only have a small mortgage - it's probably a £60-70 quid a month difference which is nice to have, but not really a killer to lose.
 
Have a careful read of the T&Cs. If it mentions that it's a preferential rate for employees, then you'll need to tell them. Otherwise, I don't think you need to do anything.

Edit: put it this way. If you're underpaying right now, they will definitely eventually find out and you'll owe them thousands. You don't actually lose anything by contacting them now to check.
 
As far as morality is concerned, surely it's the lender's responsibility to ensure rates etc. are correct? Therefore, say nothing.

As far as legality is concerned, I agree with SlyReaper - check the small print.
 
Jokester said:
Could this have been classed as a BIK from your last employer? Might be tax implications for you if it was.
Click to expand...

It is taxable. They were meant to tell the tax people as soon as I was moved onto the preferential mortgage (20 months ago), but I got a letter about 2 month ago telling me they'd only just done so. Their efficiency doesn't appear to be amazing.

Good advice on the T&Cs, but will I end up owing them this money? I have a feeling I'll just come clean with them in order to remove the uncertainty.

EDIT - the mortgage is meant to return to their Standard Variable when I leave.
 
Hi Mulpsmebeauty,

it won’t cost you anything to take some time out to scan the small print, as slyreaper says ‘if it mentions that it’s a preferential rate for employees’ then you will obviously have to notify them. However, if there is no mention, then the best thing to do would still be to contact them to clarify this issue?

Additionally, money has a nasty way of coming around and then disappearing into thin air again, the best thing to do would be to contact them – it won’t cost nowhere near as much now, if there is a mistake, and it gets rectified, than in a few years when you receive a letter notifying you of the huge sum that you could owe!

Hope we helped, Bills Comparison.
 
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