RM2 > Resources > News > Do you have a mortgage benefit?

Do you have a mortgage benefit?

Posted on December 12, 2012

Most of your employees will need a mortgage at some point in their lives and it can be the source of considerable stress, leading to lower performance at work or 'presenteeism' if you are into your jargon! We specialise in providing mortgage services via companies as a staff benefit. A mortgage service benefit can help keep your staff happy and stress free. This can be used for First Time Buyers, any residential property purchase, or to switch a mortgage to save money.

  • It could save your employees money on their mortgage
  • It can help them onto the property ladder
  • We waive our normal administration charge, a saving of £495
  • We provide financial education

Existing mortgage holders can save money

If an employee saves just 0.5% per annum on a £100,000 interest only mortgage, it equates to saving £41.67 per month or £500 each year.  Some of our clients have saved over 2% on their payments which, on the example of a £100,000 interest only mortgage, is a saving of £166.67 per month or £2,000 each year. Obviously those with larger mortgages stand to save substantial sums of money, but even at the lower end the savings are worth having.

Why don't more people save money by switching their mortgage?

Well, it can be complicated to do it on your own.  The media spotlight has recently been shining brightly on the utility providers regarding their tariffs and encouraging people to switch providers, often to make savings of £100 or £200. Mortgages are far more complex, there are literally thousands of options to choose from and the sums of money are far greater. People need encouragement to switch energy providers, but they often need help to switch mortgage providers, and we are here to hold their hand throughout the complete process.

People need help getting on the property ladder these days

Gone are the heady days of easy credit and first time buyers now have to scrimp and save to get a deposit together; or more likely, ask mum and dad. Although, it's not just the deposit as there are a whole host of other conditions attached to mortgages/home buying and navigating them is not a simple task. At Radcliffe & Newlands, we provide a full explanation of the buying process, tips for negotiating on price, an explanation of the different costs and how much your employees can afford to borrow. We then select the best lender, apply, deal with any issues that might arise and take care of the admin for them.

Financial education the property buying process demystified

Financial education is increasingly coming to the fore as people realise its importance. When you provide a pension, does anybody explain to your employees how they work? It's a serious knowledge gap. We provide seminars on a range of topics, but our most popular is usually the First Time Buyer seminar. Designed to fit within a lunch hour or after work, feedback from these seminars is always glowing and gives staff much more confidence.

Employers often create a great reward package only to see low take up rates from employees who don't appreciate the value of what is on offer to them. You know you have a problem when staff focus on pay and ignore the benefits.

We see a fantastic response to educational seminars across all topics so there is clearly an appetite for it. It's a way of enhancing the value of the benefits on offer, but it is also a significant benefit in itself.

It's a zero cost benefit

As an employer, you can provide this benefit to all staff at zero cost. We receive income from the mortgage lenders and we waive our admin fee so your employees don't have to pay a fee either. We are experienced at assisting you with employee communications and can provide whatever assistance you need.

If you don't already offer a mortgage benefit, why not?

If you would like more information on anything covered in this article, please contact Jason Ransted via jransted@rad-new.com.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

 
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