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martymcfly

Kpmg Gives Staff A Foothold On London Property Ladder

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Apparently KPMG employ about 10,000 people so is it because they employ so many people they can get preference on their mortgage rates.

If so then why can't any large company get similar preference. Why can't small companies group together to get the preference.

Come to that if the UK is so much the oft touted Great Britain Limited then why can't everyone in the UK have preferential mortgage rates.

Or is it just because KPMG is part of the financial sector and it only applies to financial sector chums or something. One rule for one and another rule for the other.

Mind you most people buying a house would rather have cheaper houses than preferential mortgage rates. Better still both.

Edited by billybong

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KPMG - Kingdom's Ponzi Made Greater.

A very clever move by the partners there. Lock your staff in by giving them big mortgages on a low rate whilst they work for you. They look at leaving, have to remortgage, cannot afford it - dont leave. It effectively is a pair of iron handcuffs that the staff member is paying for themselves......

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A very clever move by the partners there. Lock your staff in by giving them big mortgages on a low rate whilst they work for you. They look at leaving, have to remortgage, cannot afford it - dont leave. It effectively is a pair of iron handcuffs that the staff member is paying for themselves......

and get a bit back, I am sure there is some sort of commission / bonus payable to the people who channel so much business the bank's way

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A very clever move by the partners there. Lock your staff in by giving them big mortgages on a low rate whilst they work for you. They look at leaving, have to remortgage, cannot afford it - dont leave. It effectively is a pair of iron handcuffs that the staff member is paying for themselves......

You beat me to it. I was going to say, what happens if you leave KPMG? Do you have to remortgage at a higher rate?

A kind of bonded labour.

Also, is this not another taxable benefit in kind? - if not then it sounds like a tax avoidance loophole ready to be exploited.

Neoliberal economics has as many unintended consequences as the planned economies it derides.

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A very clever move by the partners there. Lock your staff in by giving them big mortgages on a low rate whilst they work for you. They look at leaving, have to remortgage, cannot afford it - dont leave. It effectively is a pair of iron handcuffs that the staff member is paying for themselves......

It's been common in (retail) banking for decades. My dad had a preferential mortgage rate with NatWest as a member of their staff (bank manager) all through the 70s and 80s.

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It's been common in (retail) banking for decades. My dad had a preferential mortgage rate with NatWest as a member of their staff (bank manager) all through the 70s and 80s.

has it? I suppose the difference back then was you weren't taking on such a massive debt that 2% jump in your rate could cripple you financially?

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Also, is this not another taxable benefit in kind? - if not then it sounds like a tax avoidance loophole ready to be exploited.

employer preferential rate loans are generally as BIK for tax purposes; more precisely the difference in interest between the rate paid and a nominal rate is (but the accelerated amortisation slips through).

Edited by ChumpusRex

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employer preferential rate loans are generally as BIK for tax purposes; more precisely the difference in interest between the rate paid and a nominal rate is (but the accelerated amortisation slips through).

Preferential loan tax........but there are or was companies/employers that provided subsidised housing (and education)for their employees...think nurses and armed forces as well as banks....nothing new. ;)

Edited by winkie

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employer preferential rate loans are generally as BIK for tax purposes; more precisely the difference in interest between the rate paid and a nominal rate is (but the accelerated amortisation slips through).

And to be fair, the extra tax hit really does affect whether it's worth going for a standard mortgage or not.

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I seem to remember RBS staff appearing on MSE back in 2009 complaining about HMRC suddenly classing their staff mortgages as a BIK. The tax hit made the mortgages more expensive than 'normal' mortgages. Was quite a lot of squealing pigs.

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Your employer effectively owns the house you live in and can have you kicked out on to the street. Congratulations and Welcome to feudal England.

Much as I'm am a big HPC Fanboy myself, f*ck me - do you lot really think KPMG is chock full of idiots.

Be interested to know whether any of the comments about being locked in and screwed are being made by folk who are or have been employed by a services or consultancy firm.

A person in their 30s working there certainly should look to into the scheme, particularly in the light of recent London falls.

The smart ones will have £100k+ to put down, will wait for another 10-15% drop in prices and will have a pre-defined exit strategy.

I'm sorry to disappoint but most people at firms like that are not over-coached, over-reaching nephews and nieces. However much we want it to be true.

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Your employer effectively owns the house you live in and can have you kicked out on to the street. Congratulations and Welcome to feudal England.

I doubt it. Probably the company/bank arranging the finance effectively owns it and if you leave employment you'll lose the preferential rate. Yes, if you don't pay your mortgage you may end up on the street, same as any other mortgage.

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Much as I'm am a big HPC Fanboy myself, f*ck me - do you lot really think KPMG is chock full of idiots.

Be interested to know whether any of the comments about being locked in and screwed are being made by folk who are or have been employed by a services or consultancy firm.

A person in their 30s working there certainly should look to into the scheme, particularly in the light of recent London falls.

The smart ones will have £100k+ to put down, will wait for another 10-15% drop in prices and will have a pre-defined exit strategy.

I'm sorry to disappoint but most people at firms like that are not over-coached, over-reaching nephews and nieces. However much we want it to be true.

Hah hah I have worked with and for the big 4 in the past. They are not masters of the universe - probably 25% smart, 50% grafters, 25% useless twonks (often partners!). 95% do not understand personal finance and will not understand how this will limit their options.

No, it's not slavery, but it is handcuffs that many will not see until they get a job offer in a lower costs industry that would be better for their soul and family but unaffordable on a repriced mortgage.

Look at it this way - it makes getting into debt easier. Isn't that what we have proved time and again at HPC is bad for individuals?

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Much as I'm am a big HPC Fanboy myself, f*ck me - do you lot really think KPMG is chock full of idiots.

Be interested to know whether any of the comments about being locked in and screwed are being made by folk who are or have been employed by a services or consultancy firm.

A person in their 30s working there certainly should look to into the scheme, particularly in the light of recent London falls.

The smart ones will have £100k+ to put down, will wait for another 10-15% drop in prices and will have a pre-defined exit strategy.

I'm sorry to disappoint but most people at firms like that are not over-coached, over-reaching nephews and nieces. However much we want it to be true.

I'm with you there. Yip I remember sitting in a room listening to the head honchos entice their talented youngsters to London in the days before prices were insane. "Three times your salary and a little bit more and you'll be alright" -as indeed they were. Then.

Yip. stupid thes kids aint.

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Much as I'm am a big HPC Fanboy myself, f*ck me - do you lot really think KPMG is chock full of idiots.

Be interested to know whether any of the comments about being locked in and screwed are being made by folk who are or have been employed by a services or consultancy firm.

A person in their 30s working there certainly should look to into the scheme, particularly in the light of recent London falls.

The smart ones will have £100k+ to put down, will wait for another 10-15% drop in prices and will have a pre-defined exit strategy.

I'm sorry to disappoint but most people at firms like that are not over-coached, over-reaching nephews and nieces. However much we want it to be true.

:lol:

They're the smartest guys in the room.

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The comments that the company has an interest in the shelter of their employees miss the point.

Since successive governments have sat back and allowed financialization of housing to ramp the costs up, its the banks that are milking the public of tens of billions every year.

I might try to work out just how much the banks are stealing via financialization later.

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