EMPLOYEE SCHEMES

Some employers, especially banks, building societies and insurance companies offer mortgage loans to staff, sometimes at preferential interest rates. In fact, for many years, this was the only mortgage lending in which banks and insurance companies were involved.

Many of them restrict the preferential interest rate to a certain amount of the loan.

The funding for such loans would usually come from the capital funds of the firm. The Inland Revenue is currently re-writing its guidance on employee schemes. Further guidance should be sought directly from them. (IR134)