lner mortgages

[john coffin]

Amazing what you find out when you read official documents. A friend is moving from their house in West London, and just got their deeds. I was fascinated to discover that the first buyer of their house, built in 1930, was a Railway Clerk, and got his mortgage from the LNER, a whole 650 quid.

Must confess I did not know that the LNER had a mortgage department for their staff. Mind you in light of today's interest rates it wasn't cheap, 6% interest, and weekly payments of just over a £1.00, that were deducted from the wage packet.
Reminds me of my time as an apprentice,when we bought our tools on a weekly payment agreement, oh for the days of Moore and Wright, Eclipse and Britool.!!!!!

Paul

[hq1hitchin]

Amazding what you find out when you read official documents. A friend is moving from their house in West London, and just got their deeds. I was fascinated to discover that the first buyer of their house, built in 1930, was a Railway Clerk, and got his mortgage from the LNER, a whole 650 quid.

Must confess I did not know that the LNER had a mortgage department for their staff. Mind you in light of today's interest rates it wasn't cheap, 6% interest, and weekly payments of just over a £1.00, that were deducted from the wage packet.
Reminds me of my time as an apprentice,when we bought our tools on a weekly payment agreement, oh for the days of Moore and Wright, Eclipse and Britool.!!!!!

Paul

Nor did I, Paul, but I do remember Yorkshireman Frank Mayes, onetime 34A fireman and Traction Inspector on the GE in my time, telling me that the GNR Building Society had been taken over by the Leeds long ago and that one of the conditions of the takeover was that the Leeds would give preference to railwaymen when deciding on mortgages. Frank was the local Provident Mutual rep and very astute financially, so presumably he knew what he was talking about.
On the LMS, I believe that Lord Stamp was also chairman of the Abbey National and that they had special arrangements for LMS staff.
The railways also ran their own savings banks and this continued well into BR days. An efficient and easy way of saving, money was deducted from your weekly wages and operated through the internal post so that cheques were sent out to the workplace and could be cashed at booking offices when a withdrawal was wanted. It closed just before privatisation, along with things like the GN Sick and Funeral Fund, of which I was a member, in order that those lovely people who were about to help themselves to the railways couldn't get their hands on our money.

[Andy W]

The BR savings bank at Stooperdale, Darlington was very popular amongst railwaymen that I worked with. For my first couple of weeks on the railway, I never understood why because the interest rate was so low and then Stan Falconbridge, the chief clerk at KX AMO said to me "if any of their missus ring you up on the GPO, tell em that code xxx (the payslip deduction code for the bank) is "the additional pension payment". You don't want them finding out about their beer money".

There would be real angst and grief if the envelope from Stooperdale hadn't arrived by Thursday, especially amongst those who had to take their pay packet home unopened or who had it taken off them by their missus as soon as they got it from the pay office window at the Cross.

Even in the 1980's when I was at Finsbury Park or Hornsey, the arrival of the bank envelope on a Wednesday or Thursday was eagerly awaited. And like Stan told me years before, all new admin clerks were told what to say if there were any external enquiries about a certain deduction code!

[john coffin]

As I said, interesting. Would be useful to see what the average wage of a Railway Clerk in West London in the late 20's early 30's was to understand how much of their weekly pay the mortgage was. Because I forgot the actual amount, I cannot be sure, but it looks like the mortgage was 100% and for about 15 years. If only companies did the same now for their workers!!!!!!!!

I know many companies had funeral plans, as well as the pension systems, I wonder though whether the mortgages were restricted only to London because of the cost. From family history, I think £5.00 per week in the 1930's was quite a lot of money, and the kind of salary a Bank Manager might earn, so maybe the guy was more than an "ordinary" clerk.

Paul

[bw1165]

My grandfather was in something called 'The Great Central and Joint Lines Friendly Society'. I think I still have a book for it somewhere and IIRC the senior officials were 'names' from the LNER. I think quite a few of the old companies were reasonably progressive in making various welfare provisions for their employees.

[john coffin]

reading more of the deeds, I find that every 3 weeks the borrower paid out at total of £3.25 at £ 1shill 8pence on old money per week.
so based on the 52 week year, it seems the mortgage would have been between 11 and 12 years. It was obviously held in abeyance during the second world war to some extent, but even so, he paid off the mortgage in December 1947, a total of 17 years. He also needed to insure it in his name and that of the LNER through the Yorkshire Insurance Company Ltd.

One of the conditions in the deed was that he could arrange at his own cost a 3000 year mortgage, interesting idea, but apparently something within the 1925 Property Act.

I wonder how many of the modern deeds have as much detail about the area, and also include covenants that the premises may not be used for selling or production of intoxicating beverages, how quaint?

Whilst deeds might seem boring, it is interesting how much of interest you can find in them if you are lucky.

Paul

[meldrum]

My grandfather was in something called 'The Great Central and Joint Lines Friendly Society'. I think I still have a book for it somewhere and IIRC the senior officials were 'names' from the LNER. I think quite a few of the old companies were reasonably progressive in making various welfare provisions for their employees.

My railway career started in 1978 in an ex CLC area and because my father was in the 'GC sick fund' (as we called it) I also joined it. I never had occasion to claim off it but recieved a small payout when it was wound up, some time in the late 1980's/early 90's I think.

[barry rhys]

... Yorkshireman Frank Mayes... very astute financially, so presumably he knew what he was talking about.

Sounds reight to me!

And a Happy New Year to all, even those west of the Pennines.

Neil