More in this section

FBS_FAMILIES_Thakur
 

HOW DEV THAKUR GOT A MORTGAGE AT A REDUCED RATE

Dev Thakur is 27. After a few years of living back at home after University, he’s landed his dream job. With his new salary, he’s finally able to afford the monthly payments on the kind of house he’d like to buy. He’s saved £10,000 for a deposit. Dev’s grandparents, Tanika and Anil, have savings they want to use to help him.
 


The Thakurs' story
15 Garden Close
Value: £200,000

Tanika and Anil put £50,000 of their savings into an Offset Account with us. By not receiving interest on the money, they pass on the benefit to Dev.
 
By using the Family Mortgage in this way, instead of paying interest on the full mortgage, Dev pays interest on the loan amount minus his grandparents’ savings of £50,000 which leaves £140,000. This reduces his monthly payments and also acts as security for Dev’s mortgage which means the interest rate he pays is also lower than he might otherwise have been able to get.  
 
This money remains Tanika and Anil’s and provided Dev keeps up the repayments on his mortgage then they can expect it to be returned in full after 10 years. The precise date depends on the combination of fixed rate mortgage periods chosen by Dev. The interest they lose is likely to be less than the amount Dev will save by not having to pay interest on the full mortgage amount.

Thakurs - case study

How it adds up - Thakurs
 

Built in safety net

Plus the Family Building Society helps by providing a safety net. Subject to meeting certain conditions we’ll meet the mortgage payments for up to six months if Dev becomes unemployed through no fault of his own. After six months, or when Dev returns to work if sooner, he will need to start making the payments again. 

Find out more about the other options:
 

You can use one, two or all three of these methods in combination to help a buyer get the home they want.

Representative example

A mortgage of £344,280 payable over 32 years initially on a fixed rate for 3 years at 2.69% and then on our variable Managed Mortgage Rate, currently 4.54%, for the remaining 29 years would require 37 monthly payments of £1,338.08 and 347 monthly payments of £1,669.93, plus one initial interest payment of £788.30.

The total amount payable would be £630,711.97 made up of the loan amount plus interest £285,557.97 and an application fee of £175, product fee of £599 and a mortgage exit fee of £100.

The overall cost for comparison is 4.2% APRC representative.

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

Knowledge-Hub-745x100

Family Building Society
Ebbisham House
30 Church Street
Epsom
Surrey KT17 4NL
Follow Us