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HOW OLIVER ROBINSON CAN GET A MORTGAGE AT A REDUCED RATE

William and Jane Robinson want their son Oliver, 25, to have the same opportunities they had at his age. They have savings of £40,000 they want to use to help Oliver buy his first home. Bill and Jane are keen to support Oliver in every way possible - especially if it means getting the spare room back! 
 


The Robinsons' story
92 Ivy lane
Value: £200,000

Oliver is able to save £10,000 for a 5% deposit. So he now needs to borrow £190,000. The Family Mortgage allows Bill and Jane to move their money into a Family Security Account with the Family Building Society. Their savings work as security for Oliver’s mortgage which means Oliver can get a mortgage for 95% of the property value at a more favourable rate of interest than he might otherwise be able to get.  
 
Bill and Jane continue to earn interest on their savings and Oliver has more disposable income which he can start to save. Oliver will be responsible for making the mortgage payments and the arrangement will be reviewed at the end of each fixed rate period (three or five years) up to 10 years.
 
At the end of the 10 years, as long as Oliver's mortgage is up to date, Bill and Jane will have their money returned.

Security Account

How it adds up - Robinsons

 
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 should he become unemployed through no fault of his own. After six months, or when Oliver 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

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