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HOW CHRISTINE WILSON GOT A MORTGAGE AT A REDUCED RATE

George Wilson is 55 years old and earns a reasonable income as a teacher. Now his children are grown up, he wants to help them buy a first home. But he doesn’t have savings to spare for this. Two years ago, his step-daughter Christine graduated from university. Christine moved back home to start saving towards her first home. 
 


The Wilsons' story
23a Brackley Road
Value: £150,000

Christine has saved £7,500 - a 5% deposit toward buying the flat she’s chosen. So she wants to borrow £142,500. George can’t spare any cash but he does own his home.
 
The Family Mortgage allows George to use some of the value of his home as security for Christine's mortgage. By doing this he can help Christine get a more favourable interest rate than she’d otherwise be able to get.
 
George isn’t using the whole value of his home as security, just the £30,000 needed to secure Christine a better interest rate. Assuming Christine keeps her mortgage up to date, the charge on George’s property comes to an end after 10 years. During that time he’s liable for £30,000 of any shorthall, if the flat has to be sold for less than the amount Christine then owes on the mortgage.

Wilsons - Case study
 How it adds up - Wilsons
 

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 Christine become unemployed through no fault of her own. After six months, or when Christine returns to work if sooner, Christine will need to start making the payments again.  

Find out more about the other Family Mortgage 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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