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SECURITY THROUGH PROPERTY - HOW IT WORKS

It’s a straightforward fact of life there are times when you won’t have money to spare, however much you may want to contribute. This is often the case for buyers and their families.

How can the Family Mortgage help?

Our answer:
Security Through Property

 

You don’t necessarily need savings to help someone buy their first home. If a buyer has the 5% deposit, a family member can give a charge over some of the value in their own property.

By providing this security you lower the interest rate that the buyer might otherwise be able to get and so reduce their monthly payments. 

Things to remember

Family members providing financial support should be aware that if the buyer is unable to meet the mortgage payments, the security they have provided is at risk if the property needs to be sold and there is a shortfall.

However during the first 10 years we do provide the buyer with important protection. Subject to certain conditions we'll meet the mortgage payments for up to six months should they become unemployed through no fault of their own, on a one-off basis.

What next?

You probably have a lot of questions abut how the Family Mortgage could work for you - we are here to help! If you're in a bit of a rush but would like to know more, you can complete a 'Four Quick Questions' form here.

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 £352,260 payable over 34 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 31 years would require 37 monthly payments of £1,318.47 and 371 monthly payments of £1,665.44, plus one initial interest payment of £806.57.

The total amount payable would be £668,342.20 made up of the loan amount plus interest £315,208.20 and an application fee of £175, a product fee of £599 and a mortgage exit fee of £100.

The overall cost for comparison is 4.3% 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

Security Through Property
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Family Mortgage - Security through property case study
                   
Family Building Society
Ebbisham House
30 Church Street
Epsom
Surrey KT17 4NL
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