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Some questions answered

These questions relate to our Owner Occupier Offset Mortgage. If you have questions about our Buy to Let Offset Mortgage, please view our dedicated page or download our leaflet.

ONCE MY MORTGAGE COMPLETES CAN I CHANGE MY REPAYMENT OPTION?

You can choose to change between term reduction and payment reduction at any time provided this is no more than once a calendar month. Changes requested up to the 25th of a month take effect the following month; changes requested after this take effect a month later.

DOES MY CHOICE AFFECT MY PAYMENT DATE?
The Offset Mortgage Payment Reduction option requires a direct debit collection date that falls on or after the 15th of the month.

If your mortgage completes before the 15th of the month then after the first direct debit has been taken, the date for subsequent direct debits will need to be changed to fall on or after the 15th of the month. If you have completed on or after the 15th day then no action needs to be taken.

WHEN AND HOW DO I HAVE TO NOTIFY YOU OF MY CHANGE IN OPTION CHOICE?

You can notify us any time you wish, by phone, in writing, or by secure message via our online service. For requests received up to the 25th of a month, your direct debit amount will be changed on the 1st of the following month. For example, if you notify us on 20 January, your direct debit amount will change for your February payment. In this example your new direct debit date will be changed to fall on or after 15 February, however you can specify any date from the 15th until the end of the month.

ARE THERE ANY FEES?

Yes, there are fees charged for the Offset Mortgage. You can view our fees here.

WHAT ACCOUNT DO SAVINGS NEEDS TO BE DEPOSITED IN?

The account that is linked to the borrower’s mortgage is an Offset Saver account. Family members who wish to contribute can open and close accounts during the life of the mortgage. However, the borrower(s) must open an Offset Saver account and keep it open for the term of the mortgage, until it is redeemed, or until they switch to a non-offset product, whichever is sooner.

WHAT IF I NEED ACCESS TO MY OFFSET SAVINGS?

You can take money out of your Offset Saver account at any time, subject to keeping a minimum balance of £100. Of course the money taken out will no longer offset your outstanding mortgage. Only the money held in the account will count to reduce interest payable for the mortgage.

WHAT ARE THE MAXIMUM AND MINIMUM BALANCES I CAN HAVE IN MY OFFSET SAVER ACCOUNT?

The minimum you can start offsetting with is £100 and you can offset up to 100% of the mortgage amount.

You will be charged no interest at all for the months where 100% of the mortgage is offset by savings. Please remember that no interest will be paid on amounts held in the offset savings accounts linked to your mortgage even if the total exceeds 100% of the mortgage.

ARE MY SAVINGS IN THE OFFSET SAVER ACCOUNT PROTECTED?

Eligible deposits with the Society are protected by the FSCS. This savings product is covered by the FSCS.

COULD OTHER FAMILY MEMBERS HELP ME BY DEPOSITING THEIR SAVINGS IN MY ACCOUNT?

Yes, other family members can open an Offset Saver account linked to your mortgage to help reduce interest due. Including your own account, up to four savings accounts can be linked to an Offset Mortgage. Parents, grandparents, aunts, uncles, brothers and sisters all qualify to open an account. Eligible deposits with the Society are protected by the FSCS. This savings product is covered by the FSCS.

HOW MANY BORROWERS CAN APPLY FOR AN OFFSET MORTGAGE?

Up to four borrowers can be involved in an Offset Mortgage, so long as they meet our lending and affordability criteria and at least one of these must meet eligibility criteria. To find out more, download our lending criteria.

IS THERE A CHARGE IF I PAY OFF MY MORTGAGE EARLY?

When you first take out the mortgage, you will receive a discounted rate for a period of time. If you repay your mortgage in full during this period there will be an Early Repayment Charge. After the period of the discount, your rate will revert to the Family Building Society’s variable Managed FlexiMortgage Rate. Once this comes into effect, there will be no charge for early repayment.

CAN I OVERPAY?

Whether you choose to reduce your term or reduce your monthly payments, you can also make lump sum repayments and / or regular monthly overpayments to reduce the mortgage balance. There is no limit on the amount you can pay off in any one year.

CAN I UNDERPAY IF I NEED TO?

Yes, with our prior agreement you can underpay or take payment holidays equal to the value of overpayments you have built up earlier in the mortgage term.

WHAT IS THE MINIMUM MORTGAGE AMOUNT?

We will lend up to 80% of a property value, subject to a minimum mortgage amount of £45,000 and a minimum property value of £120,000.

CAN I INCREASE THE AMOUNT I BORROW?

Yes, the facility to increase your mortgage is available after six months at the rates which apply at that time – where different interest rates apply to different parts of the mortgage, the highest interest rate will be offset first.

WHAT IF I WANT TO MOVE?

If the new property meets our lending criteria, you will be able to transfer your Offset Mortgage to it. You may also be able to increase your Offset Mortgage to afford a more expensive property as long as you continue to meet our affordability and eligibility criteria.

HOW WILL I KNOW HOW MUCH MONEY HAS BEEN PLACED IN THE OFFSET ACCOUNTS ATTACHED TO MY MORTGAGE?

We will be able to let you know your own Offset Saver balance at any time and, on request by you, we can let you know the total amount within all the accounts attached to your mortgage. We will be unable to tell you each time family members’ Offset Saver accounts increase or decrease, but can let you know the total balance(s) on request.

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

Case Study Offset Mortgage Offset Mortgage UK
Family Building Society
Ebbisham House
30 Church Street
Epsom
Surrey KT17 4NL
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