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How Jemma Dawkins set aside her savings to help reduce her mortgage interest payments

When Jemma Dawkins set up her business as a Marketing Consultant two years ago, establishing contracts with four businesses who provided her with regular work, she didn't think she would find herself penalised by the relatively short time her business has been running and the way she received her income.
 


"I have my own business, so I want a better deal on my mortgage"

Jemma's StoryMortgage Offset Walking image

Over the last two years she has been able to earn at a higher level than when she was employed. She is now thinking about potentially expanding to take on an assistant to handle some of the smaller projects she has been given.

When it comes to getting a mortgage however, she has found herself penalised by the relatively short time her business has been running and the fact that her income, whilst reliable, comes in on a project by project basis rather than nice and neatly every month. When the money does come in, Jemma knows she will need to put aside roughly £30,000 across the year to meet her tax bill. That money can build up in her Offset Saver account. Including a transfer of savings, on average Jemma is able to offset the interest on £50,000 of her mortgage each month. 

           

How it adds up Jemma

       

Representative example

A mortgage of £87,356 payable over 14 years on a discounted variable rate for 2 years at 2.45% below our variable Managed Flexi Mortgage Rate and then on our variable Managed Flexi Mortgage Rate, currently 4.64%, would require 23 monthly payments of £604.23 and 145 monthly payments of £693.73, plus one initial interest payment of £162.77. 

The total amount payable would be £115,999.91 made up of the loan amount plus interest of £27,294.91, an application fee of £430 which includes the valuation fee, a product fee of £999 and a mortgage exit fee of £100.

The overall cost for comparison is 4.3% APRC representative.

Return to the Offset Mortgage home

           

Offset Mortgage Brochure


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

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