More in this section

Some questions answered


WHO OWNS THE PROPERTY?
As with a traditional mortgage, you continue to own the property for the entire mortgage term.

WHAT HAPPENS IF I WANT TO MOVE?
You can. If you wish to move house during the mortgage term you can transfer the mortgage to another property provided it meets our lending criteria. You do this by selling your existing property, repaying the existing mortgage and taking out a new one on the same day on the property being purchased. The terms of the Retirement Lifestyle Booster are transferred as part of this. Remember that the maximum agreed advance (including money already drawn) must be no more than 25% of the value of the new property so some adjustment of your loan may be required if you are moving to a less expensive property.

WHAT’S THE MAXIMUM AMOUNT I CAN BORROW?
You can borrow up to 25% of the value of your property.

This will be used to:
• Pay you a monthly amount for up to 10 years
• Optionally, pay you a one-off lump sum at the beginning  (maximum lump sum being 24 times your chosen monthly payment, minimum £500)
• Repay your existing mortgage, if any.

For example, if your property is worth £480,000 the maximum Retirement Lifestyle Booster mortgage is £120,000.  If you have an existing mortgage of £20,000 to repay, then from the remaining £100,000 you could receive £833 per month with no initial lump sum.

Alternatively, if you want to receive a lump sum at the start then you will need to choose to receive a smaller monthly amount.

Using this example some of the possible combinations are shown in the table below.         

MONTHLY PAYMENT 

INITIAL LUMP SUM 

 £833

 £0

 £800

 £4,000

 £750

 £10,000

 £700

 £16,000

 £650

 £15,600

 £600

 £14,400

 £550

 £13,200

 £500

 £12,000


WHAT’S THE MINIMUM AMOUNT I CAN BORROW?
If you are currently mortgage free, the minimum amount you can borrow is £60,000 which gives a monthly payment to you of £500 per month for 10 years. If you are also using the Retirement Lifestyle Booster to repay your existing mortgage, the minimum amount you can borrow is £45,000. The minimum amount you can use for monthly advances is £30,000. This gives a monthly payment to you of £250 per month for 10 years.

WHAT’S THE MINIMUM PROPERTY VALUE?

The Retirement Lifestyle Booster is available on properties worth £180,000 and over.

WHEN WILL MY MORTGAGE COMPLETE?
If you are currently mortgage free and you have not requested an optional lump sum, your mortgage must complete on the 10th working day of the month, or the following working day if the 10th is a non-working day. If you are using the Retirement Lifestyle Booster to repay your existing mortgage, and / or you have requested an optional lump sum, your mortgage can complete on any day of the month. This is subject to our normal checks being satisfied e.g. references, proof of identity and affordability.

CAN I CHANGE THE AMOUNT I RECEIVE EACH MONTH?
No. Once the loan has started the monthly payments to you will remain at the same level each month for up to 10 years.

If you no longer wish to receive these, you can ask us to cancel this aspect of your mortgage. Once cancelled, the monthly payments to you cannot be restarted at a later date. Your payment to us will be recalculated on a standard interest-only basis, using the actual balance outstanding.

CAN I BORROW MORE MONEY?
No. The Retirement Lifestyle Booster is intended to be repaid after 10 years. For this to remain a realistic prospect additional borrowing is not available.

The optional lump sum is available only at the start of the Retirement Lifestyle Booster mortgage and cannot be taken later on.

IN A JOINT MORTGAGE, WHAT HAPPENS IF ONE BORROWER DIES?
The Retirement Lifestyle Booster continues in the name of the surviving borrower only.

WHAT HAPPENS WHEN THE LAST SURVIVING BORROWER DIES?
The monthly payments to the borrower will cease. As with a standard mortgage, the estate of the deceased will be responsible for the payments to us and for securing and insuring the property until it is sold.

HOW MUCH WILL I OWE AT THE END?
At the end of 10 years the amount of mortgage outstanding will be the same as the amount you have borrowed (i.e. the initial loan plus the amounts paid to you each month). Your monthly payments to us will have covered the interest due. This is subject to all payments due being made on time, as you would expect.

HOW OLD DO YOU HAVE TO BE?
The youngest borrower must be aged 60 or over at the time of the application, and the oldest borrower must be aged 79 or under at the time of application.

CAN I HAVE AN OUTSTANDING MORTGAGE WITH ANOTHER LENDER AND APPLY?
Yes you can. Your mortgage with your existing lender must be repaid at the start of the Retirement Lifestyle Booster using part of the loan we agree. The additional amount you borrow from us must be at least £30,000.

ARE THERE ANY FEES?
Yes. These will be shown in the Key Facts Illustration provided by your adviser. You can also find a list of all the fees that may apply during the mortgage on our website, familybuildingsociety.co.uk/fees

CAN I REPAY A LUMP SUM?
Yes. If you decide to repay during the first three years you will incur an Early Repayment Charge.

WHAT HAPPENS AT THE END OF THE 10 YEAR TERM?
At the end of the 10 year term you will need to repay the outstanding loan in full. This will be the amount you borrowed (i.e. the initial loan plus the amounts paid to you each month). You can do this by selling your property and moving to a less expensive one or using another source of capital to repay the outstanding amount.

IS THE RETIREMENT LIFESTYLE BOOSTER AVAILABLE TO PURCHASE A NEW PROPERTY?
No.

WHEN ARE THE MONTHLY PAYMENTS RECEIVED IN MY BANK ACCOUNT?
Our monthly payments will be sent to you on the 10th calendar day of each month, or the following working day if the 10th is a non working day.

WHAT DO I PAY TO YOU EACH MONTH AND WHEN?
Each month you pay us the ‘average’ interest due over the term of 10 years. The first payment by you is due one month after the Retirement Lifestyle Booster starts and then on the 5th of every month after that. Your payments are made by direct debit. By ‘average interest due’ we mean the amount required to leave the balance outstanding at the end of the 10 year term equal to the amount you have borrowed from us less any money you repay early.

WHAT INTEREST RATE IS CHARGED?
The interest rate charged is linked to the variable Family Building Society Managed Mortgage Rate. Current details are given in Key Facts Illustration provided by your adviser and are also available on our website.

WHAT CAN I USE THE MONEY FOR?
The money can be used for a variety of lifestyle reasons, although we do have some restrictions on what you can use the borrowing for. Please ask us for more information.

HOW CAN I APPLY?
You can either apply through an independent mortgage broker or directly through one of the Family Building Society’s Mortgage Advisers.

WHY IS THERE A DIFFERENCE BETWEEN THE EXAMPLE IN THE SUNDAY TIMES ARTICLE AND THE CHART ON PAGE 7 IN THE BROCHURE AND THE REPRESENTATIVE EXAMPLE AT THE BOTTOM OF PAGE 7 IN THE BROCHURE?
The example shown in the Sunday Times (23 October 2016) and the chart on page 7 of the brochure is based on borrowing £60,000 with the Retirement Lifestyle Booster mortgage, paid by us at £500 per month for 120 months with no lump sum payment at the beginning to repay an existing mortgage. This is intended to illustrate the concepts behind the product to better explain how it works.

The representative example shown on page 7 of the brochure is for a loan of £122,000 loan using an initial lump sum payment to repay an existing mortgage followed by the 119 monthly payments of £277.66. As the amount borrowed in the representative example is significantly higher than the Sunday Times example the interest charged is higher as well, hence the higher monthly payment by the borrower in the representative example.

THE MORTGAGE WILL BE SECURED ON YOUR HOME

 

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

FBS_Summary_Fee_buttons
CALL US ON
03330 140 140
REQUEST A CALLBACK
SHARE THIS
       
Family Building Society
Ebbisham House
30 Church Street
Epsom
Surrey KT17 4NL
Follow Us