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Chinese New Year is for Family

If there are three themes at the centre of Chinese culture they are good fortune, happiness and family.

As Chinese communities the world over celebrate the beginning of the Year of the Monkey – we can all reflect on new beginnings for family and how we might all help each other out. For the Family Building Society that means our unique Family Mortgage. Chinese New Year 2016

The first day of the Chinese New Year falls on the new moon between 21 January and 20 February which this year begins February 8. One of the other traditions associated with Chinese New Year is a thorough cleansing of the house to signify the sweeping away of any ill fortune and to make way for incoming luck.We can all use a bit of good luck of course but there is a more reliable way of giving better fortune to your family – with planning and saving.

Mortgage affordability among first time buyers is probably at its lowest point ever and we at the Family Building Society know that for many, buying your first home can seem nothing more than a distant dream. We know, from talking to families, that mums, dads, grandparents and aunts and uncles are as worried about it as are their young people.

We know too that help won’t necessarily come from high street lenders, and if it does there will be a significant premium to pay. The sad reality is that if your mortgage value is greater than 75% of the property value, you will pay a higher rate of interest than the headline figures generally promoted in the media or their branches by the big lenders. So the Family Mortgage was born.

The idea behind the Family Mortgage is that it keeps interest rates low by allowing immediate family to contribute security towards a family member’s mortgage.  Provided the first time buyer in question can put down a 5 per cent deposit, their family can help. There are three features which can be combined to allow the family to help out. Firstly, a family member can place money in a Family Security Account which acts as security for the mortgage (the money continues to earn interest while it reduces the monthly repayments for the buyer). Secondly, the Family Mortgage allows a family member to offer some of their own property’s value as security for the new property. And lastly, if family members are unsure of future commitments, then our Family Offset Account allows the family members to use their savings to help reduce the interest rate that might otherwise be available without actually having to give the money to them.

Family members providing financial support should be aware that the commitment is for 10 years and 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. So how about that for a good spring clean of the finances?

For more details, or to get some instant help from our friendly advisers visit the website here or call on 03330 140140.

As the Chinese  party-goers might say: Kung Hei Fat Chio - Happy New Year!

By Steve McDowell

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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