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Easter nest eggs and a time for family finance

The practice of giving an egg for Easter in the Christian ethos is to signify the end of the austerity of Lent. After 40 days of self-denial, all that chocolate to binge on.

Yet the tradition of giving an Easter egg to family members dates back long before Christ. The first recorded finds of decorated eggs were from the 5000-year-old graves of Egyptians and Sumerians – Ostrich eggs.

It was Pagan practice too to give painted eggs to family members to celebrate Spring and, by association, new birth, new beginnings.

It’s also therefore a good time to be thinking about how we as a family might help each other out with the struggle of the younger generation to get on to the housing ladder and purchase a first home.

Buying a house is never easy – the process is widely considered to be among the most stressful adventures we can encounter in our lives – but for those facing the bewildering choice of fixed-rate mortgages, offset mortgages, self-employed mortgages et al for the first time buyer can be even tougher.

This is especially the case when the deposit for a first-time purchase can seem so far off.

This is why the Family Building Society created the Family Mortgage.

From talking to families, we know 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 chunky 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 you may have read.  

The Family Mortgage keeps interest rates low by allowing immediate family to contribute security towards a mortgage for a dependent.  Provided the first time buyer in question can put down a 5 per cent deposit the family can help.

It has three features which can be combined to allow the family to help out. Firstly, a family member can place money in a security account which is classed as a part of the deposit (and it pays interest). 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 Offset Account allows the family members to use their savings to help without actually having to give the money to them.

So how about that for an Easter nest egg?

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

By Steve McDowell 
   

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