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Never mind the labels, concentrate on the issues

Generally speaking, I’m not a fan of generalisations.

So it follows that I am not a fan of social nomenclature that generalise everyone by their, very general, socio-economic traits.

I find it all rather confusing, especially when our groupings have silly names.

We’ve had Generation X – that’s me by the way, because I was born between 1965 and 1980. It carries the name of a punk bank from Bromley in the 1970s. One wonders if the economist who cooked that one up did so after a decent lunch.
We succeeded the Baby Boomers – 1946-1965. Boom, boom.

There used to be a Generation Y but that has disappeared in favour of the completely incomprehensibly named Millennials who were born between 1980 and 1996. So, presumably, they are growing up in the Millennium? 

We hear a lot about what I prefer to call the under 35s. For example, they are creating the new industrial revolution of remote working, of virtual offices and how the Silicon economy is the new powerhouse. More labels.

We also know that this adult generation face some steep hurdles in their quest to own their own home..

This we have known for years. A ‘new’ report from a think tank called the Resolution Foundation has found a third of the younger generation face living in rented accommodation all their lives.

The report also reveals that a record 1.8m UK families with children rent privately, up from 600,000 15 years ago.

And, it reveals, 40 per cent of Millennials are still living in rented accommodation by the age of 30 so here we get a new label – “Generation Rent”.

We all know how desperate it is for many in our society and government is aware that what was not that long ago a problem  has now become a full-blown crisis.

I don’t want to appear rude about this worthy report – which you can read in full here- but the labels are distracting from the job at hand.

The Family Building Society has long provided solutions for those, er, Baby Boomers, who want to help out the next generation of their families to reach the goal of their own home.
The idea behind the Family Mortgage is that it keeps interest rates lower by allowing immediate family to contribute security towards a mortgage. Provided the first time buyer in question can put down a 5 per cent deposit the family can help.

There are three features which can be used individually or 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. As well as paying interest, it counts towards the amount used for the deposit without actually having to ‘gift’ the money.

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 reduce the amount of mortgage on which interest is charged.

The Family Mortgage – a label that says exactly what it does. Nothing confusing about that.

By Steve McDowell

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