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Keep calm and get a mortgage

No-one knows better than us how hard the plight of the first time buyer is in this day and age.

It is our business, after all, and we know exactly how stressful it can be.

Of course we can reflect that, in earlier generations, you may have been given a Lee Enfield rifle and a tin hat and been asked to go over the top of your trench, or been sent off in a Spitfire after just a few hours training. Fortunately, the way we live today has different stresses.

So many issues face the younger generation of today. Decades of house price inflation have made it progressively harder for first time buyers, with even modestly priced homes seemingly out of reach. Then you add in a dysfunctional housing market, pressure on lenders to tighten their criteria on who they lend to and how much, Stamp Duty, a chronic shortage of housing supply and a widening gap between wages and affordability. That’s a recipe for stress if ever you read one.

As if to prove our point, a recent report highlights of all the issues affecting this market*. It makes for some unhappy reading.

The results show that the process of buying a first property causes so much stress for the participants that it has made more than one in three (35 per cent) actually ill and almost the same number (34 per cent) report that it has caused significant problems with their relationships.

Furthermore, nearly one in five (17 per cent)  reported it took them two or even three attempts to buy their first home, a quarter had to delay by at least two years and 40 per cent said they had to rebuild their lives due to the compromises they had to make to get on the housing ladder.

Phwoosh. That would be enough to test the patience of a monk.

Many first time buyers quite simply feel marooned.

Well, that’s where we come in with our Family Mortgage.

Parents, grandparents, even aunts and uncles can help in a painless way to help you youngsters get that first foot on the ladder.

The idea behind the Family Mortgage is that it keeps interest rates low 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.

So keep calm and get on the ladder.

For more details, or to get some instant help from our highly qualified and friendly staff visit our Family Mortgage page or call on 03330 140140.

* Source: http://www.financialreporter.co.uk/mortgages/ftbs-left-with-stress-and-relationship-strain-by-buying-process.html

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