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Calculate your way onto the housing ladder

Congratulations! You have been approved for a mortgage and can move into your first owned home.

Wonderful words. Yet in these times, for first time buyers at least, they can seem further away than ever.

But fear not, there is a solution. The first step you need to do is to work out what you can afford and the second is to work out how to get there. And, of course, on both counts the Family Building Society is here to help. For the first goal you can use our affordability calculator. Image of a calculator and a pencil and a hand drawn picture of a house

To assist you in reaching the final destination; this second calculator will show how our unique Family Mortgage can help you and your family to get you onto the property ladder for the first time.

 The Family Mortgage is designed to keep interest rates low by allowing your wider family to contribute security towards your mortgage.

This means, provided you can put down a 5% deposit on a property, your family can help in three distinct ways that help bring down the costs and make your mortgage repayments more affordable. In effect, you can get a 95 per cent mortgage at a much better rate than you would compared to many other lenders. These three ways are:

• Security Account – Direct family members, mum and dad or grandparents, say, even an uncle or aunt can place money in a Family Security Account which provides security for the buyer’s mortgage. Even better - for the contributor of the cash amount, the money placed in the security account also earns interest.

• Security Through Property – This allows a family member to give a charge over some of the value in their own property as security for your property. By providing this security you lower the interest rate that the buyer might otherwise be able to get and so reduce their monthly payments.

• Offset Account – If family members are unsure of their future financial commitments, then an offset account may be a better option. The account allows family members to use their savings to help the buyer without having to “give” the money to them. The money is placed in a Family Offset Account which acts as security for the buyer’s mortgage. As a result this reduces the amount of the mortgage on which interest is charged, making it more affordable for first time buyers.

Better still, all three of these options can be combined, allowing family members to contribute in any way which suits them. 

After ten years, we review the mortgage, and providing the mortgage payments have been kept up to date, it will no longer be necessary to have family members providing security on your mortgage.

It’s all designed to bring you closer to those magic words – "Congratulations! You have been approved for a mortgage".
If you need further help, feel free to call one of our highly-trained and friendly staff on 03330 140140.

 Steve McDowell

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