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Julie's story

"I'd like to have some additional money to help pay for some of life’s luxuries"

Julie, 73, moved into her four bedroom detached house with her late husband 40 years ago where they raised two children. Julie now has four grandchildren and her house is now worth much more than when they bought it.

Eventually Julie would like the majority of the equity in the house to be left to her children. She’s not ready to leave the house yet as she likes all the family coming to stay at Christmas and weekends, but Julie also knows that in the future she will have to move somewhere smaller when the house becomes too big for her on her own.

Julie-RLB-case-study-310x232 Julie has a comfortable income thanks to her late husband’s final salary pension with the civil service and her own private pension.

While Julie has enough income to comfortably live on each month, she would like to have a little extra to help pay for some of life’s luxuries. Julie would also like to be able to help contribute towards her grandchildren’s school fees each term, and also be able to afford to go on holidays regularly.

Julie chooses a mortgage of £100,000 which allows her to opt for an initial lump sum of £10,000 as well as receiving £750 each month for up to 10 years. This will enable her to help her family, and go on more holidays with her family and friends. In return she’ll pay us the ‘average’ interest due every month. At the end of the mortgage term in 10 years, Julie will sell her house and downsize as a means of paying off the capital outstanding on the mortgage, just as she always planned to do.

Find out more about how the Retirement Lifestyle Booster works:

 
Representative example:
A mortgage of £122,000 payable over 10 years on a discounted variable rate for 10 years at 1.10% below our variable Managed Mortgage Rate, currently 4.54%, would require 119 monthly payments of £259.25 plus one initial interest payment of £182.66.

The total amount payable would be £154,307.41 made up of the loan amount plus interest of £31,033.41, an application fee of £175 which includes the valuation fee, a product fee of £999 and a Mortgage Exit Fee of £100.

The overall cost for comparison is 3.7% APRC representative.

Using the representative example above, if interest rates rose by 1% at the end of year 3, your new monthly payment to us would increase to £340.50. If interest rates rose by a further 1% at the end of year 5, your monthly payment would increase to £426.83.

THE MORTGAGE WILL BE SECURED ON YOUR HOME

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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Family Mortgage
Helping Hand Saver
First Home Saver

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30 Church Street
Epsom
Surrey KT17 4NL
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