Family Building Society's Offset Mortgage is aimed at people wanting to make better use of their savings whilst keeping their money available for other purposes. It is available for property purchase or remortgage and can also be used by the self-employed and first time buyers and other borrowers whose family members wish to help them reduce the cost of owning their home.
If you're looking for our Buy to Let Offset Mortgage, please click here
There are two options available:
Option 1: Term Reduction
With this option, the offset savings help pay the mortgage off earlier. However, offsetting won’t have an impact on the monthly mortgage payments. Instead, the interest saved by offsetting the savings means more of the mortgage is paid back each month. The mortgage balance should reduce faster, and customers may be able to pay their mortgage off early. Plus, unlike a regular savings account, there is no tax to pay on the money held in an offset account. The future tax treatment of offset savings accounts may vary.
Option 2: Payment Reduction
With this option, the offset savings are used to benefit from lower monthly mortgage payments now, but the mortgage won’t be paid off any sooner. Interest saved each month will be used to reduce the amount of the next month’s mortgage payment, so the greater the savings offset, the lower the monthly payment will be. As customers will be using their savings to benefit from lower monthly payments immediately, their mortgage balance and remaining mortgage term will not reduce any quicker than if they were on a traditional non-offset mortgage.
At the Family Building Society, our goal is to make available flexible, easy to understand ways of helping people into the homes they want and to treat every potential borrower as an individual. Our experienced underwriters use their knowledge and insight to consider each mortgage application on its own merits. It is this uniquely personal service that allows us to help better serve our customers’ needs. We believe that linking a mortgage to savings accounts is an excellent way to help the self-employed or families, in particular, make more efficient use of money held in their savings accounts. It can also be a great help to younger borrowers whose families have savings and want to help them without necessarily giving them cash outright.
2 Year 2.25% Discounted Rate
2.64% INITIAL RATE
Followed by our managed mortgage RATE currently
5 YEAR 1.80% DISCOUNTED RATE
FOLLOWED BY OUR MANAGED MORTGAGE
Want to find out more?
Click here to download the Offset Mortgage brochure and the product summary for our Offset Mortgage. You can also use our offset calculator to see the difference between our two repayment options for your client.
If you're ready to submit an application for your client, download our Offset Mortgage application form. Please remember your client will also need to send in a cheque for £100 for the linked Offset Saver account.
If you have a specific case in mind and would like to discuss the options available to your client, please call us on 01372 744155. We can also arrange for your Business Development Manager to contact you.
Alternatively, you can email us at email@example.com and one of our team will get back to you.
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When Jemma Dawkins set up her business as a marketing consultant two years ago, establishing contracts with four businesses who provided her with regular work, she didn't think she would find herself penalised by the relatively short time her business has been running and the way she received her income.
Over the last two years she has been able to earn at a higher level than when she was employed. She is now thinking about potentially expanding to take on an assistant to handle some of the smaller projects she has been given. When it comes to getting a mortgage however, she has found herself penalised by the relatively short time her business has been running and the fact that her income, whilst reliable, comes in on a project by project basis rather than nice and neatly every month. When the money does come in, Jemma knows she will need to put aside roughly £30,000 across the year to meet her tax bill. That money can build up in her offset account. Including a transfer of savings, on average Jemma is able to offset the interest on £30,000 of her mortgage each month.