Specialist Mortgage Products
The Family Building Society has a dedicated underwriting department which looks at each case on an individual basis and we don't credit score, which means that we might be able to find a mortgage for a client who has been turned down elsewhere.
Our friendly, knowledgeable and dedicated team are used to making quick decisions - check out our case studies page to see how we can work with you to find solutions for your clients with a difference.
Lending Into and In Retirement
We have many years' experience of providing mortgages to those aged 65 and over. Our personal and individual approach to lending means we can advise on a variety of solutions that fit your unique needs, whether you are looking for a new mortgage or to remortgage an existing property.
If your client wants to make use of their home as an asset but isn't ready to move somewhere less expensive yet, check out our Retirement Lifestyle Booster. The mortgage pays out a fixed sum every month for 10 years, with the option to receive a lump sum at the beginning.
We have no upper age restrictions on our products, though the maximum mortgage term may be limited. View our maximum term guidelines. If your client is retired, annual pension income is accepted. Latest original pension statement, latest original P60 or original bank statements required.
Find out more about our later life lending.
Where applicants are self-employed and have more than a 33% financial stake in a business, their proportion of net profit for the most recent year is accepted. The most recent SA302 or online HMRC Self Assessment Return can be accepted showing:
- The Tax Calculation, showing the customer’s self-reported income and the HMRC calculation of the tax due on that income and;
- The Tax Year Overview, showing the total tax due and how much the customer has paid in tax.
Alternatively the latest audited accounts (prepared by a Certified or Chartered Accountant) may be accepted to determine whether the income to be used appears reliable.
An accountant's reference or other corroborative information may be required.
See our full range of owner occupier mortgages
Self-Employed - Case Study
A couple known to the introducer for many years wanting a mortgage of £242,000 on a purchase of £403,500 (60%). Other than a £140 per month car loan, there are no other outgoings or children. James has worked in a sales environment for 10 years and has a basic income of £12,000p.a. The salary was topped up with commission and the 2015 P60 showed total earnings of £92,850 p.a. Jenny is a self-employed writer and has a modest but reliable income. Her accounts showed £12,758 for 2014.
To support this level of borrowing we needed an income of £58,250. Jenny's average income in the last three years was £13,000 so we needed to confirm £45,250 for James. His last three years P60s were provided which confirmed earnings of £92,850 (2015), £43,634 (2014) and £44,026 (2013). Payslips to 30 September 2015 (month 5) showed total earnings to date of £15,598 broken down as £5,000 basic and £10,598 commission. This annualised £37,435 which was insufficient to support the borrowing requested.
However, James had been working for the same firm for 10 years and we were provided with further historic P60s which, whilst showing the uncertainty of the commission payments, did provide assurances that the applicant had consistently earned good levels of income. Over the last six years, which have been amongst the most difficult in living memory, he averaged £55,878 p.a. which satisfied us that he would have sufficient income to support the level of borrowing requested.
See our full range of owner occupier mortgages
Joint mortgage sole owner (JMSO)
Our JMSO arrangement enables family members to support borrowers and adult children to support their parents with affordability when applying for a mortgage. Up to two occupying owners can live in the property and up to two family member(s) can support the occupying owner(s). We call these family members ‘non-owning borrowers’ who won’t be living in the property but will be included on the mortgage. Non-owning borrowers will not be joint owners of the property. In most cases we will first of all establish the non-owning borrowers’ net monthly income. We will then add this figure to the occupying owners’ income to confirm the total loan amount available. We allow up to 2 owner occupiers and up to 2 non-owning borrowers on a JMSO mortgage (so up to 4 people in total will appear on the mortgage).
We must review these mortgages before you submit an application to ensure your client(s) is eligible.
We provide guarantor mortgages which enable us to consider parents’ or family members’ income to help with affordability on applications. If the parent or family member already has a mortgage or other credit commitments, these will be taken into consideration when calculating the affordability. The guarantor must be able to prove that they can cover the guaranteed amount of the mortgage loan, as well as their own existing commitments.
The mortgages are considered subject to full underwriting and meeting our lending criteria.
All or part of your client's loan may be on an interest-only basis. Details of any repayment strategy or savings plan must be provided. Types of repayment strategies accepted include proceeds of an endowment policy, savings plans such as ISAs or proceeds of the sale of a property (depending on circumstances).
Mortgage applications on holiday homes are available, subject to affordability which must be calculated against the applicants earned income without inclusion of any rental that may be received from the property. Interest-only loans will be accepted on this basis. It is intended that these properties should be for the applicants use but where the property may be occupied on a holiday let basis when the applicants are not in occupation. Applicants with portfolios of Holiday Homes will not be permitted.
Holiday homes will not be accepted where there is a formal AST or where they can only be used as a holiday home due to restrictive covenants within the deeds. Maximum Loan to Value will be 70%.
If your client's work requires them to live away from their main residence a loan on a second home may be considered, subject to affordability. Interest-only loans will be accepted on this basis.
Customers in tied accommodation
If your client is currently in or moving to tied accommodation linked to their employment, such as a boarding school teacher, vicar / minster, estate worker etc., we understand your client may not occupy their property until their current employment finishes, which could be many years in the future. To help with this, your client may wish to rent out their property. We will consider these applications for residential mortgage customers who need to rent out their property under a consent-to-let arrangement. Please contact us to get more details.
Loans are available on a Buy to Let basis, subject to certain conditions. Your client must be able to provide satisfactory evidence of identity, proof of income and hold a UK bank account. Applications may be subject to an increased product fee. Minimum loan amount: £100,000.
Additionally, we're able to lend to UK nationals working abroad, along with UK nationals and foreign nationals working in the UK but paid in a foreign currency, on an interest-only Owner Occupier mortgage. This is subject to certain conditions. Please refer to page 7 of our lending criteria for more information. For acceptable products and countries of residence, please click here or alternatively, please contact us on 01372 744155 or email our dedicated mortgage desk.
Loans are available on an owner-occupier basis subject to certain conditions. For example, if your client is a member of the Armed Forces currently serving elsewhere in the UK or overseas, and the property has previously been used, or is intended to be used as their main residence in the future.
Applications will be assessed on an individual basis.
We now accept Forces Help to Buy (FHTB) as a source of funds for a deposit. For more information on FHTB, please visit the Forces Law website.
Flexibility to change occupancy status and subsequent product terms will be considered on request. This may be subject to standard fees and Early Repayment Charges.