Service update - due to planned essential maintenance our Online Service will be unavailable on Friday 28 January from 18:00 until Saturday 29 January 12:00.
Following the Bank of England’s decision to raise the Bank Rate by 0.15% to 0.25% in December 2021, Windfall Bond and Tracker Savings Bond rates increased by 0.15% from 1 January 2022. Tracker mortgages changed from 25 January and we have written to customers individually with revised payment details where the new rate exceeds the minimum rate (or ‘floor’) already applying to their mortgage. We will be considering our other savings and our variable mortgage rates after the Bank of England MPC meeting on 3 February. (Notice updated 19/01/22)
- Please note that the Premium Saver (5) has now been withdrawn from sale.
If you have opened an account, you may add funds until 3pm, 7 February 2022, after this no additions will be allowed.
Real life mortgage case studies
Our case studies show how our mortgage products have helped real life customers. Read their stories.
The mortgage will be secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
First time buyers
Having rented for years, Emily (33) a Senior Administration Officer and Phil (31) a Telecoms Engineer, were keen to finally buy their first property together. They didn’t have a huge deposit saved but hoped it would enable them to afford a place of their own in their hometown of Southampton.
They were house hunting during the Covid-19 pandemic, when many lenders were pulling their higher Loan to Value (LTV) mortgages from the market, particularly affecting first time buyers and those with smaller deposits. When Emily and Phil did find a mortgage product for the house they wanted, it was pulled before they could get a mortgage offer.
"Unfortunately, we did not have a big deposit saved so we were finding a lot of lenders very restricting"
A family affair
Emily’s dad Paul, who works as a researcher at the same mortgage broker being used by the couple, was aware of our Family Mortgage, which was eventually identified as a potential option.
At that point, Emily and Phil had not considered a family assisted mortgage. The Family Mortgage can help buyers with a low deposit to purchase a property using security provided by their family, without the need for a gift or loan. The buyer just needs a minimum of 5% deposit (which can be wholly gifted), and their family can provide additional security by using their savings or a charge on their own property.
The Family Mortgage allowed Paul and his wife to use some of the value in their own home as security for their daughter’s mortgage. This meant they were able to help their daughter and her partner buy a nice, terraced house without having to make a substantial withdrawal from their savings.
“We were very pleased to be able to do this, as it provided a viable option for my daughter and her partner to buy a nice house rather than having to settle for a flat”
At the Family Building Society, we look at each application on a case by case basis. With their parents providing security, the couple were able to borrow the amount they needed at a rate they could afford, to secure the home they wanted. The Family Mortgage made sense and provided an effective solution.
“It’s a great option that allows your family to assist you. I’m unsure whether other family assisted mortgages would have been suitable or provided us with the same rate. We would recommend the Family Building Society for people in similar situations, where they are unable to save huge deposits due to the increased cost of living such as rent.”
The alternative for Emily’s parents would have been to help their daughter find a substantially larger deposit.
“The Family Building Society provided a solution to a rather difficult problem.”
Are you a first time buyer with a small deposit?
Even with a small deposit our Family Mortgage allows family members to help you take that first step onto the property ladder. Find out more about our first time buyers and family assisted mortgages.