Choosing an Offset mortgage and making home improvements
Having lived in their home for seven years, Tom and Pamela felt it was time for some home improvements. Not only would it make their home a more enjoyable place to live, it was an opportunity to boost the value of their property.
From having a new kitchen, new flooring downstairs and adding an ensuite to the spare room, they had big plans. Although they had the savings available, they didn’t want to dip into their reserves just yet.
Tom and Pamela reached out to a few lenders however they quickly discovered that, unfortunately, their age was preventing them from getting the best deals available. It wasn’t until a friend of theirs suggested getting in touch with the Family Building Society that they spoke with one of our inhouse Mortgage Advisers.
“We liked that the Society had a name which so strongly reflects its values. It’s a nice change from the big and muscly companies out there.”
A mortgage option that fits
Although they hadn’t initially considered an Offset Mortgage, once the adviser had explained the advantages of this type of mortgage for their requirements, both Tom and Pamela decided to opt for this over a traditional loan.
“The Family Building Society offered us something we were not going to find anywhere else. You were so flexible to our circumstance and everything went smoothly.”
The Offset Mortgage can be a good option for those who don’t need to use their savings at present and want to keep them aside for a later date.
Offsetting your savings against a mortgage means that any money placed into a linked savings account is automatically deducted from the amount of interest you’re charged on the mortgage. Although the money in the linked savings account won’t earn you any interest, the interest rate you typically pay for borrowing money will be higher than the interest you would have earned from a savings account. Because you are charged less interest than a traditional mortgage, there are two main benefits available to you:
- you can reduce the length of time it takes to pay off your mortgage or
- you can reduce your monthly repayment amount.
The mortgage enabled Tom and Pamela to reduce their outgoing costs for their home improvements whilst giving them manageable monthly repayments.
“We call it a human being mortgage.”
Having taken advantage of what the Family Building Society has to offer, Tom and Pamela state that something that could have been so stressful was actually a very “calm experience”.
Tom added that he feels comfort in knowing that if anything were to happen to him, the Family Building Society would offer nothing but “sensible advice”.
Want to know more about Offset mortgages and how they work?
Discover our range of Offset mortgages which allow you to reduce the amount of interest you pay by offsetting your savings against your mortgage.