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    the majority of our variable savings rates have been increased from 24 June. Rate increases for Windfall Bond and Tracker Savings Bond apply from 1 July. (Updated 1 July.)

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Family offset account case study

How can you offset family savings to reduce the amount of the mortgage you pay interest on?

The Thakurs' story

15 Garden Close
Value: £200,000

Dev Thakur is 27 and has landed his dream job. With his new salary, he’s finally able to afford the monthly payments on the kind of house he’d like to buy. He’s saved £10,000 for a deposit.

Dev's grandparents, Tanika and Anil, have savings they want to use to help him but need the money for their retirement so aren't able to gift it to him. 

How can the Family Mortgage help Dev?

Tanika and Anil put £50,000 of their savings into an Offset Account with us. By not receiving interest on the money, they pass on the benefit to Dev.

By using the Family Mortgage in this way, instead of paying interest on the full mortgage, Dev pays interest on the loan amount minus his grandparents’ savings of £50,000 which leaves £140,000. This reduces his monthly payments and also acts as security for Dev’s mortgage which means the interest rate he pays is also lower than he might otherwise have been able to get. 
This money remains Tanika and Anil’s and provided Dev keeps up the repayments on his mortgage then they can expect it to be returned in full after 10 years. The precise date depends on the combination of fixed rate mortgage periods chosen by Dev. The interest they lose is likely to be less than the amount Dev will save by not having to pay interest on the full mortgage amount.

Thakurs Thakurs

Built in safety net

The Family Building Society helps by providing a safety net. Subject to meeting certain conditions, we’ll meet the mortgage payments for up to six months should Oliver become unemployed through no fault of his own. After six months, or when he returns to work if sooner, he'll need to start making the payments again.

Read our brochure to find out more about our Family Mortgage and how it can help you onto the property ladder.

Contact us

To find out more about our Family Mortgage you can contact our friendly New Business Team.

Monthly repayment calculator

Use our calculator to find out how much your monthly repayments would be with our Family Mortgage.