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Family security account case study
How can family savings be used without the money being gifted or loaned?
The Robinsons' story
92 Ivy Lane
Bill and Jane Robinson want to help their son Oliver, 25, to buy his first home and have £40,000 in savings. They're keen to support Oliver in every way possible.
However, they know they'll need their savings for their retirement and aren't able to gift the money to Oliver and are wary of loaning it to him in case they don't get it back!
How can the Family Mortgage help Oliver?
Oliver is able to save £10,000 for a 5% deposit and needs to borrow £190,000. The Family Mortgage allows Bill and Jane to move their money into a Family Security Account with the Family Building Society. Their savings work as security for Oliver’s mortgage which means Oliver can get a mortgage for 95% of the property value at a more favourable rate of interest than he might otherwise be able to get.
Bill and Jane continue to earn interest on their savings and Oliver has more disposable income which he can start to save. Oliver will be responsible for making the mortgage payments and the arrangement will be reviewed at the end of each fixed rate period (three or five years) up to 10 years.
At the end of the 10 years, as long as Oliver's mortgage is up to date, Bill and Jane will have their money returned.
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.
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.