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Homes for Ukraine - important information can be found here.
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Monthly savings statements - From May we will be sending future monthly statements of electronic transactions on your savings account by email. More details on how to view your statement and the new process can be found here.
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Following the Bank of England’s decision to raise the Bank Rate by 0.25% to 1.00% on 5 May 2022, Windfall Bond and Tracker Savings Bond rates will increase by 0.25% from 1 June 2022. We are reviewing our other variable savings rates and will notify customers of any interest rate increase on their account. Tracker mortgages will change on 25 June 2022 and we will write to customers individually with revised payment details where the new rate exceeds the minimum rate (or ‘floor’) already applying to their mortgage. (Notice updated 06/05/2022)
How the Family Mortgage works
A great option for first time buyers or those wanting to step up the property ladder.
The Family Mortgage is a family help mortgage arrangement that can support buyers with a low deposit to purchase a property using security provided by their family, without the need for a gift or loan.
As long as you have at least a 5% deposit (which can be wholly gifted), and you have family that can give us additional security by using their savings or having a charge on their own property, we may be able to help.
The principle behind the Family Mortgage is simple.
Working with family members helps buyers:
- Get lower interest rates, meaning lower monthly payments;
- Pay interest on a smaller amount of the mortgage, meaning lower monthly payments;
- Increase your buying power when choosing a property to buy.
Working with buyers helps family members to:
- Put assets to work for the buyer as security for the mortgage;
- Help the next generation own their own home without giving the money as a gift.
Watch our short video that explains how the Family Mortgage works:
How can family members help?
Family members can help by providing security in one or a combination of three different ways;
What next?
You probably have a lot of questions about how the Family Mortgage could work for you - we are here to help!
For more information read our Family Mortgage lending criteria and our frequently asked questions from the buyer and the family helping the buyer.
You can check if a Family Mortgage is right for you and your family but completing our simple Family Mortgage enquiry form.
We have two calculators that show how the Family Mortgage works;
- Our affordability calculator shows how much you could borrow
- Our Family Mortgage repayment calculator shows
what your monthly repayments with the Family Mortgage would be.
Things to consider
There’s a lot to consider when buying a home, especially when using family support. To help guide you through those tricky conversations and decisions, we've produced a series of guides around the ‘Bank of Mum and Dad’.
With our Family Mortgage, it’s important both you and family members understand that by offering security for your mortgage with their savings or by placing a charge on their property, family members are responsible for making up any shortfall if you sell your house for less than the mortgage value, which is known as negative equity.
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Affordability calculator Family mortgage repayment calculator
Representative example
A mortgage of £159,140.00 payable over 31 years initially on a fixed rate for 5 years at 3.29% and then on our variable Managed Mortgage Rate, currently 4.39%, for the remaining 26 years would require 65 monthly payments of £682.94 and 307 monthly payments of £767.77 plus one initial interest payment of £444.66.
The total amount payable would be £281,515.15 made up of the loan amount plus interest of £121,401.15 and an Application Fee of £175, Product Fee of £599 and a Mortgage Exit Fee of £100.
The overall cost for comparison is 3.9% APRC representative.
What is a representative example?
This is an illustration of a typical mortgage and its total cost.
Download our brochure
Find out more about how the Family Mortgage works and the options available.
The Family Mortgage enquiry form
Complete our simple enquiry form to help us understand your requirements and if the Family Mortgage is right for you.