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Security through property case study
How can the value in a family home be used as security for a Family Mortgage?
The Wilsons' story
23a Brackley Road
George Wilson is 55 years old and earns a reasonable income as a teacher. His step-daughter Christine has recently graduated from university and he'd like to help her buy her first home. However, he doesn’t have savings to spare.
How can the Family Mortgage help Christine?
Christine has saved £7,500 - a 5% deposit toward buying the flat she’s chosen and wants to borrow £142,500. George can’t spare any cash but he does own his home.
The Family Mortgage allows George to use some of the value of his home as security for Christine's mortgage. By doing this he can help Christine get a more favourable interest rate than she’d otherwise be able to get.
George isn’t using the whole value of his home as security, just the £30,000 needed to secure Christine a better interest rate. Assuming Christine keeps her mortgage up to date, the charge on George’s property comes to an end after 10 years. During that time he’s liable for £30,000 of any shortfall, should the flat has to be sold for less than the amount Christine then owes on the mortgage. This could mean he'll have to sell his house to find the money.
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.