Notices

Offset mortgage FAQs

Some of your frequently asked questions answered about our Offset mortgage.

The following questions and answers relate to our Owner Occupier Offset mortgage.

We also offer Buy to Let Offset mortgages. You can find out more about how our Buy to Let Offset mortgages work and the options available.

 

You can choose to change between term reduction and payment reduction at any time provided this is no more than once a calendar month. Changes requested up to the 25th of a month take effect the following month; changes requested after this take effect a month later.
The offset mortgage payment reduction option requires a direct debit collection date that falls on or after the 15th of the month.

If your mortgage completes before the 15th of the month then after the first direct debit has been taken, the date for subsequent direct debits will need to be changed to fall on or after the 15th of the month. If you have completed on or after the 15th day then no action needs to be taken.

You can notify us any time you wish, by phone, in writing, or by secure message via our online service.

For requests received up to the 25th of a month, your direct debit amount will be changed on the 1st of the following month. For example, if you notify us on 20 January, your direct debit amount will change for your February payment. In this example your new direct debit date will be changed to fall on or after 15 February, however you can specify any date from the 15th until the end of the month.

Yes, there are fees charged for the Offset mortgage. You can view our fees here.
The account that is linked to the borrower’s mortgage is an Offset Saver account. Family members who wish to contribute can open and close accounts during the life of the mortgage. However, the borrower(s) must open an Offset Saver account and keep it open for the term of the mortgage, until it is redeemed, or until they switch to a non-offset product, whichever is sooner.
You can take money out of your Offset Saver account at any time, subject to keeping a minimum balance of £100. Of course the money taken out will no longer offset your outstanding mortgage. Only the money held in the account will count to reduce interest payable for the mortgage.

The minimum you can start offsetting with is £100 and you can offset up to 100% of the mortgage amount.

You will not be charged any interest at all for the months where 100% of the mortgage is offset by savings. Please remember that no interest will be paid on amounts held in the offset savings accounts linked to your mortgage even if the total exceeds 100% of the mortgage.

Eligible deposits with the Society are protected by the FSCS. This savings product is covered by the FSCS. For more information visit our FSCS protection page.

Yes, other family members can open an Offset Saver account linked to your mortgage to help reduce interest due.

Including your own account, up to four savings accounts can be linked to an offset mortgage. Spouse or partner, parents, grandparents, aunts, uncles, brothers and sisters all qualify to open an account.

Eligible deposits with the Society are protected by the FSCS. This savings product is covered by the FSCS. For more information visit our FSCS protection page.

Up to four borrowers can be involved in an Offset mortgage, so long as they meet our lending and affordability criteria and at least one of these must meet eligibility criteria.

To find out more, download our lending criteria.

When you first take out the mortgage, you will receive a discounted rate for a period of time. If you repay your mortgage in full during this period there will be an Early Repayment Charge. After the period of the discount, your rate will revert to the Family Building Society’s variable Managed FlexiMortgage Rate. Once this comes into effect, there will be no charge for early repayment.
Whether you choose to reduce your term or reduce your monthly payments, you can also make lump sum repayments and / or regular monthly overpayments to reduce the mortgage balance. There is no limit on the amount you can pay off in any one year.
Yes, with our prior agreement you can underpay or take payment holidays equal to the value of overpayments you have built up earlier in the mortgage term.
We will lend up to 80% of a property value, subject to a minimum mortgage amount of £45,000 and a minimum property value of £120,000.
Yes, the facility to increase your mortgage is available after six months at the rates which apply at that time – where different interest rates apply to different parts of the mortgage, the highest interest rate will be offset first.
If the new property meets our lending criteria, you will be able to transfer your offset mortgage to it. You may also be able to increase your offset mortgage to afford a more expensive property as long as you continue to meet our affordability and eligibility criteria.
We will be able to let you know your own Offset Saver account balance at any time and, on request by you, we can let you know the total amount within all the accounts attached to your mortgage. We will be unable to tell you each time family members’ Offset Saver accounts increase or decrease, but can let you know the total balance(s) on request.

As you have chosen an Offset mortgage, your first mortgage payment will not take into account any money held in the Offset Saver account, and will be calculated in line with a ‘standard’ mortgage. Offsetting will take effect for payments due after the first payment we collect. The interest added to your account will be adjusted immediately, following a deposit or withdrawal. If you offset your savings within the first month after completion, the difference between your monthly payment and the interest you have saved will reduce your mortgage balance.

 You will not benefit from any excess money held in the Offset Saver account which exceeds 100% of the mortgage owed. You can view your account balances via our Online Service, and manage your Offset Saver balance accordingly.

 

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