With effect from Monday 14th July the Family Mortgage and Low Start Mortgage will be launched as part of the launch of the new Family Building Society brand.

14 July 2014

Additional information for the Family Mortgage

Available for purchase up to 95% loan to value.
Where our lending is in excess of our standard maximum loan to value (75%) a charge will be taken over a family members property or savings (or a combination of both).
Charge over property and / or security plus borrower’s deposit must be equal to 25% of the value of the borrower’s property and charge will be for the amount of the additional security provided.
Valuation of family member’s property required at a cost of £75 per property.
Family member must have sufficient equity to cover the amount in excess of our standard maximum loan to value.
The total of secured lending due to all lenders across both properties, inclusive of our charge, must not exceed 75% of the total value of the borrower's and guarantor's properties.
Family member(s) will be required to seek independent legal advice before completion of the mortgage to explain their obligations.
The family member(s) and/or borrower(s) will be responsible for the cost of arranging the legal charge on the family member's property and any cost arising from independent legal advice given.
Where a family member's property is owned in joint names the application to provide additional security must be made in the same names.
Affordability assessment based on borrower's income and expenditure only – family member’s income and expenditure will not be taken into consideration.
Family members are not required to provide a personal guarantee.
In order that the mortgage balance starts reducing from the outset applications will only be accepted on a capital repayment basis.
Additional offset feature available reduce borrower’s monthly payments.
Society will appoint its own legal representative and will cover the cost of this.
Payment Waiver feature – subject to certain conditions we meet the mortgage payments for up to 6 months should the borrower become involuntarily unemployed.

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Additional information for the Low Start Mortgage

Available to customers adjusting to new financial circumstances or expecting a temporary change in affordability, e.g. following a relationship breakdown or maternity or paternity leave
Available for purchase or remortgage up to 90% loan to value
Five year stepped fixed rate combined with an initial interest only period for the first 2 years followed by automatic conversion to repayment for the remaining mortgage term
Property must be main residence
Borrowers must have had an owner occupier mortgage on a main residence prior to separation/divorce
Tightened impaired credit criteria applies – borrower’s must have no previous arrears, bankruptcies, CCJs, IVAs etc
3 months personal bank statements required in all cases

Customers should contact the Family Building Society Customer Centre on 03330 140140 or visit www.familybuildingsociety.co.uk should they require any further information.

ENDS