What is a flexible family mortgage?
By
HuutiMoney
Page last updated:
12/10/2022 |
Next review date:
12/10/2024
Flexible family mortgages
The Flexible family mortgage is a scheme offered by the family building society, it assists first time buyers who have a 5% deposit with three options.
The family building society will then provide a 95% mortgage.
The three options;
- A family member can put 20% or more in a savings account which pays interest. This serves as a collateral for the mortgage.This helps reduce the amount of interest a borrower has to pay although they still get a 95% mortgage.
- A family member can place a value of the mortgage in an offset savings account which reduces the amount of the mortgage which interest is charged on. This is also known as a family offset mortgage.
- A family member can use some of the equity in their property as collateral for the mortgage. This is also known as the family deposit mortgage.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.
