Family Building Society enhances Offset Mortgage product...

16 October 2015

With effect Monday 19 October 2015 Family Building Society will enhance its Offset Mortgage product to include a payment reduction option

The Family Building Society’s Offset Mortgage, which was first offered to customers earlier this year, has been enhanced following feedback from customers and mortgage brokers.

From Monday 19 October, Offset Mortgage borrowers will be able to use savings to offset against their mortgage to reduce their monthly payments.

This new benefit is an alternative to the existing ability to use savings to shorten the term of the mortgage whereby if one borrowed £200,000 and the borrower, parent or another close family member deposited £40,000 in to the offset savings account, interest is charged only on £160,000. In effect the borrower pays back more of the money borrowed each month, which can have a dramatic effect on how quickly the mortgage is paid off. Alternatively, under the new option, borrowers may elect for lower monthly payments, keeping the term unchanged. Customers have the flexibility to switch between the two options if they wish.