First Time Buyers Mortgages
Family Offset Mortgages
What are Family Offset Mortgages?
Offsetmortgages allow you to offset savings against the debt of your mortgage –reducing the interest payable and shortening the mortgage term. So if you had a mortgage of £150,000 and savings of £30,000 you would pay interest on a balance of £120,000.
As first-time buyers rarely have savings, a family offset allows you to use the savings of two separate family members instead.
Advantages of Family Offset Mortgages
Your family members can have access at any time to their savings.
For their peace of mind, you do not have access to the savings.
It is not actually costing them to help you.
Disadvantages of Family Offset Mortgages
The mortgage does not help you get on the ladder, just reduces interest repayments once you are there.
Your family members will not earn interest on their savings.
Lenders Specialising in Family Offset Mortgages
Newcastle Building Society amongst others - but check with a mortgage advisor to be truly up-to-date.
Family Offset Mortgages Advice
If you think a family offset mortgages might be right for you, you will want to involve your family in your decision making. Start out by seeking specialist, no-commitment mortgage advice
Features, advantages and disadvantages of specific first time buyer mortgages:
100% Mortgages l Cashback Mortgages l High LTV Mortgages l Graduate Mortgages l Professional Mortgages l Guarantor Mortgages l Family Offset Mortgages l Mortgages with Friends or Family l Mortgages at University l Rent a Room Mortgages l Affordable Mortgages l Interest only Mortgages l Part Repayment Part Interest Mortgages l Interest-free Start Mortgages l Shared Ownership Mortgages l Poor, Adverse or Poor Credit Mortgages l Key Worker Mortgages l Shared Equity Mortgages l 30, 35, 40 Year Term Mortgages
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