Family Support Mortgage
We have developed a new type of mortgage to help customers to buy their first home. Raising a deposit can be a difficult financial juggling act of saving and ensuring you can meet your living costs.
Increasingly, first-time buyers need some support from their families to make that step onto the property ladder. That’s why, at Saffron, we have looked to provide new ways to help customers achieve this.
We now have a new way to help, which enhances our support of first time buyers
Our ‘Family Support Mortgage’ gives you access to a competitive interest rate, which is fixed for five years, when a family member holds funds in a Family Support Savings Account linked to the Mortgage, for the first five years of the mortgage.
Here's how it works:
- You provide 5% of the purchase price by way of a deposit (which can be a gifted deposit)
- A member of your family holds another 5 % of the purchase price in a Family Support Savings Account linked to the Mortgage
- The funds are held in a Family Support Savings Account for the duration of the five year fixed term of the mortgage
- The funds cannot be accessed for the five year fixed term of the mortgage
- At the end of the five year term, the funds are returned with interest paid
- You get the support you need to buy your home and a competitive interest rate during the term of the mortgage, which has a fixed rate for five years
- We pay for your valuation and there is no arrangement fee on the mortgage
- Your family can help to support you with your first mortgage, without necessarily having to gift you the money
Our Family Support Mortgage has been developed after we asked our Members what further help they thought we could offer them. They told us that they’d like a way of supporting their families financially in the early years of home ownership but, when they find their feet, to have the money they provided returned. These funds might be needed as part of retirement planning for example. A gifted deposit is often seen as an ideal way to assist, but ‘gifted’ money is not repayable which means it is not always the ideal solution.
In addition, the family member providing the support receives interest on their funds, at the end of the five year term. It’s important however, to make sure that your family can leave the funds untouched for the five year fixed term, as the funds cannot be accessed during that time.
THE SAVINGS MAY BE AT RISK IF THE BORROWERS DOES NOT KEEP UP REPAYMENTS ON THEIR MORTGAGE
First time buyers
Many first time buyers are engaged in one of the most complicated purchases they will ever make in their lifetimes, and in the months before, they have to learn about the process of buying a house, the complexity of legal searches, dealing with estate agents and adjusting to a new budget. We realise that it can all be a little daunting, so we’re here to help our customers every step of the way and have provided a helpful guide for support.
Your home may be repossessed if you do not keep up repayments on your mortgage