It is available for a property purchase or remortgage and can also be used by the self-employed and first-time buyers and other borrowers whose family members wish to help them reduce the cost of owning their home.
Keith Barber, director, business development of the Family Building Society, said: “It should be great for the self-employed, who have to keep money for tax aside during the year, and can struggle to get through the computer based credit assessments of some of the larger providers.
“Our goal is to make available flexible, easy to understand ways of helping people into the homes they want and to treat every potential borrower as an individual.
“Our experienced underwriters use their knowledge and insight to consider each mortgage application on its own merits. It is this uniquely personal service that allows us to help better serve our customers’ needs.
“We believe that linking a mortgage to savings accounts is an excellent way to help the self-employed or families, in particular, make more efficient use of money held in their savings accounts.
“So it can also be a great help to younger borrowers whose families have savings and want to help them without necessarily giving them cash outright”.
By linking a savings account to the mortgage, borrowers will be able to reduce the amount in interest they will pay.
The money held in the account is deducted from the total mortgage so interest is charged on a lower amount of capital.
The savings account can be the borrower’s own or a family members’ or a combination of the two.
