Family considers launching offset mortgage for the self-employed

Ryan Bembridge

February 27, 2018

Family Building Society is exploring whether to launch a residential offset mortgage for the self-employed operating through a limited company.

The product, which could launch in the second half of the year, would allow money saved in a deposit account with the society to offset the mortgage balance.

Those with a £100,000 mortgage and a £30,000 account would only pay the interest rate on £70,000 of the mortgage, if all goes as planned.

Keith Barber (pictured), director of business development at Family Building Society, said: “If you are keeping money in a company you can’t use it to benefit yourself normally.

“We are looking to create an arrangement where you can to benefit from a better term or lower interest payments.”

The product will only be available to experienced borrowers.

Family already has a number of other products which offset savings against the mortgage both in the residential and buy-to-let space.

Enter your e-mail address to receive updates straight to your inbox

Show Comments