Family Building Society launches buy-to-let offset mortgage

by: Edward Murray
  • 03/04/2017
  • 0
Family Building Society launches buy-to-let offset mortgage
The Family Building Society has launched a buy-to-let offset mortgage product in a bid to help private residential landlords mitigate the impact of tax changes that apply from 6 April.

Keith Barber (pictured), director of business development at the Family Building Society, said: “Offsetting savings against your mortgage reduces the amount of interest charged. The effect of this, other aspects being unchanged, is to increase the profit from letting and increase the landlord’s overall net cash flow.”

The new product is a two-year discount at 2.99% with a product fee of £999. After two years the mortgage will revert to the society’s standard variable rate of 5.29%. The maximum loan to value is 65%.

Borrowers may choose one of two options, reduced monthly mortgage payments or term reduction. In the first instance, interest saved every month will be used to reduce the amount of the borrower’s next month’s mortgage payment. This option is available on interest only as well as capital and interest repayment mortgages.

The term reduction option helps the borrower to pay off the mortgage earlier, but won’t reduce the monthly payment. This option is only available on capital and interest repayment mortgages.

Barber added: “With changes to the tax treatment of mortgage interest starting this week, making best use of your resources has never been more important for landlords. This may be particularly important for retired investors relying on letting as part of their retirement income.”

There are 0 Comment(s)

You may also be interested in


Keep up-to-date with all the breaking bridging and short-term lending news and analysis, from regulatory changes to product innovation and inside market knowledge. Take a look at our broker and lender case studies showing short-term finance in practice.


Find all the news, opinion and analysis for property finance brokers specialising in commercial and semi-commercial mortgages, alternative and development finance for commercial investments in residential projects.

Second charge

Stay up-to-date with the latest news, analysis and opinion on the secured loan market as it evolves into a mainstream finance option following European regulation on 21 March 2016.

Complex buy-to-let

Whether it’s a complicated asset or a complex customer, you’ll find out all the breaking buy-to-let news in this section. From limited companies to portfolio landlords, student lets to a House in Multiple Occupation, we’ve got all bases covered with our up-to-the-minute news, analysis and opinion.

Mortgage Solutions

Find all the breaking news, analysis and industry comment on Specialist Lending Solutions' sister site, Mortgage Solutions

Read previous post:
John Goodall, Landbay
The 3% Stamp Duty surcharge – one year later

This week marks a year since the government introduced its Stamp Duty surcharge of 3% on second homes – one...