Building societies could be the ones picking up the slack when the second phase of the government’s Help to Buy 2 Mortgage Guarantee scheme draws to an end in 2016.
The Family Building Society based in Epsom has recently opened its doors for the first time. The society, as its name suggests, aims to draw families together, and offers products that will help each generation help the others within a family unit.
With the housing market as it is, more and more people are becoming unable to move out of their parent’s house, despite working. A recent Shelter survey found that almost 2 million young adults are trapped living with their parents across the country.
The problem is that people either can’t get a large enough deposit saved or can’t secure a mortgage. The Family Building Society aims to address this potential market by helping family members help others financially, such as parents aiding their children, without risking their own savings.
The mortgages available are especially aimed at helping people and families who may be going through a turbulent time, or are trying to get onto the property ladder. Products like their Low Start Mortgage can be beneficial to people trying to get back on their feet. This is why enabling families, from grandparents to grandchildren, to help each other should work out so well.
At the moment, the Epsom based building society is operating on a very small scale, and only employs a reported 150 people. But if it is successful, who knows how far it could spread.
