Can my money be withdrawn from the savings account?
During the first 4 years of the Family Assist Mortgage there is a legal charge held by us over the savings, during which time you will be unable to access or make withdrawals even in an emergency. Please ensure that you take this into consideration before agreeing to link your savings to a Family Assist Mortgage. Your independent legal adviser will explain this further to you.
 
What happens after 4 years?
Providing that the mortgage payments have been satisfactorily maintained over the period we will relinquish the charge over the savings and they will be available for you to withdraw.
 
Can my savings, or part of them, be lost?
We will not use your savings to make up any mortgage arrears; however your savings are at risk in the event of repossession. If the property is repossessed and sold, and there is a shortfall between the sale price and the mortgage amount outstanding, then the savings may be used to repay the amount outstanding.
 
What happens if the borrower experiences difficulties in paying their mortgage?
If the mortgage account has arrears or has recently experienced arrears then the legal charge over the linked savings account will not be released after the initial 4 years. Instead it will be retained until the borrower has been up to date with payments for at least six months following the fourth anniversary.
 
Will I receive interest on my savings?
No interest will be paid on savings whilst they are linked to a Family Assist Mortgage. Instead your savings are offset against the balance of the loan, reducing the interest charged on it.
 
Can the savings be deposited in joint names?
Yes, joint helpers can deposit money in joint names.
 
Am I a guarantor on this mortgage?
No, a guarantor would be responsible for the full mortgage balance were the borrower unable to repay it whereas with the Family Assist Mortgage your potential liability is limited to the amount held within the savings account secured by a legal charge.
 
Do I have any rights over the property?
No the mortgage and the property are held in the borrower’s name only.
 
Can I add more money to the savings account linked to the mortgage?
You cannot deposit further funds into the savings account that is subject to the legal charge; however you can open another linked savings account and deposit money in it which will benefit the borrower by reducing their interest further. This second account would not be subject to a legal charge so funds could be withdrawn and added to it as required.
 
What happens if I die?
The savings will remain charged to the Society and linked to the Family Assist Mortgage until the conditions for releasing the charge have been satisfied. This will be explained to you further by your independent legal adviser.
 
Why do I need to take independent legal advice?
It is a condition of the mortgage that you take independent legal advice to ensure that you understand the commitment you are making and the risks involved before giving us a legal charge over your savings. To avoid a conflict of interest, you cannot use the same solicitor who is conducting the conveyancing on the linked mortgage but it can be another solicitor from the same firm.

For more information about our Family Assist mortgage click here.

Vernon Building Society
19 St Petersgate
Stockport
SK1 1HF

Tel: 0161 429 6262
Email: info@thevernon.co.uk

Telephone calls are recorded and may be monitored for regulatory and training purposes to help maintain service quality.

*The 'AER' stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Vernon Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (registration number 195475).  You can check this on the Financial Services Register. We are also a participant of the Financial Services Compensation Scheme (FSCS). Details of the scheme can be obtained from www.fscs.org.uk

Telephone calls are recorded and may be monitored for regulatory and training purposes to help maintain service quality.

For independent information about financial products and services visit  www.moneyadviceservice.org.uk

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