A new challenger bank on the block
Newcomer Family Building Society has launched to help families financially support each other whilst mitigating potential risks
Newcomer Family Building Society has launched to help families financially support each other whilst mitigating potential risks.
Part of the National Counties Building Society, but running as its own bank, the Family Building Society looks to help families across all generations.
One example scenario being assisting parents and grandparents who are helping children onto the housing ladder but want to avoid sacrificing all their savings or place themselves in a risky position.
Chief Executive Mark Bogard said: “This is an entirely new, focused and joined up development in financial services that is designed to meet the changed financial landscape and a dependency on each other, for the family.
“Unlike the big banks, we don’t want to be all things to all people. We just want to serve families with particular needs, really well.
“The Family Building Society is a modern society with traditional values. We are living longer and need to provide for old age care. Parents want to support their children into independence but have their own needs to consider. Young people want independence but often have student debt and find it hard to save for a deposit. Also they don’t want to be a further burden on their parents.”
The firm offers products such as:
- An interest paying savings account where the sum deposited provides security for the mortgage so that borrower pays lower rates.
- An offsetting arrangement where the family member foregoes interest on savings so that the mortgage holder pays a lower overall rate of interest and no interest on the offset amount.
- A charge on a parent or other family members’ house to help reduce the need for a larger deposit.
- Also, a protection feature that is built in so that if the mortgage holder loses his or her job through no fault of their own, their share of the mortgage will be paid for up to six months.
Within seven hours of launching, Family Building Society had already received over 8000 hits on its website as well as high amounts of Twitter responses and features in a range of national publications.
Keith Barber, Associate Director of Business Development commented: “What we aim to be is the go to place for family financial services. We want to be better than the existing banks to help families.”
Keywords: Challenger, bank, Family Building Society, bridging, commercial, finance, market, loans, risks, families, generations, housing ladder
Source: Bridging & Commercial — https://bridgingandcommercial.co.uk/a-new-challenger-bank-on-the-block