Remortgaging From Family Building Society

Why People Remortgage From Family Building Society

There are several reasons borrowers choose to look beyond Family Building Society when their deal period ends:

• Higher SVR — as a smaller building society, Family Building Society's standard variable rate tends to be higher than those offered by larger lenders with greater competitive pressure to keep rates low
• Narrower product range — while their niche products are valuable for borrowers in specific circumstances, those whose situations have become more straightforward may find a wider and cheaper selection from mainstream lenders
• Changed family circumstances — if you originally used a family-assisted product such as a joint borrower sole proprietor mortgage, you may no longer need these features and could benefit from simpler, cheaper alternatives
• Later life reassessment — older borrowers who took out an interest-only mortgage with Family Building Society may want to explore whether retirement interest-only products from other lenders offer better terms
• Property value increases — rising house prices may have improved your loan-to-value ratio, qualifying you for better rates with mainstream lenders

Family Building Society fills genuine gaps in the market, but it is always worth reviewing whether you still need a specialist product when your deal comes up for renewal.

Family Building Society Rates and SVR

Family Building Society's standard variable rate typically sits around 7% to 7.75%, which is higher than the SVRs offered by most large building societies and high street banks. Their initial fixed rate products tend to carry a modest premium over mainstream equivalents, reflecting their smaller scale and specialist positioning.

For a borrower with a £180,000 mortgage, the difference between Family Building Society's SVR of around 7.50% and a competitive mainstream fix of 4.25% equates to approximately £340 per month in savings, or over £4,000 per year.

It is worth noting that Family Building Society's rates for specialist products, such as their later life mortgages or family-assisted schemes, should be compared against other specialist providers rather than mainstream fixed rates. A broker can ensure you are comparing like with like across the appropriate segment of the market.

How to Remortgage From Family Building Society

Switching from Family Building Society follows the standard remortgage process:

• Check your current position — review your outstanding balance, current rate, and any early repayment charges that may apply, all of which can be found on your latest statement or by contacting the society directly
• Assess your needs — consider whether you still require a specialist product, such as a joint borrower sole proprietor mortgage or an interest-only arrangement that runs into retirement, or whether a standard product would now be appropriate
• Get professional advice — speak to a whole-of-market broker who can search across mainstream, building society, and specialist lenders to find the most competitive deal for your current situation
• Submit your application — your broker will handle the application process with the new lender, who will arrange a valuation and carry out affordability checks
• Complete the switch — a solicitor or conveyancer manages the redemption of your Family Building Society mortgage and the legal transfer to your new lender

The process typically takes four to eight weeks from application to completion. Starting three to six months ahead of your deal ending is ideal.

Things to Check Before Switching From Family Building Society

Before committing to a remortgage from Family Building Society, consider these important points:

Specialist product features

If your mortgage includes specialist features such as a family member acting as guarantor or joint borrower, ensure that any new arrangement properly addresses these elements. You may need the guarantor to be released formally, or alternative security arrangements may be required.

Age-related lending criteria

If you are an older borrower, Family Building Society's willingness to lend into retirement may not be matched by all mainstream lenders. Ensure your new lender's age limits and retirement income assessment suit your circumstances before applying.

Interest-only provisions

If you hold an interest-only mortgage with Family Building Society, check that your new lender accepts your repayment strategy. Different lenders have different requirements for interest-only lending, particularly regarding the vehicle you plan to use to repay the capital.

Early repayment charges

Family Building Society's ERCs apply during the initial product period. Once you move to the SVR, these charges typically no longer apply, making it a cost-effective time to switch.

Membership benefits

As a building society member, you may have voting rights and may occasionally receive windfall payments. Leaving the society means surrendering these benefits, though they are unlikely to outweigh the savings from a cheaper mortgage.

Why a Broker Helps When Leaving Family Building Society

Family Building Society borrowers often have circumstances that require a more nuanced approach to mortgage selection, making professional broker advice particularly valuable.

If you originally chose Family Building Society because of a specialist requirement — such as needing a lender who would consider family support, accommodate older borrowers, or offer flexible income assessment — a broker can identify which mainstream or specialist lenders now cater to these needs at a better price.

The later life lending market has expanded considerably in recent years, with more lenders offering retirement interest-only mortgages and flexible age limits. A broker stays up to date with these developments and can quickly narrow down the options that suit your age, income, and retirement plans.

For borrowers whose needs have become more straightforward, a broker provides the reassurance that you are accessing the most competitive rate available. Their whole-of-market access ensures you are not limited to the small number of deals visible on comparison websites or through direct lender enquiries.