Common sense underwriting and innovation from National Counties Group

National Counties Group

National Counties Building Society is committed to its status as a mutual organisation, working directly for its members’ interests. We have a long established reputation for the quality of our loan book and an individual approach to underwriting, handling each application on its merits and on a case by case basis.

For example, while some lenders simply rely on an application form ‘check box’ and credit score, we use a ‘common sense’ approach taking into account the applicant’s individual circumstances. In other words, we take the time and effort to see the bigger picture – about as far away as you can get from the ‘computer says no’ approach of other lenders!

The Family Building Society

The Family Building Society was launched in July 2014 to allow families to help each other financially through innovative, well-designed mortgages, savings and later and early life products.

The Family Building Society is focused on helping families tackle some of today’s most pressing financial problems. It was created to offer a wider set of financial solutions than a traditional building society. Often this means helping family members work together across the generations, sometimes pooling their financial resources to find the best answers.

What is the Family Mortgage?

We aim to make it easier for younger buyers to get on the property ladder. As most young adults have only a small deposit, this innovative mortgage allows family members to combine their finances for up to 10 years to reduce repayment costs.

With a minimum of 5 per cent deposit, this can be achieved in multiple ways:

  1. A Family Security account allows family members (parents, grandparents, or an uncle, for example) to provide security for the buyer’s mortgage by depositing savings with the society.
  2. Another option allows family members to offer a charge over their property as security to the society.
  3. Finally, family members can deposit savings in a Family Offset account. The buyer only pays interest on the loan minus the savings deposited. The savings are still owned by the family member and the amount in the offset account provides security for the mortgage. This reduces the interest rate that might otherwise be available.

What does 2015 and beyond hold for National Counties Group and intermediaries?

We will continue to provide support and training in all aspects of the NCBS and FBS suite of mortgage products as we develop innovative products for the mortgage market.

For example, the Family Building Society recently launched the Offset Mortgage which is aimed at people wanting to make better use of their savings whilst keeping their money available for other purposes, such as the savings required by the self employed for their twice yearly tax bills.

In recognition of the value we place on our intermediary partners and the work they do on our behalf, we have recently increased the proc fees for our Family Mortgage to 0.55 per cent with the Family Offset Mortgage proc fee now 0.50 per cent.