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Family Boost fixed savings account
This account lets you use your savings to help a family member who doesn't have a deposit to buy their first home. There's no access to your savings for three years.
Who this account is for
- Savers who want to help a family member buy their first home through the Family Boost mortgage scheme.
- You must be happy for your savings to be held as security against the mortgage for three years.
- To apply, you need to be 18 or over and live in England or Wales. Either you or the mortgage applicant must have a Reward Current Account or Ultimate Reward Current Account.
The benefits
- Your family member will be able to buy their first home without a deposit. Instead, your savings will be held as security against the mortgage for three years.
- Get paid interest at a fixed rate each year. You'll also get your savings back at the end of the three year term if all the mortgage repayments have been paid. If not, see the summary box.
- You should take independent legal advice. To help you pay for this, we'll give you £300 cashback when the mortgage completes.
How it works
- You'll deposit 10% of the agreed property purchase price into an Everyday Saver. This will change to a Family Boost fixed savings account before the purchase completes.
- We can take money from the savings to cover any missed mortgage repayments. So you may get back less than deposited.
- After three years we’ll change the account to an Instant Saver. You'll then able to access your savings as long as all the mortgage repayments have been paid. If not, see the summary box
Summary box for the Family Boost fixed savings account
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3.50% AER/gross for any balances over £1.
- The interest rate is fixed, which means it won't change during the three year term.
- Your interest is paid each year. This will be on the date the account changed from an Everyday Saver to a Family Boost fixed savings account.
- We’ll pay your interest into your account, or you can ask us to pay it to another account you have.
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No. This account has a fixed rate of interest so the rate won’t change during the three year term.
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For example, if you deposit £20,000.00 when you open the account, the balance after 36 months will be £22,174.35.
This assumes the Family Boost mortgage has been kept up to date. We haven’t needed to take out money to cover any missed payments. And your interest is paid into this account.
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You can only apply over the phone.
You can apply for this account if:
- it is being opened as part of the Family Boost mortgage scheme
- you agree the balance, except for interest, can be held as security against the Family Boost mortgage
- you accept you will not be able to access the savings until the charge is released
- you’re 18 or over, resident in England or Wales, and you aren’t a named applicant on the mortgage
- either you or the mortgage applicant have a Reward or Ultimate Reward current account.
If you want to open it as a joint account, you both must live at the same address or have the same surname.
When you apply, we will open an Everyday Saver account for you first. You'll need to pay your deposit into this account. The deposit must be 10% of the agreed property purchase price and can't be more than £50,000. We need to receive this at least seven working days before the property purchase completes (not including Saturdays, Sundays or English bank holidays). Before the house purchase completes we’ll change your account to a Family Boost fixed savings account. The three year term starts on the day the account is changed to a Family Boost fixed savings account.
You can manage the account online.
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No. You can’t take out any money during the term or close the account early.
The money is held as security against the Family Boost mortgage. This means we can withdraw from the account to pay off arrears on the mortgage if the mortgage repayments have not been kept up to date. If we do this you may get back less than you deposited.
After three years we’ll change the account to an Instant Saver. Before this happens, we'll contact you to explain your options and next steps. If the mortgage had been kept up to date then you will then be able to access your savings. But if the mortgage has not been kept up to date, the legal charge may continue after the three year term with the Instant Saver.
You will be able to access your money once the arrears have been cleared and the mortgage is up to date.
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