The launch of payment waiver with the first UK building society is set to shake-up the mortgage market – providing a pioneering new mortgage feature that will provide peace of mind and protection to borrowers across the UK.
The newly formed Family Building Society, geared to helping parents and grandparents support the younger generation to get their foot on the property ladder, has embraced payment waiver because if offers unique protection for young home owners where repayments are met for up to six months if they lose their job through no fault of their own.
Mark Bogard, CEO of the Family Building society said added security was important to the customers they spoke to – especially for first time buyers and so payment waiver was introduced in response to that need.
With recent calls from Andy Love, a leading member of the Treasury Select Committee, urging the government to take immediate steps to tackle the protection gap which currently affects 42 per cent of UK residents – payment waiver is a simple and straightforward solution addressing the issue.
Adoption by a mainstream provider like the Family Building Society is a huge step forward and a sure sign that the industry is changing to better protect borrowers and provide transparent financial security which comes at no extra cost to the borrower.
Over the past three years, Cuna Mutual has developed Payment Waiver for the UK market – first being launched with major Credit Unions.
Payment waiver is already widely adopted in the US by big lenders like the Navy Federal Credit Union which provides $35billion in loans – and the UK is set to follow suit.
It is important to us that borrowers are not left in a vulnerable position and payment waiver is an assurance that they are protected when they need it most.