The Family Building Society has reduced the interest rates on its three and five-year fixed rate Family Mortgage.

The new three-year fixed rate is 3.14% until 30th September 2018, down from 3.29%, while the five-year fixed rate is 3.44% until 30th September 2020, down from 3.79%.

The product fee for both deals remains at £545.

The procuration fee for introducing intermediaries has been increased recently to 0.55% (previously 0.45%).

Cammy Amaira, head of intermediary sales at Family Building Society, said: “We continue to keep our mortgage offering competitive and the cut in our rates proves this point.

“The feedback that we have received from intermediaries and borrowers has been very positive. The Family Mortgage was designed specifically to allow family members to help first time buyers by providing security and offsetting facilities.

“As home ownership becomes an ever more distant dream for younger borrowers, that fact that we can offer loans up to 95% of a property’s value is very significant and, with the benefit of offsetting, you won’t get a lower monthly payment anywhere on a 95% loan.”