What happens to my Family Finance Plan if I am approved for the Family Loan?

Question

Accepted Answer

If you choose to switch to the Family Loan, your existing Family Finance Plan will be consolidated into one simple loan. This means:

Your current balance will be cleared using part of your new Family Loan.

You’ll receive the remaining amount as a lump sum, and you can use it right away.

You’ll repay the loan in a straightforward way through your Child Benefit, just like before.

Please note, we’re not offering the Family Finance Loan this year. So, switching means you can take advantage of a simpler, more affordable borrowing option.

Here is an example of what would happen if you held a balance in your current FFP account:

You apply for a Family Loan for this amount:	Your outstanding FFP balance is this amount:	You would receive this amount:
£1000	£500	£500
£750	£500	£250
£500	£500	£0