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POST OFFICE FAMILY LINK™ MORTGAGE

No big deposit? No big deal

A way for your parents to fund your deposit by using the value of their home.

Post Office Money® mortgages are provided by Bank of Ireland UK

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Is Post Office Family Link™ right for you?

  • If you are a first time buyer who could afford the monthly repayments, but are struggling to save for a deposit
  • If you are a parent who owns their property outright and is keen to help your children get on the ladder sooner, but don't have a large cash sum available

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE


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How does it work?

Mortgage one (New property)

Please read this in conjunction with the important information below.

We lend you 90% of the value needed to buy your new home.

Only the first time buyer is named on this mortgage.

Mortgage two (Assistor's property)

We then lend the remaining 10% deposit as a mortgage secured against your assistor's home. This property must be mortgage free.

Both you and your assistor are named on this mortgage but you will not be added to the deeds of your assistor's property.

First 5 years

You will make 2 separate repayments.

One repayment towards your assistor’s mortgage which is interest free.

One repayment towards your own mortgage which is subject to interest.

Remaining mortgage term

You make one monthly repayment towards your mortgage.

We can help you decide the length of time you need to fully pay off this mortgage. However, it must be by the age of 75.

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Let us show you an example

This example is representative based on an applicant with no debts or commitments. An affordability assessment will determine how much you can borrow.

1

For example, if the property you want to buy is worth

£200,000

2

A mortgage of £20,000 is taken against your assistor's property. This becomes your 10% deposit.

3

We could then lend you

£180,000

to cover the remaining value of your new home

4

You’ll have to pay £20,000 back at 0% interest rate within the first 5 years + the remaining £180,000 plus interest payable over a term which suits you

Your assistor's property

£20,000 paid over 5 years

£20,000 paid over 5 Years

Your property

£180,000 paid over a term that suits you, up to 35 Years

£180,000 paid over 35 Years

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Important information

Buyer's Basic Criteria

  • Your assistor must be a close relative (parents and step-parents, brothers and sisters and step-brothers and step-sisters)
  • You must be a first time buyer in order to apply (for joint applications, this applies to both buyers)
  • You will be assessed on your ability to meet the repayments for both mortgages. Your minimum assessable income needs to be at least £20,000
  • The maximum loan is £500,000
  • Both you and your assistor's properties must be in the same legal jurisdiction (i.e. England and Wales, Scotland or Northern Ireland)

Buyer's Considerations

  • Both homes could be at risk if you fall behind on your payments
  • Your repayments may be higher for the first five years, until you have paid off the assistors mortgage
  • Independent legal advice is recommended
  • Both you and your assistor are required to use the same conveyancing solicitor

Assistor's Basic Criteria

  • You must be a close relative of the buyer (parents and step-parents, brothers and sisters and step-brothers and step-sisters)
  • You are required to take independent legal advice before completion
  • The minimum property value must be in excess of £150,000, be mortgage free (unencumbered) and owned for at least 6 months
  • Your minimum assessable income needs to be at least £20,000

Assistor's Considerations

  • If payments on the mortgage secured against your property are not made, your home is at risk.
  • You may leave the mortgage early, but would need to pay off the outstanding balance

Our Family Link Mortgages

After the initial rate period, all of our mortgages revert to the Bank of England Base Rate (currently 0.75%) plus 3.99% for the rest of the term.

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Post Office Family Link™ Primary and Assistor Products

Remember to compare our Post Office Family Link ™ Primary Products together with the Assistor Product

5 year fixed (Primary Product)

until 31/01/2024 with additional benefits and cashback-90% Loan to Value

Product fee
£0
Initial rate
4.69%
Overall cost for comparison
4.8% APRC

Early repayment details

If you fully repay your mortgage before the end of your agreed term, you will pay:

  • 4% of the sum repaid until 31/01/2021
  • 3% of the sum repaid until 31/01/2023
  • 2% of the sum repaid until 31/01/2024

Overpayment details

You can overpay up to 10% of your outstanding mortgage balance each year without incurring any charges.

Followed By Rate

Bank of England Base Rate (currently 0.75%) plus 3.99% for the rest of the term.

Notes and additional benefits

  • £500 cashback paid to solicitor with advance
  • Standard valuation fee paid by Lender
  • Maximum Loan £500,000

Still unsure? Call us

0800 707 6206
  • 8.30am - 7.30pm Monday - Friday
  • 9am - 1.30pm Saturday
  • Closed on Sundays

5 year fixed (Primary Product)

until 31/01/2024 With additional benefits and cashback- 90% Loan to Value

Product fee
£0
Initial rate
4.79%
Overall cost for comparison
4.9% APRC

Early repayment details

If you fully repay your mortgage before the end of your agreed term, you will pay:

  • 4% of the sum repaid until 31/01/2021
  • 3% of the sum repaid until 31/01/2023
  • 2% of the sum repaid until 31/01/2024

Overpayment details

You can overpay up to 10% of your outstanding mortgage balance each year without incurring any charges.

Followed By Rate

Bank of England Base Rate (currently 0.75%) plus 3.99% for the rest of the term.

Notes and additional benefits

  • £750 cashback paid to solicitor with advance
  • Standard valuation fee paid by Lender
  • Maximum Loan £500,000

Still unsure? Call us

0800 707 6206
  • 8.30am - 7.30pm Monday - Friday
  • 9am - 1.30pm Saturday
  • Closed on Sundays

5 year fixed (Assistor Product)

For the entire mortgage term with additional benefits and cashback-10% Loan to Value

Product fee
£0
Initial rate
0.00%
Overall cost for comparison
0.5% APRC

Early repayment details

  • There are no early repayment charges on this loan

Overpayment details

No restrictions on overpayment.

Notes and additional benefits

  • Rate calculated using 0.0% interest and all product fees and is fixed for the entire term
  • £750 cashback paid to solicitor with advance
  • Standard valuation fee paid by Lender
  • Minimum Loan £2,778
  • Maximum Loan £55,555

Still unsure? Call us

0800 707 6206
  • 8.30am - 7.30pm Monday - Friday
  • 9am - 1.30pm Saturday
  • Closed on Sundays
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Representative example:

This is not based on your details, it just an example to show how repayments might work for this kind of mortgage.

A mortgage of £121,500 payable over 30 years initially on a fixed rate for 5 years at 4.69% and then reverting to our tracker rate of 3.99% above Bank of England Base Rate for the remaining 25 years would require 60 monthly payments of £629 and 300 monthly payments of £633.

The total amount payable would be £227,758 made up of the loan amount plus interest (£106,048), product fee (£0), valuation fee (£0), funds transfer fee (£15), legal fee (£0) and lending fee (£195).

The overall cost for comparison is 4.8% APRC representative.

Or in other words...

If you have a mortgage of £121,500 over 30 years

You will start paying a fixed rate of 4.69% for 5 years

You then pay a rate of 4.74% for the remaining 25 years

...and after 25 years, you will have paid £227,758

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Compare Post Office Family Link™ with other products

Post Office Family Link™

  • A way for your parents to help fund your deposit without using their savings
  • Involves two fixed rate mortgages, one to cover your deposit and one to cover the remaining property value

First Start Mortgage

  • Boosts your borrowing power enabling you to get the home you really want
  • Uses a family member’s income as well your own to assess your affordability

Traditional Mortgage

  • Assessment focuses solely on your income and ability to fund a deposit
  • There is a choice between fixed rate and tracker mortgages
  • A minimum 5% deposit would be required in order to be considered
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With you each step of the way

We want to make sure this is the right mortgage for you, so we have made this an advised product. This means we will give you free professional advice before you apply and throughout the process.

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Post Office Family Link™ FAQs

Am I eligible?

You must be a first time buyer, 18 years or older and buying a home in the UK, the maximum loan you can take out is £500,000. Your household income should be at least £20,000.

Your assistor, normally a close relative such as a parent should have no outstanding mortgage on their property and have a household income of at least £20,000. They can't be older than 75 at the expiry of the assistor mortgage term (5 years).

What fees will I need to pay?

Standard fees will apply such as legal fees and valuation fees, unless covered as part of any product incentive.

The assistor will be required to take Independent Legal Advice (ILA) for which a solicitor will make a charge.

There are no product arrangement fees on either the first time buyer or assistor Mortgage.

Products may be available that cover some of the associated costs i.e. fees assisted product features (i.e. free standard valuation, cashback to cover the cost of the ILA).

Do I need to get a valuation on my parents' home as well?

Yes, these are two mortgage transactions so there will need to be a valuation on each of the two properties involved which the lender will organise. There may be products available where the valuation is paid for by the lender.

Does my parent(s) need to be present for any meetings?

Yes, the assistor mortgage will need to have both the first time buyers and the assistors as party to the mortgage; so they will need to go through the mortgage application process.

Do my parents own part of my house?

No, the first time buyer house is owned by the first time buyers (only the first time buyers are on this mortgage, not the assistors). You will also not own any part of their home but you will be liable for making the payments on the mortgage you have secured against it

Does it need to be my parent(s) or can it be my Aunt?

It doesn't necessarily have to be a parent but unfortunately not an aunt. It can be:
Parents and step-parents, brothers and sisters and step-brothers and step-sisters; and the spouse or civil partner of any such person.

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Definitions

Approval in Principle (AIP)

An AIP indicates how much you could borrow based on the information you have provided, it performs various criteria and credit reference agency checks, and gives a conditional decision to lend based on its findings.

APRC

Annual Percentage Rate of Charge - this shows the overall cost of borrowing, taking into account the term, interest rate and other costs.

Higher Lending Charge

A fee which may be charged if the amount borrowed is more than a given percentage of the value of the property. The lender will use the fee for an insurance policy to protect them against financial loss in the event of a borrower not meeting their mortgage payments. The fee is usually payable in full up front. You may be liable for any mortgage shortfall debt if after possession the sale proceeds are not enough to repay your outstanding debt. Choose a Post Office Money mortgage and the Higher Lending Charge is paid by the lender for mortgages above 75% LTV. No Higher Lending Charge is payable for mortgages up to 75% LTV. See the Lending Criteria for more information.

Loan to Value (LTV)

It’s the amount of mortgage expressed as a percentage of the value of the property or purchase price, whichever is lower. For example, a mortgage of £80,000 on a purchase price of £100,000 would be 80% LTV. If the valuation of the property is lower than the price you've agreed, the LTV will be based on the valuation.

No product fee

There is no product fee to pay. This is ideal if you do not want to pay a product fee or add one to your mortgage.

Overall cost for comparison

The total cost of a loan, including interest charges and product fees, shown as a percentage rate. The calculation assumes that you keep the mortgage for the full term. APRC is the industry standard calculation and allows you to directly compare mortgages from all lenders.

Product fee / Standard legal fees

Product fee: This is a fee charged on some mortgages as part of the product. It can be paid upfront or added to the loan. If you add it to your mortgage it will increase your outstanding balance and interest will be charged for the duration of the mortgage.

Standard legal fees: If your mortgage states that standard legal fees are paid by the lender, the lender will pay the fees if you use their nominated solicitors. Terms and conditions apply, additional legal work may incur additional fees, please refer to the General Lending Criteria for full details.

Standard legal fees

If your mortgage states that standard legal fees are paid by the lender, the lender will pay the fees if you use their nominated solicitors. Terms and conditions apply, additional legal work may incur additional fees, please refer to the General Lending Criteria for full details.

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Contact us or apply

Apply online with advice

We will give you a quick call first to talk through your application

Arrange a call back

Select a time that suits you and we'll give you a call back

Call us on

0800 707 6206
We are available 8.30am - 7.30pm Mon - Fri and 9.00am - 1.30pm Sat
Closed on Sundays

Small print

 

Subject to status and lending criteria. Written illustrations available upon request. Borrowers must be aged 18 or over.

 

Post Office Money® Mortgages are provided by Bank of Ireland (UK) plc. Post Office Limited is an appointed representative of Bank of Ireland (UK) plc which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Post Office Limited is registered in England and Wales. Registered Number: 2154540. Registered Office: Finsbury Dials, 20 Finsbury Street, London, EC2Y 9AQ. Post Office Money® and the Post Office Money® logo are registered trademarks of Post Office Limited. Our FCA Register Number is 409080. You can confirm our registration on the FCA's website (www.fca.org.uk) or by contacting the FCA on 0800 111 6768.