No Deposit mortgage from the Post Office
So, you’re looking for a mortgage but have no deposit. Is there any chance of that happening; well maybe.
Post Office have a rather special mortgage. The so called “Family Link Mortgage”. If you’re a first time buyer and think you can afford the monthly repayments on a mortgage but are struggling to save for a deposit. This could be an answer for you.
If you’re a parent who’s keen to help your children, and you own your property but perhaps you don’t have a large cash sum available. This could be the answer for you.
Here’s an idea how the “Family Link Mortgage from Post Office works in simple terms. Obviously, you’ll want to seek professional advice before committing to anything so please look at the regulated sections of our website.
How it works
There 2 mortgages. Mortgage 1 is arranged on the new property being purchased. This is known as the new property mortgage. Mortgage 2 is set up on what’s known as the assistors home. This is likely to be a parent’s home. They call this the Assistor Mortgage.
The new property mortgage is usually set up to 90% of the value being purchased. The assistor mortgage is set up for 10% of the value of the purchase property. Total therefore 100%.
In the first 5 years of your mortgage it’s necessary to pay two amounts. One amount being payment for mortgage 1 and the second amount in respect to mortgage 2. After 5 years only one payment is made for the total mortgage. There’s quite a bit more to this mortgage than can be discussed in this article, you really need to speak with a mortgage adviser.
However, it’s good to know that if you can afford the repayments on a mortgage. Have parents willing to help. But, don’t have a deposit of your own. All isn’t lost.