The Post Office Family Link Mortgage (Guide)

What is the Post Office Family Link Mortgage?

The post office family link Mortgage is essentially a way for your family to fund your mortgage deposit by using the value of their home.

The post office family mortgage is geared towards borrowers who have parents who own their properties outright and borrowers who can afford to make their monthly repayments on a mortgage but are struggling to save a mortgage deposit.

The Post office family mortgage works by giving you a 100% mortgage. 90% on the property you want to buy and 10% of your parent or family members property. The mortgage on your family members property is interest free and must be repaid within 5 years. During the first 5 years you will make repayments on both mortgages. You will then continue to pay off the mortgage on your property.

To be eligible for the Post Office Family Link Mortgage;

  • You must be a first time buyer
  • You must have accessible income of at least £20,000
  • The maximum property price is £500,000
  • You and your family members property must be in the UK.

Both homes can be repossessed if you fail to keep up your monthly mortgage repayments and you should seek independent financial advice.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.