What is the Post office First start Mortgage?📩
The Post office first start mortgage is aimed primarily at those who don't earn enough to pass the affordability assessments of a lender. E.g you want to buy a £300,000 house, you have £15,000 saved(5%) and you will have to borrow £285,000 but you earn £25,000 per year which means you can only borrow up t0 4.5 of this amount which is £112,500.
In this case, the Post office First start Mortgage allows you to add a sponsor to your mortgage so their income can be included in the affordability assessment. Your sponsor must be a family or close relative.The Mortgage taken out is also a joint mortgage which your sponsor is included in. This means you are both jointly liable for the mortgage.
To be eligible for the Post office First Start Mortgage you will need to:
- Earn at last £20,000
- Have a 5% deposit
- Property price must not be over £500,000
- You cannot own any property at the time of completion.