FTB - Post Office First Start - Is this a good product?

HardQs · 16 October 2018 at 11:45AM

Looking at this mortgage it seems a good idea whereby the FTB may have the deposit but may not have the salary in terms of affording the remaining value of the property, the affordability is then propped up by a family member taking their salary into account to cover and increase the amount required to borrow.

The guarantor family member doesn't need to be a named person on the title deed thus allowing me to primary name owner.

e.g. £300k Property Price
10-15% deposit
Annual salary £25000
Guarantor Salary - £50000
Post Office will allow me to borrow a maximum of £280k

Property prices in London obviously, outstrip the salary but I am wondering if this genuinely a good mortgage product or are there other alternatives similar to the Post Office First Start.

My salary is the problem and I am unable to take a mortgage as many mortgage calculators are only allowing me a maximum value of £150k.

Would appreciate the views and advice.
Thanks

takman · 16 October 2018 at 5:44PM

HardQs wrote: »

Looking at this mortgage it seems a good idea whereby the FTB may have the deposit but may not have the salary in terms of affording the remaining value of the property, the affordability is then propped up by a family member taking their salary into account to cover and increase the amount required to borrow.

The guarantor family member doesn't need to be a named person on the title deed thus allowing me to primary name owner.

e.g. £300k Property Price
10-15% deposit
Annual salary £25000
Guarantor Salary - £50000
Post Office will allow me to borrow a maximum of £280k

Property prices in London obviously, outstrip the salary but I am wondering if this genuinely a good mortgage product or are there other alternatives similar to the Post Office First Start.

My salary is the problem and I am unable to take a mortgage as many mortgage calculators are only allowing me a maximum value of £150k.

Would appreciate the views and advice.
Thanks

Well using your figures you would have monthly mortgage payments of over £1000 being paid from a wage of around £1700 a month take home. So your going to be on a pretty tight budget each month and will have to live quite frugally.

kingstreet · 16 October 2018 at 10:28PM

There are plenty of "joint borrower, sole proprietor" products on the market these days. They are what we used to call a guarantor mortgage where there were two borrowers, but only one owner.

FTB - Post Office First Start - Is this a good product?

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