Post Office Family Link. I struggled to save for a deposit, but thanks to mum and dad it wasn t a problem. Brilliant.

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1 I struggled to save for a deposit, but thanks to mum and dad it wasn t a problem. Brilliant. Post Office Family Link Finally something for your first time buyers to smile about.

2 Supporting materials To help explain how Post Office Family Link works, we ve created a range of supporting materials and communications for you. You ll find links to the online tools and can view and download supporting communications at postoffice4intermediaries.co.uk/familylink This includes: Affordability calculator Videos Market overview Application guides. What you need to know Ownership and legal advice With Post Office Family Link the assistor will not own, or have any claim, on the first time buyer(s) home. Equally, the first time buyer(s) will not own the assistor s home. As the assistor does not have any claim on the first time buyer(s) there are no additional stamp duty costs. The assistor and first time buyer(s) will need to use the same conveyancing solicitor for both mortgages. This is to ensure the mortgages complete simultaneously and the deposit from the assistor mortgage can be used to complete the first time buyer purchase. The assistor must take independent legal advice before completion. We highly recommend the first time buyer(s) also takes independent legal advice before deciding Post Office Family Link is right for them. The solicitor giving independent legal advice cannot be involved in the purchase of the and they must have equal standing to the solicitor overseeing the conveyancing work. What is the assistor liable for if the first time buyer defaults? If the first time buyer(s) default, for any reason, the assistor will be responsible for the mortgage on their assistor home only. As part of the conditions of Post Office Family Link, the assistor will have joint and individual liability for the mortgage on their home and would be subject to the mortgage conditions regarding repayment. As Post Office Family Link is made up of two mortgages, we ll pay a 0.5% proc fee for both. INTERMEDIARY USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

3 How it works Assessing affordability Post Office Family Link is made up of two mortgages and the first time buyer(s) will be liable for both. So we ll be assessing their ability to pay both loans. Even though we won t be expecting the assistor to pay back the mortgage secured against their home, we will assess their affordability should anything happen to the first time buyer(s). Both the assistor and the first time buyer(s) will be credit scored and assessed for affordability. Post Office Family Link is designed for the first time buyer to pay both mortgages, however Post Office Family Link offers the flexibility for the assistor to make the payments on the 10% loan from their own account, allowing them to have control of their finances. Take a look at our examples below and see how your first time buyer(s) could get moving today. High value Mid value Lower value The benefits For your first time buyers Allows them the opportunity to get on the ladder if they haven t saved a deposit Perfect for those with parents or close relatives who are keen to help financially, but can t or don t want to gift a cash deposit After five years, they will have paid off the assistor loan at 0% interest. Plus, five years worth of the loan repayments, so they could be in a stronger position if they choose to remortgage. For the assistor It allows them to help their child or close relative buy their first home They can help out without having to dip into their savings. They just need their own home to be mortgage free. FTB purchase price FTBs (applicant(s) ) income Assistors income Monthly repayments 400,000 81,000 43,000 and 38,000 86,000 60,000 and 26,000 2,600 1,933 first time 667 assistor loan 290,000 58,500 27,500 and 31,000 34,000 22,000 and 12,000 1,884 1,401 first time 483 assistor loan 150,000 31,000 single income 33,000 23,000 and 10, first time 250 assistor loan For you Helps you get more first time buyers onto the ladder and submit more business The opportunity to build deeper client relationships Increased loyalty from your clients Potential for referrals from happy first time buyers. These examples show how Post Office Family Link works. Each customer s circumstances will determine how much they can borrow and their monthly repayments. In the above examples, the first time buyer mortgage is based on a 30 year loan on a 5% interest rate. The assistor loan is a five year loan at 0%. The first time buyer(s) is an individual or individuals who has never previously owned a residential and will occupy the as their main residence. The assistor is a close relative normally a parent, step parent, brother, sister, step brother, or step sister of any applicant.

4 No deposit. No problem. Post Office Family Link TM is designed for first time buyer(s) who haven t saved a deposit but have good affordability. So how does Post Office Family Link TM work? 90% 10% It s made up of two loans 1. First time The first time buyer takes a 90% LTV mortgage against the they re buying. Then, with a parent or close relative (their assistor) they take out a mortgage for the remaining 10%, secured against the assistors mortgage free home. This is interest free and must be repaid over five years. For example On a first time buyer home worth 200,000 with a 90% LTV mortgage of 180,000. Today A 10% mortgage of 5 years later 20,000 is secured against the assistor s. 2. Assistor loan After five years of payments your first time buyer(s) will have paid off the 10% assistor loan, and reduced the balance on their 90% loan. And, as long as house prices don t fall they ll have reduced the size of the loan compared to the value of their home.

5 At last, a place to call my own. Criteria Both properties must be based in the same legal jurisdiction. First time buyer Minimum age 18 Minimum income 20,000 Maximum of 2 applicants Maximum loan size 500,000 Has never owned a residential Purchase only Will occupy the purchase as their main residence Repayment only 90% LTV 5 year fixed rate mortgage only. Find out more The assistor Max age 75 at end of term Minimum income 20,000 Minimum value 150,000 Must be mortgage free (unencumbered) Is a close relative normally a parent, step parent, brother, sister, step brother, or step sister of any applicant The loan must be 10% of the value of the first time buyer s home 5 year repayment mortgage with a 0% fixed rate The loan must be repaid in full over 5 years. Head to postoffice4intermediaries.co.uk/familylink Or call our intermediary enquiry line on * Together, we make it happen. *We re available 8.30am to 6pm Monday to Friday. Calls maybe recorded for training and monitoring purposes. Calls cost no more than calls to geographic numbers (01 or 02). Calls from landlines and mobiles are included in free call packages. Post Office Money Mortgages are provided by Bank of Ireland (UK) plc. Bank of Ireland UK is a trading name 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. Registered in England & Wales. Registered Number: Registered Office: Bow Bells House, 1 Bread Street, London, EC4M 9BE. Post Office Money and the Post Office Money logo are registered trademarks of Post Office Limited. Registered office: Finsbury Dials, 20 Finsbury Street, London EC2Y 9AQ E0713 BIM MA