First Time Buyers Mortgages
Mortgages with Friends and Family
What are Mortgages with Friends or
Family?
When buying
with friends or family members, you might take out a joint mortgage. This
mortgage allows four friends to buy together at up to three and a half times
each salary, as long as they are all graduates or professionals. It is
available at 90%
LTV
. Although up to four people can buy together on a
conventional mortgage, lenders usually only take the highest two incomes into
account.
Mortgages with Friends or Family -
Advantages
This way,
affordability is considerably increased.
You can
ensure that you are legally registered as tenants in common. This means that if
you die your share will go to an assigned beneficiary rather than direct to the
other property owners.
Mortgages with Friends or Family –
Disadvantages
You will be
in a joint ownership situation where all names feature on both the mortgage
agreement and property deeds. This means that each party is jointly and
severally liable for the entire loan.
Neither
party can sell without agreement from the others. Flexibility in terms of life
changes is very restricted – especially with the maximum number of buyers.
Mortgage Lenders Specialising in
Mortgages for Friends or Family
Britannia
Building
Society but not exclusively - check with a mortgage advisor for most recent mortgage offerings
Friends/Family Mortgage Advice
If you are
considering buying your first home with friends or family, seek specialist
no-commitment mortgage advice.
Features, advantages and disavantages of specific first time buyer mortgages:
100% Mortgages l Cashback Mortgages l High LTV Mortgages l Graduate Mortgages l Professional Mortgages l Mortgages with Parents l Family Offset Mortgages l Mortgages with Friends or Family l Mortgages at University l Rent a Room Mortgages l Affordable Mortgages l Interest only Mortgages l Part Repayment Part Interest Mortgages l Interest-free Start Mortgages l Shared Ownership Mortgages l Poor, Adverse or Poor Credit Mortgages l Key Worker Mortgages l Shared Equity Mortgages l 30, 35, 40 Year Term Mortgages