Mortgage question - First time buyer!
Discussion
Hi all,
Wondering if you could provide some input. I would classify myself as someone who understands the basic mortgage principals, however I've never taken one out. So looking for your input on a specific situation I am looking at.
My friends and I are looking to get into a property as a 3-way mortgage (basically we feel we have enough capital and we don't want to do renting anymore!). Our timelines are pretty much the same and none of us have commitments apart from work and family. We are all 29, and earn basic salaries of 52k, 55k, and 65k which for our location (London) I guess is middle of the road.
My first question is - Do lenders do 3-way mortgages with (let's say, a brother and best friend)? I've heard some lenders may not do this. We are happy to put in circa 20% deposit on a 600k (ish) property leaving us with 480kish to loan.
Could anyone give some useful insights into this practice? We are happy to consider a larger deposit if needed, or a smaller one (10, 15%) if it works out like that too.
Any input would be very useful!
Michael
Wondering if you could provide some input. I would classify myself as someone who understands the basic mortgage principals, however I've never taken one out. So looking for your input on a specific situation I am looking at.
My friends and I are looking to get into a property as a 3-way mortgage (basically we feel we have enough capital and we don't want to do renting anymore!). Our timelines are pretty much the same and none of us have commitments apart from work and family. We are all 29, and earn basic salaries of 52k, 55k, and 65k which for our location (London) I guess is middle of the road.
My first question is - Do lenders do 3-way mortgages with (let's say, a brother and best friend)? I've heard some lenders may not do this. We are happy to put in circa 20% deposit on a 600k (ish) property leaving us with 480kish to loan.
Could anyone give some useful insights into this practice? We are happy to consider a larger deposit if needed, or a smaller one (10, 15%) if it works out like that too.
Any input would be very useful!
Michael
It’ll probably be worth your while using a good independent mortgage broker. They’ll know which lenders can accommodate you and stop you wasting time and effort trawling through inappropriate ones.
It’s also not a great idea to end up with a lot of rejected applications on your credit record, which a good broker should be able to avoid.
It’s also not a great idea to end up with a lot of rejected applications on your credit record, which a good broker should be able to avoid.
Hiya 
Also, you may have already discussed this with your pals but if not, with three people going to be on the Title Register.
You're going to have to have a chat about how you're all going to hold the property. i.e,: Tenants in common with either equal or unequal shares dependant on how much you all sink in to it.
Again, apologies if already discussed.
Also, you may have already discussed this with your pals but if not, with three people going to be on the Title Register.
You're going to have to have a chat about how you're all going to hold the property. i.e,: Tenants in common with either equal or unequal shares dependant on how much you all sink in to it.
Again, apologies if already discussed.
MaybeOneDay said:
Hiya
Also, you may have already discussed this with your pals but if not, with three people going to be on the Title Register.
You're going to have to have a chat about how you're all going to hold the property. i.e,: Tenants in common with either equal or unequal shares dependant on how much you all sink in to it.
Again, apologies if already discussed.
All equal!Also, you may have already discussed this with your pals but if not, with three people going to be on the Title Register.
You're going to have to have a chat about how you're all going to hold the property. i.e,: Tenants in common with either equal or unequal shares dependant on how much you all sink in to it.
Again, apologies if already discussed.
Kent Border Kenny said:
It’ll probably be worth your while using a good independent mortgage broker. They’ll know which lenders can accommodate you and stop you wasting time and effort trawling through inappropriate ones.
It’s also not a great idea to end up with a lot of rejected applications on your credit record, which a good broker should be able to avoid.
Thanks for this - good to know! Can anyone recommend a good broker?It’s also not a great idea to end up with a lot of rejected applications on your credit record, which a good broker should be able to avoid.
The usual issue with these is to ask yourselves questions:
- What if one person lost their job and was unable to pay their share for a year?
- What if one person found a partner and wanted them to move in?
- What if that person then wanted to buy their own house and "cash out" their share to do so?
- What if one person (or two!) had a major falling out with another?
Etc..
- What if one person lost their job and was unable to pay their share for a year?
- What if one person found a partner and wanted them to move in?
- What if that person then wanted to buy their own house and "cash out" their share to do so?
- What if one person (or two!) had a major falling out with another?
Etc..
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