Mates Mortgage

crowdpleaser_2

Myself and three friends have been discussing buying a house together as it is the only way we can get on the property ladder. However, there does not appear to be a straight forward method to compare group mortgages, unlike standard mortgages. Could anyone offer any assistance and information reguarding group mortgages. Advice would particularly be welcome from people who have/had a group mortgage.

opinions4u

My understanding is that most lenders will use the highest two incomes when assessing affordability. Normal mortgage products should apply.

But you should think carefully about this.

What happens if you have a falling out once you own a property?
What happens if the highest earner (or any of you) finds a partner and wants to move out, selling their share?
What happens if you can't afford to buy their share?
What happens if one of you dies?
What happens if one of you damages the property in some way? Who pays for the repair?
What happens if one of you seems to find it difficult to pay his/her share of the bills, either through genuine hardship or just being tight?
What happens if prices drop by a further 15% after you've bought?

It's a nightmare scenario and I'd recommend renting as mates as a better option than buying.

herbiesjp

opinions4u wrote: »

My understanding is that most lenders will use the highest two incomes when assessing affordability. Normal mortgage products should apply.

But you should think carefully about this.

What happens if you have a falling out once you own a property?
What happens if the highest earner (or any of you) finds a partner and wants to move out, selling their share?
What happens if you can't afford to buy their share?
What happens if one of you dies?
What happens if one of you damages the property in some way? Who pays for the repair?
What happens if one of you seems to find it difficult to pay his/her share of the bills, either through genuine hardship or just being tight?
What happens if prices drop by a further 15% after you've bought?

It's a nightmare scenario and I'd recommend renting as mates as a better option than buying.

Some lenders will look at the four incomes - subject to criteria

All you other points are extremely valid

sdooley

What if one person just stops paying their part of the mortgage?

Two good friends is one thing, four going in together (which could easily become eight if you all get boy/girlfriends) seems too many?

Why buy a house for four now when you may be able to afford one each in a couple of years time?