Mortgage provider boosting lending power

arse_neck

Hi there all. My brother-in-law has had an offer accepted on a property, and was going to join forces with a friend to cover a mortgage he can't manage on his own. But friend is having second thoughts, leaving him in limbo. At a guess, I'd say he's probably about £30-£40k short.

He's now wondering if it's ever possible that a lender would take on some of a mortgage as an investment.

I like to think I'm fairly finance-savvy, but I've never heard of anything like this, and find it difficult to believe that any mortgage provider would get involved. Yet he's adamant he read somewhere that this is the case.

Does it ring any bells with anyone?

Thanks in advance,

!!!!!!_neck

Ian_W

Nope, never heard of that myself. Only thing that comes close is "shared ownership" schemes which are offered by some developers on new builds or by the government to key workers AFAIK.
He could always contact a broker, some lenders will stretch affordability more than others but TBH he should be confident he can keep up the repayments otherwise rethink the type/price of property he can go for on his own.
HTH.

TangentMan

There are mortgage types called "Shared Appreciation" where the lender will take percentage of the increase in cost of the house over the term of the mortgage. This might be what your brother-in-law is thinking of.

I am not sure if any of the mainstream lenders still offer these, and i think they became diffiicult to sell under the FSA mortgage regulations.

But a broker should know about them and where to look.