Joint mortgage application

louleeboo

I'm a first time buyer and am applying for a joint mortgage with a friend of mine through HSBC. My friend banks with HSBC already, my bank account is with Natwest. The application is linked with my friends account. He earns more than I do so each of us will pay a fixed percentage of the mortgage (probably 60/40) and when we come to sell the house, the profits will be split that way also. All charges (E.g. stamp duty) will be split 50/50.

My questions are:

1) Should we open a joint account for mortgage purposes?
2) If we don't open a joint account and just use his instead, can this cause problems for either of us in the future? I would be setting up a standing order to pay my part of the mortgage into his account each month and he would be paying the bank.
3) Do we need to get anything in writing to confirm our agreement over who pays what percentage?

Thanks

stanmoresaver

louleeboo wrote:

I'm a first time buyer and am applying for a joint mortgage with a friend of mine through HSBC. My friend banks with HSBC already, my bank account is with Natwest. The application is linked with my friends account. He earns more than I do so each of us will pay a fixed percentage of the mortgage (probably 60/40) and when we come to sell the house, the profits will be split that way also. All charges (E.g. stamp duty) will be split 50/50.

My questions are:

1) Should we open a joint account for mortgage purposes?
2) If we don't open a joint account and just use his instead, can this cause problems for either of us in the future? I would be setting up a standing order to pay my part of the mortgage into his account each month and he would be paying the bank.
3) Do we need to get anything in writing to confirm our agreement over who pays what percentage?

Thanks

Other than a reply to question 1 which is yes, i would suggest these questions be asked of your legal advisers for this transaction.

Hope this helps.

SS