Joint bank accounts required????

bunglesabout

Hi
I was wondering if anyone can give me some advice on getting a joint mortgage?
Later this year I am hoping to buy a property with my partner, and possibly my mother.
This would require a joint or threeway mortgage and I have no idea what, if any, differences there would be between this and the single mortgage I currently have.
One of my questions would be about how it would be paid for. For instance would we all have to get a joint account and pay the mortgage from this or could the funds come out of one account holder's account?
The property I have now was the first one I have ever bought, so I am still relatively new to house buying and selling. Therefore I would be grateful if anyone who has ever had experience with a joint, or especially a three-way mortgage could give me some advice, or just advise me or the pitfalls of this arrangement.

Regards

Bungle

silvercar

I have never had a joint bank account with OH, even though we have bought properties and other joint finances. If you all trust each other you can have the mortgage come out of one persons account and the others make a standing order into that account from their accounts.

G_M

It is entirely up to you. The lender will not care where the money comes from, as long as it comes each month. It does not matter which of you pays, or from what account. The only problem will arise if the monthly payments are not made.

bunglesabout

Thanks for the advice. Does anyone know any major legal problems that can arise from a three-way mortgage?
I'm not expecting any issues, but would like to be prepared for a worse case scenario.

Thanks

Bungle

roger196

Each of you are liable for the full amount of the debt if the others do not pay. You will be financially linked on your credit files if one of you defaults.
What happens to the sale proceeds when the property is finally sold ie what shares. Assuming your mum is not living there, her profit would be liable to capital gains tax. When your mum dies what will happen to her share. Has she made a will and who are the beneficiaries. What is IHT position. Who is putting up the deposit and how much. Any potential care home fees issues.
Does mortgage protection policy pay off all of mortgage if either you or partner die. Is partner solvent. What happens to property if you break up. Have you both made wills.

bunglesabout

Hi Rodger
none of us have made a will yet, but we will intend to, after I have sought financial advice about the mortgage. In this instance I just wanted some idea of the kind of questions I can ask the advisor.
My mother will be laying down the deposit which will be roughly £80,000 and I and my partner will be adding £20,000 to this and will get a mortgage of approx 140,000, which (hopefully) will allow us to buy a property in the region of £240,000
At the moment a care home is not an issue for my mother as she is in very good health.
The combined move is to help her to move from the terraced property she currently lives and also to help us move out of a small flat to a bigger home. My partner and her get along great so that is not a concern.
It also brings me peace of mind, that my mother is already with me should her health take a turn for the worse in her later years.
We intend to buy a property that will last us all a long time, so selling on is not something any of us are thinking about at the mo.
The main focus I have is to provide us all with a better home environment (my mother's neighbours are awful and have made her life a nightmare) and also ensure that I do all I can legally to make everyone comfortable and secure with this buy.
Especially my mother, as I am always concious of the fact that her deposit will be the lion share of the value of the house.
Therefore any possible pitfalls or questions I can ask my FA will definitely prepare me for our meeting.

Thanks for the reply by the way.:)

Bungle