Three applicants for a mortgage?

js9530

Is it possible to have three (unrelated) people jointly applying for a mortgage?

If so, does anyone know which banks etc offer these and roughly what sort of multiples they use to establish the borrowing limit?

AndrewSmith

Hi,

Yes, I have arranged numerous mortgages for multiple applicants.

The most common is a group of friends wanting to buy together to get on the property ladder.

Not accepted by everyone but there are a large number that will accept it.

Income multiples will vary but generally the same for 3 as it is for 2.

Andy

js9530

That's exactly my situation - houses too expensive to go it alone but have a couple of friends who are in the same position as me.

The difficulty I've found seems to be getting an agreement in principle. Whilst everywhere's geared up to do this for one or two applicants, it seems to get a lot trickier with three. I've been told before that we'd have to make a full application before we could be properly checked - does that sound right?

AndrewSmith

Who told you that?

Most lenders who operate the system of accepting more than 2 applicants will also do this as an AIP, purely not to waste their time or yours with a full application that may not get accepted.

CHeers

Andy

TangentMan

Agreements in Principle are essentially a fast track type process and you fast track your most straightforward business (i.e. sole and joint). Hence you might not be a candidate for a fast track.

There shouldn't be any complications in getting a 3 borrower mortgage (although you may find some of the more exotic products are not available to you).

Go to a lender / broker and ask for a chat they should be able to produce you a three person KFI on site, which whilst not an AIP at least tells you they can cope with 3 people.

AndrewSmith

An agreement in principle is not a fast track application, it is an agreement subject to full underwriting and proof of the information provided.

It is the more complex or non standard cases that usually warrant an agreement in principle first to ensure that the applicants will fit the lenders criteria.

js9530

Thank you for all the information.

So when would a full credit check be run? Is this done before an agreement in principle is given by the lender OR is it done when a full application is made once an offer has been accepted on a property?

herbiesjp

Normally the credit check is done at the same time as the agreement in principle

AndrewSmith

js9530 wrote:

Thank you for all the information.

So when would a full credit check be run? Is this done before an agreement in principle is given by the lender OR is it done when a full application is made once an offer has been accepted on a property?

The majority of lenders will carry out a credit check / credit score to ascertain an agreement in principle.

As long as the information provided for the AIP is correct and can be evidenced by documentation then there is no reason (apart from property valuation/survey problems) why they would not proceed to a full offer once the full application has been submitted and survey is back satisfactorally.

It is important to understand that the AIP is the first stage of the application process and is used to determine whether the lender will lend to you, and how much. It is always followed by a full application once the property details are known.

It is not a 'fast track' application. That is something competely different again.

:beer:

Andy