Loan or Mortgage?? Can you help me?

Krave

Hi people, my first day here..my time has come..
I am very excited that at last I have the possibility to buy the home which I have lived in for many years. It has been offered to me at 189K. I want to buy it with my partner, 50/50, he has half the amount but I have nothing. So I need to find the other half. Do I shop around for a 95k loan or a mortgage? What advantages should I look out for as he has half the amount? I know nothing about such matters so I would appreciate your advice..in simple terms please thank you.

Doozergirl

You will need a mortgage. You can't get a loan that isn't secured for that amount of money.

When you have a mortgage, if both your names are on the deeds of the house, then both your names need to be on the mortgage as well - it is a joint liability.

In order for your partner to start to protect his share, you would need a declaration of trust - a solicitor will help you draw it up. What would be fair is that any drop or any increase in price is split 50/50 but that profit or loss is added to or deducted from your partner's deposit when you come to sell - ie they get back exactly what they put in and the effects of the property market on that share. You may own different shares in the property itself as joint tenants but ultimately, if you ddefault on mortgage repayments the whole property will be repossessed - that is the risk your partner takes.

I guess it just depends on how secure you both feelyour relationship is.