Shared ownership Mortgages

gillyd88

Me and a very good friend are considering buying a house through our local government scheme for shared ownership. We are hoping to buy 25% of a house for £32500.

Does anyone know of the problems we may face getting a mortgage?

Will it have to be a specialist mortgage company?

Also, the main thing i want to know if anyone has any idea, can we both get our own individual mortgage of £16250 so it reduces the risk for both of us?

Thanks

BadgerFace_2

Sorry to be blunt, but it sounds like a terrible idea. You and your friend would be better off renting a place together.

For the sake of a 12.5% share in a property where you become responsible for all of the bills, repairs and maintenance. The prices are often set by the Housing Association, so it's unlikely you'll ever make any meaningful money on the venture.

The mortgage would need to be taken out jointly and you would both become liable should the other miss a payment.

Shared ownership can be good, for people who can't afford to buy their own place fully, but have a family etc and want a bit more stability. But for two friends, I can't see any advantages really, you won't want to live together forever.

wymondham

It's probably the quickest way of destroying your friendship - don't be financially dependant on each other - rent.