Joint mortgage

jamiebeard

Hi All,

This is my first post so please bere with me if its in the wrong place!

Basically me and my cousin have seen a house which we want to buy, renovate and possibly sell on (if not rent out)

I was just wondering how we would go about setting up a joint mortgage with us both being with different banks etc?

Would i be right in thinking we would have to set up a joint account together with a bank, put the money we have for the deposit and rennovation into this account, and the mortgage would be paid out of this also? Then could we use this account to take money out of to buy materials etc, then there would be no arguements over whos bought what because we would both put the same amount of money into the account.

Hope this makes sense,

Thanks

beecher2

It doesn't matter which accounts you have for the renovation money - your lender will be interested in the level of your deposit, your incomes and your credit histories. Make sure you do your research as you run the risk of renovated the house but not making a profit.

somethingcorporate

It has nothing to do with where the money is sat paying for the deposit and mortgage - I have had mortgages with 3 companies, 2 of which I have never had a bank account with.

Do some research on the house buying process and you will understand a bit more.

Thrugelmir

As this is a business venture then take professional advice and set up your relationship in a formal manner.

trulysaintly

If you are planning to renovate the property before letting it out, you will need an independent adviser to help you through the process.

The reason for this is that most Buy to Let providers will want you to have the property in a habitable condition before the property purchase is complete - if it really is a renovation job then you may need some specific lenders who offer specific refurbishment products.

If you plan is to let the property out, you will need to have in the region of 25% deposit - applying for a residential mortgage (with a lower deposit) and then renting it out won't work - if you did you would be in breach of the mortgage contract.

The only pre-requisite of the new mortgage provider would be that you had a joint bank account for the mortgage payments.

jamiebeard

I know it doesnt matter if the rennovation money is in the same account but surely that would be the easiest way so you would know everything was being paid 50/50?

Also i understand the process and have a mortgage in principle for myself only, i was just interested in how you can pay it fairly with 2 parties involved.