Can I have a tenancy-in-common arrangement but a seperate mortgage to my friend?

Phill_555

Hello, I am looking for a little bit of advice about buying a house with my friend.

I would like to arrange my own mortgage and him arrange his and we can pool our money to buy a house, is this possible or do we have to have the same mortgage and just pay whatever share we decide?

The thing is I really feel an Offset mortgage will be the best for me as im good with my finances and believe it will incentivise me to pay it off sooner and not spend so much on luxuries (no that I go mad anyway). But if I have an offset mortgage I dont want to be having a joint current account with him as he isnt my 'life-partner' or anything like that!

Also I have 'other income' coming in every month which ranges between £500-£1000 but I am not prepared to disclose this to a lender as it is not guaranteed in the long term but obviously while it is coming in will be used to lower my mortgage and the interest im paying.

david29dpo

i have done this but its on one mortgage. we have tenants in common which is not 50-50, so a trust deed was set up showing who owns what. the problem is if one of us dont pay, the other has to. i am not sure if you can have a mortgage each, but i can find out.

Bossyboots

I would be surprised if you could have a mortgage each as both mortgagees would expect to hold the first charge on the property. It might work if you both used the same company and it does remove the problem of being joint and severally liable for each other's debt if one doesn't pay the mortgage but that of course brings its own risk that the mortgagee will foreclose on the property if someone gets into arrears.

Phill_555

Thanks for the quick reply guys, much appreciated. I realise whats involved with the setting up of a trust deed and if one of us doesnt pay etc but I would love to know if the plans I have can actually be achieved? So can we both go and get our own mortgages, secured on the same property, but with different providers?

The person im looking to buy with is a good friend of many years who also has a very well paid job, so there are no issues with one not paying or trust etc. Baring that in mind, what about if he managed to take out the whole mortgage then i pay him x amount over x years? Is there a deed we can write up that will make this agreement legally binding regarding percentage of property owned?