Advice on whether this is possible!

Anna1978

Hi,

I'm looking at various options for buying a house. A relative has said that they would buy a house with me, where I would own 50% and they would own 50%. They would have the money outright for their 50% but I would need a mortgage for mine.

Is it possible to get a mortgage in this situation? Would a bank lend in this situation?

Thanks!

ACG

Yes, but they would need to go on the mortgage with you, even if its only you making the payments. That means if they have any other mortgages in the background that would need to be taken into account or if they want a mortgage in the future - your mortgage would have an impact on that.

kingstreet

You can have more borrowers than there are owners, but not the other way round.

A lender cannot take half a property as security, unless it is offered as part of a Government shared ownership scheme.

CLAPTON

Anna1978 wrote: »

Hi,

I'm looking at various options for buying a house. A relative has said that they would buy a house with me, where I would own 50% and they would own 50%. They would have the money outright for their 50% but I would need a mortgage for mine.

Is it possible to get a mortgage in this situation? Would a bank lend in this situation?

Thanks!

in addition to the mortgage issue (both will need to be on it) do think about other issues:
-capital gains tax on the relative's half when it's sold
-what happens if they want their money back?
-what happens if they die (some-else will own half your house)

etc

Anna1978

OK, thanks for the help. I thought that they may have to go on the mortgage too but wasn't completely sure. I'll have to have a discussion to see what the best way forward is as I'm not sure they will want to go on the mortgage.