Mortgage with 3 Names

newdud

We are in the process of buying a property shared between three people.

Which lenders provide mortgage to 3 people ? so far I can only find Natwest, are there any others.

ACG

There are a couple more yes, probably on lower rates than natwest too.

Unfortunately i cant say which lenders in particular as it could be seen as leading. A broker will be able to help though if you are struggling.

makeitstop

ACG wrote: »

There are a couple more yes, probably on lower rates than natwest too.

Unfortunately i cant say which lenders in particular as it could be seen as leading. A broker will be able to help though if you are struggling.

Can I just ask a question of you ACG...

If there are three people on a martgage, does it necessarily mean that "all three" have to reside in the property.?

Apologies for jumping in on the thread O.P.

ACG

No, although some lenders do stipulate that all 3 need to reside in the property on completion. If not all 3 people are residing in the property then its worth speaking to the lender beforehand.

Also not all lenders will accept all 3 incomes. Some will only accept 2, so if you have put a parent on there for instance to try and bump up the borrowing amount, that would not work with all lenders.

Thrugelmir

makeitstop wrote: »

If there are three people on a martgage, does it necessarily mean that "all three" have to reside in the property.?

What's the purpose of the third party being included on the mortgage application?

Goldiegirl

When I was at the Halifax, they did mortgages in up to four names, so they may be worth contacting

makeitstop

Thrugelmir wrote: »

What's the purpose of the third party being included on the mortgage application?

Just an enquiry really, as it was somewhat relevant to a recent offer I made on a property.

Myself and wife were looking to buy along with daughter and son in law. We intended to keep the house and proportion of garden, and daughter and son in law were intedning to build new house on another part of the land coming with the property.

The idea was to buy with a fixed term of approx two years, and then when remortgaging, we would look to split title deeds and separate the land up.

The question as to whether three people instead of two was simply to give us extra borrowing power. Myself and wife could borrow up to perhaps £210K, although we are 48 years old, which is a little restrictive. Daughter and son in law are 28years old. Myself and wife own our current home and have no existing mortgage, whereas daughter and son in law have their own home with mortgage of £90K outstanding.

So the upshot of this is.... Myself and wife would live at the new property, and daughter and son in law would hold an interest in it, until the time when we looked to split the land and they went ahead with a new build.

Apologies for the lengthy post.

Thrugelmir

makeitstop wrote: »

Myself and wife were looking to buy along with daughter and son in law. We intended to keep the house and proportion of garden, and daughter and son in law were intedning to build new house on another part of the land coming with the property.

You should run this idea past any potential lender. As development splitting of the plot may well have a detrimental impact on the value of the security held by the lender.