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Any Potential Troubles Ahead?......Helping a Friend with Buy to Let Mortgage
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Terling
Posts: 1 Newbie
A close friend has asked if they could put me down on their BTL mortgage application for better interest rates apparently. I have no financial interest in the project at all and won’t be contributing anything towards the deposit. It’s literally just my name on the mortgage. I would like to help her.
I have no doubt about her ability to meet the payments. However, I would like your opinion on if I should be agreeing to do this.
What are the potential risks?
And how can I protect myself if I do agree to go ahead with it?
Thank you for your responses.
I have no doubt about her ability to meet the payments. However, I would like your opinion on if I should be agreeing to do this.
What are the potential risks?
And how can I protect myself if I do agree to go ahead with it?
Thank you for your responses.
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Comments
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However, I would like your opinion on if I should be agreeing to do this.
No.What are the potential risks?
That you end up having to pay the entire mortgage, with absolutely zero to show for it.And how can I protect myself if I do agree to go ahead with it?
You can't.
"Putting yourself on the mortgage" to "get a better interest rate" is agreeing to be jointly and severally liable for the entire mortgage debt, meaning if your friend stops paying the mortgage for any reason whatsoever, you're responsible for the lot.
Doing this has a supermarket's worth of cans full of worms that're too numerous to even begin counting, imo you'd be nuts to even entertain the idea.0 -
No.
That you end up having to pay the entire mortgage, with absolutely zero to show for it.
You can't.
"Putting yourself on the mortgage" to "get a better interest rate" is agreeing to be jointly and severally liable for the entire mortgage debt, meaning if your friend stops paying the mortgage for any reason whatsoever, you're responsible for the lot.
Doing this has a supermarket's worth of cans full of worms that're too numerous to even begin counting, imo you'd be nuts to even entertain the idea.
This hits the nail on the head. Crazy idea.I am a Financial Adviser specialising in Mortgages, Protection, Health and Medical Insurance. I also write wills. All information posted on this site is for discussion only, and should not be taken as advice.0 -
This is a clear case of DDII am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Why would you want the risk of running a business without any of the rewards? Being on the mortgage means you would own the property and could have all kinds of potential issues such as you ending up being a landlord with all the legal responsibilities that goes along with that including paying tax on your share of the rent even if your friend keeps all the rent.0
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OP, do you know SazJ ? They had an equally daft idea:
https://forums.moneysavingexpert.com/discussion/5244665"Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!0
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