Joint Morgage with a friend

stonecold128

I have just turned 21 and looking at moving out from my parents hosue when i am 24, due to the house prices i am thinking about buying with a friend (he earns 15k, will go up soon).

I earn 21,500 a year base but unless something changes its 27,900 (car allowance & on call).

If i am carefull with my money (my fixed expences are about £250 a month after my car loan stops this january) i think i could save up £25k and he thinks he could save £20k.

We have thought about getting a shared mortgage for a £155k over 15 years (75k each) for a 200kish house with 4 bedrooms so we could rent out 2 bedrooms to logers and use that money to overpay the mortgage hopefully clearning it in about 10-13 years, and being such a low term keep the intrest low and a low amount to pay off if one wanted to sell up and move.

What do you think about this as a plan?

I cannot forsee any problems with the friendship between us (who ever does!) but obviously if we were to fall out then something would have to be agreed prior.

Is this something thats possible?

What do you guys think of this as a idea, in my area a 1 bedroom is 110ish 2 bedroom is 150ish.

stonecold128

That would be ideal but i am about 50k short of getting a morgage for 150k without stupid multiples (on my guaranteed income)

Badger_Lady

You can speak to your solicitor and draw up a legal agreement for a couple of hundred pounds - this will protect you both for the future and formalise your plans.

Sounds very sensible to me - you'll be way ahead of most people your age.