Buying a share of a property, what mortgages are available

n1koolkat

I have found someone on Sharedspaces to buy a property with as we cannot afford to buy on our own. I am now looking at mortgages but am not sure what type of a mortgage to apply for (not fixed, variable etc). Am i right in thinking that we would be treated as a "couple" and should be applying for a single mortgage? What if one party is contributing a larger deposit will this make any difference? Any suggestions would be appreciated.

KrisBolton

You are right to think that you will be applying as a "couple". Basically this system works exactly as if a husband-wife were applying, or any type of union (i.e. boyfriend-girlfriend, boyfriend-boyfriend, friend-friend etc.)

With regards to the deposits, ensure that everything is documented by a solicitor with reference to how much each person put it, what the split of the future equity in the property will be, and what happens if one wants to sell, among other considerations. You need to protect yourself and your money so ensure this happens.

The mortgage will be assessed as any other mortgage, using income from both sources and your collective deposits, as well as any debts either of you have.

A warning to you that you need to make sure you know what type of person you are getting involved with, as both of you will be liable for the full mortgage payments if the other person suddenly disappears.

n1koolkat

Thanks for the advice. I'll definately add it to my list of things to look out for.

Griptool

Be aware that you may be buying at the top of the market, if the market takes the same route as USA Ireland and Spain you will be stuck with negative equity and a disappearing mortgage partner!

n1koolkat

True, however for now i'm a just looking so that i'll hopefully be ready when things calm down