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Can I get a second mortgage?
Debtfree1014
Posts: 14 Forumite
As things stand, I have a mortgage with my wife on our home and I was wondering if it would be possible to be the second person on my brothers mortgage.
So me and my wife could have borrowed up to £375,000, but found a house we loved for a little over £200,000. My brother can get a mortgage himself for around £125,000 but he'd like a place that's worth around £175,000 could I put myself on the mortgage to help him out?
What would be the pro's and cons for this?
Thanks in advance!
So me and my wife could have borrowed up to £375,000, but found a house we loved for a little over £200,000. My brother can get a mortgage himself for around £125,000 but he'd like a place that's worth around £175,000 could I put myself on the mortgage to help him out?
What would be the pro's and cons for this?
Thanks in advance!
0
Comments
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extra stamp duty liable for you
If you wanted the money back, it would be difficult as he would have to sell it or try and find money himself.
Why would you? Money and family should never mix
Only help him out if you don't expect anything back ever"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
Would you also intend on owning the property?I 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 advice0 -
If you fancy a bit of financial Russian roulette, go for a 'joint borrower, sole proprietor' mortgage with a family member. This is what used to be known as a "guarantor" mortgage years ago.
Your brother is the only owner of the property while you take on 100% responsibility for the mortgage.
You don't have any interest in the property so no SDLT surcharge.
You are going to have this round your neck when you want to remortgage or move house in future as it's a liability like any other credit commitment or mortgage, reducing your future borrowing power.
Crossed with YHM who was probably heading towards my street!I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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