Buying a house with a friend - me with mortgage, he without

NDaviesUK

Hi,

My friend and I would like to buy a house together, 50/50 split and we will have a deed of trust. 

The question is whether we can own the property together, but the mortgage to be in only one name e.g. he has cash to buy, I need to borrow. He doesn't want a mortage in his name.

I am expecting that we can't do this as the mortgage is against the property not the person.

Has anyone else been in this situation and had an inventive way of doing this? I have thought about a personal loan but the rates seem horribly high.

Thanks!

[Deleted User]

NDaviesUK said:

Hi,

My friend and I would like to buy a house together, 50/50 split and we will have a deed of trust. 

The question is whether we can own the property together, but the mortgage to be in only one name e.g. he has cash to buy, I need to borrow. He doesn't want a mortage in his name.

I am expecting that we can't do this as the mortgage is against the property not the person.

Has anyone else been in this situation and had an inventive way of doing this? I have thought about a personal loan but the rates seem horribly high.

Thanks!

Leaving aside the whole friends and money don’t mix….

HSBC did offer a mortgage where one person was liable for the mortgage debt but two people could be named on the deeds. I don’t know if HSBC still offer it or if other lenders have something similar. 

user1977

NDaviesUK said:

I am expecting that we can't do this as the mortgage is against the property not the person.

Correct, the bank will need their security to cover the whole property. They can't repossess half a house. That doesn't necessarily mean the obligation to repay the loan also needs to be joint, but you'd be greatly reducing the number of lenders prepared to do it that way. And even if you do it that way, it still means his half of the house is going to be at risk of repossession - so he might prefer to be a joint borrower and then at least he has some control over the repayments.