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Copied from mortgages:Group mortgage
ambercelery
Posts: 51 Forumite
Sorry for the repeat post but i put this on the mortgages forum and have been unsuccessful in a reply.
Was wondering if anyone here can help.. Thanks..
Can anyone help me on this matter? I obviously know about mortgages and joint mortgages between couples etc, but is such a thing as a group mortgage possible. It might seem like a strange scenario but i was wondering what income the mortgage lender would take into account if say 5 people wanted to club together and buy a property. Would they assess each persons salary and outgoings - or would it have to be mainly in one persons name?
Could it be resolved by setting up a company - each of the 5 people becoming directors of that company - and then the company applying for a mortgage. If this was the case, what is taken into consideration for the mortgage application ? is it how much money the company has ? or how much its directors have?
To follow this up, with an example where this may be wanted. 5 investors wish to put some money aside each month for their retirement. Pensions are not too good at the moment so they suggest clubbing 200 pounds per month each into an account (with contracts etc). Then using this money after a year to buy a property. The property is then rented out providing income and the 200 per month is still invested in the bank account. The bank account grows (hopefully) and pays off the mortgage and repairs on the property until the house is producing a profit for the owners (through rental).
Any help would be greatly appreciated?
Was wondering if anyone here can help.. Thanks..
Can anyone help me on this matter? I obviously know about mortgages and joint mortgages between couples etc, but is such a thing as a group mortgage possible. It might seem like a strange scenario but i was wondering what income the mortgage lender would take into account if say 5 people wanted to club together and buy a property. Would they assess each persons salary and outgoings - or would it have to be mainly in one persons name?
Could it be resolved by setting up a company - each of the 5 people becoming directors of that company - and then the company applying for a mortgage. If this was the case, what is taken into consideration for the mortgage application ? is it how much money the company has ? or how much its directors have?
To follow this up, with an example where this may be wanted. 5 investors wish to put some money aside each month for their retirement. Pensions are not too good at the moment so they suggest clubbing 200 pounds per month each into an account (with contracts etc). Then using this money after a year to buy a property. The property is then rented out providing income and the 200 per month is still invested in the bank account. The bank account grows (hopefully) and pays off the mortgage and repairs on the property until the house is producing a profit for the owners (through rental).
Any help would be greatly appreciated?
0
Comments
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Story in the Guardian here regarding multiple borrowers. A financial adviser who knows about this subject is mentioned, so you could contact them.
I don't think it's hard to get multiple borrower mortgages - given that you are jointly and severally liable for the whole mortgage, it's additional cover for them.0 -
Setup a company and divide the shares equally. Lenders will give a mortgage to the company. Be careful to work out get-out rules for each partner, as in selling their shares, and how you decide what properties to buy or sell.0
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