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    • nizzex
    • By nizzex 21st May 19, 3:41 PM
    • 13Posts
    • 0Thanks
    nizzex
    First Mortgage - Advice Please
    • #1
    • 21st May 19, 3:41 PM
    First Mortgage - Advice Please 21st May 19 at 3:41 PM
    Hi Everyone


    Hope you are all well.


    I am looking to get onto the property ladder with our first mortgage. I am married (no kids) and just hit 30.
    My brother (single) is doing well in his work and also is wanting to buy a property.
    We have decided and agreed to buy a nice home with both can give in and jointly take out a mortgage.


    I earn around 24k pa and he earns 38k pa. Combined we can put down around 70k.

    Property wise we are looking around 250k-300k value home in East Midlands.

    I really do have much experience nor does he regarding getting started, so I have a few question

    - Is 70k combined deposit good enough?
    - When it comes to applying how would it work, do we open a joint account put it all in there?
    - Property wise, do you recon they would agree purchase on a 250-300k property?
    - New homes, I am guessing a can get the government loan up to 20% , so plus our deposit, the rest will be a mortgage loan?
    - Any financial stuff we need to look out for before applying?
    - In order to get a mortgage agreement so we get a agreement in principle before checking out properties? And how long is agreement normally valid for?


    I just really want to make sure I understand everyone and get it right before applying. Your advice is very welcome
Page 1
    • AnotherJoe
    • By AnotherJoe 21st May 19, 3:57 PM
    • 15,955 Posts
    • 19,166 Thanks
    AnotherJoe
    • #2
    • 21st May 19, 3:57 PM
    • #2
    • 21st May 19, 3:57 PM
    Dont do it.
    If you do do it the most important thing is nothing to do with what you've asked.
    The most important thing by far is the exit agreement.
    Which should describe how the house will be sold, and who makes that decision (it shoudl be unilateral, any one person can) and that all costs are equally split. And what happens to the equity. is it shared equally? What happen to deposits? repaid as original or as pro-rated by how much the house went up (or down) in value?
    It also states what happens if one person doesn't pay their share of mortgage or rent (ideally, that money is logged and removed from their share of the proceeds when the house is sold)
    Plus a shed load more of issues, suppose you fall out and one person decides just not to sign any papers to do with sale? Or wont agree to any sale price. You need to cover all these types of issues.
    Plus all the ordinary stuff, such as how is maintenance, council tax, water rates, services etc etc etc etc covered? is there a budget account you pay into or pay as you go or what?



    Also, your post is unclear, would this be a residence for all 3 of you? A BTL?

    And is your partner also buying or is it just you and brother? You've only mentioned two salaries.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • nizzex
    • By nizzex 21st May 19, 4:35 PM
    • 13 Posts
    • 0 Thanks
    nizzex
    • #3
    • 21st May 19, 4:35 PM
    • #3
    • 21st May 19, 4:35 PM
    Dont do it.
    If you do do it the most important thing is nothing to do with what you've asked.
    The most important thing by far is the exit agreement.
    Which should describe how the house will be sold, and who makes that decision (it shoudl be unilateral, any one person can) and that all costs are equally split. And what happens to the equity. is it shared equally? What happen to deposits? repaid as original or as pro-rated by how much the house went up (or down) in value?
    It also states what happens if one person doesn't pay their share of mortgage or rent (ideally, that money is logged and removed from their share of the proceeds when the house is sold)
    Plus a shed load more of issues, suppose you fall out and one person decides just not to sign any papers to do with sale? Or wont agree to any sale price. You need to cover all these types of issues.
    Plus all the ordinary stuff, such as how is maintenance, council tax, water rates, services etc etc etc etc covered? is there a budget account you pay into or pay as you go or what?



    Also, your post is unclear, would this be a residence for all 3 of you? A BTL?

    And is your partner also buying or is it just you and brother? You've only mentioned two salaries.
    Originally posted by AnotherJoe

    Thanks for your response.


    I fully understand your concerns and the potentials for things to go bad. We have a very good understanding, we have a strong family background, financially have supported each other always and conducted business with no worries but I take on board that should the possibility this go wrong an agreement is put in place.

    We will share 50/50 ownership as well as repayments, sharing the payments of council tax, running costs, etc is agreed.

    We have ordinary accounts. It will be a residential property to live in so not BTL.

    It will be just me and brothers salaries used, I am responsible for my own wife.

    Apart from the concerns of having a joint mortgage any other impartial advise welcome
    • SouthLondonUser
    • By SouthLondonUser 22nd May 19, 3:28 PM
    • 1,030 Posts
    • 567 Thanks
    SouthLondonUser
    • #4
    • 22nd May 19, 3:28 PM
    • #4
    • 22nd May 19, 3:28 PM
    I fully understand your concerns and the potentials for things to go bad.
    Originally posted by nizzex
    I'll never forget a solicitor who said something like: "if every person who says that were right, I'd be unemployed!"
    • nizzex
    • By nizzex 23rd May 19, 9:00 PM
    • 13 Posts
    • 0 Thanks
    nizzex
    • #5
    • 23rd May 19, 9:00 PM
    • #5
    • 23rd May 19, 9:00 PM
    Would it be kind enough to ask for people not to concentrate on the fact its a joint mortgage with my brother and actually help me and answer the questions at hand anyone please? Anyone?
    • nizzex
    • By nizzex 24th May 19, 2:50 PM
    • 13 Posts
    • 0 Thanks
    nizzex
    • #6
    • 24th May 19, 2:50 PM
    • #6
    • 24th May 19, 2:50 PM
    bump......
    • Thrugelmir
    • By Thrugelmir 24th May 19, 3:02 PM
    • 64,857 Posts
    • 57,224 Thanks
    Thrugelmir
    • #7
    • 24th May 19, 3:02 PM
    • #7
    • 24th May 19, 3:02 PM
    Would it be kind enough to ask for people not to concentrate on the fact it’s a joint mortgage with my brother and actually help me and answer the questions at hand anyone please? Anyone?
    Originally posted by nizzex
    You do have a wife. This does add potential complexity in the event of relationship breakdown. Whether she is party to the mortgage or not.

    Nothing to stop you going ahead with your plans. Your decision alone.

    Likewise think ahead many years. You do need to consider the what if's for a whole variety of reasons.
    If the financial system has a defect, it is that it reflects and magnifies what we human beings are like. Money amplifies our tendency to overreact, to swing from exuberance when things are going well to deep depression when they go wrong. Booms and busts are products, at root, of our emotional volatility.
    ― Niall Ferguson
    • foxy-stoat
    • By foxy-stoat 24th May 19, 3:12 PM
    • 5,100 Posts
    • 3,050 Thanks
    foxy-stoat
    • #8
    • 24th May 19, 3:12 PM
    • #8
    • 24th May 19, 3:12 PM
    I see mess everywhere!!!!
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