Matt H
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Registered: 11th Sep 01
Location: South Yorkshire
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Can you get a mortgage where it's in your name but you're allowed to borrow based on the fact that you'd be sharing the house with someone else?
So basically one name on the mortgage, but with someone else paying rent to you
Or would it have to be both names on the mortgage?
Some friends of mine have just bought a house together & it's really nice, much better than what they could afford seperately & it's in a decent area, loads of space in the rooms, good garden, drive, garage etc. They payed 120K, which in comparison to what 60K would have got them (nothing) it's a viable option
Sort of makes sense in a way, as long as you know you can get on with the pther person OK
Anyone else have this arrangement?
Edit - new subject
[Edited on 20-08-2007 by Matt H]
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--DAN--
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I think you will only get a mortgage based on the income of those who are named on it, not on a potential rental income.
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Matt H
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Registered: 11th Sep 01
Location: South Yorkshire
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Sounds like a dumbass question now that Im reading it back 
Suppose what I meant was is there a sort of half & half between a normal motgage & a buy to let mortgage?
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Matt H
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Location: South Yorkshire
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Oh & also realistically is there a rule for how much an average person can borrow? From what I understand it's anything form 3-5 x your annual salary?
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--DAN--
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Used to be 3.5 x salary, but a few places offer x5 now.
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Matt H
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Location: South Yorkshire
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Cool, even at 3.5 salary me & a mate would be alright for something decent (do they work it as take home? Or before tax?)
Example of some of the places we could get
150K - 3 beds, detatched, corner plot, consevatory plus 31ft GAMES ROOM 
150K - 3 beds, en suite master (could cause arguments!), front & rear gardens, big diveway
122.5K - 2 beds, semi detatched, OK driveway, recently been decorated
^My mates old house, possibility of getting a knock down. 2nd bedroom was tiny though
130K - 3 beds detatched on same estate as above, drive, ok size garden
Another bedroom & detatched for an extra 7 grand
147.5K - same as above but a bit bigger
Going up up up in price but you get a palm tree 
140K - With a garage but your neighbours are a bit closer
140K - bit bigger, bit older, 3 bedrooms, plus garage & drive, bigger garden
That last one is outside of where I'd want to live though. Well, I'd prefer to liv ein Rossington than Wadworth
Lots to choose from basically 
[Edited on 19-08-2007 by Matt H]
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--DAN--
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I work with a few people from rosso. All of them look nice tbh.
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Matt H
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Location: South Yorkshire
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Where do you work? Small world lol
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--DAN--
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Two Sisters in Scunny.
Top one is really nice inside btw.
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Matt H
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Location: South Yorkshire
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It is, but it's also 20K more than the other 3 bedroomed house in the newer area
That 3 bed one at 130K seems really cheap, would be ideal to as it's nearish where I live now
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Colin
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Registered: 4th Apr 02
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What happens once one of you get a burd & wants a decent coup in peace???
Dont think I could buy a house with a mate
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--DAN--
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yeah i thought that seemed cheap. is the area ok? get to a financial advisor and see what you can borrow.
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Matt H
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Registered: 11th Sep 01
Location: South Yorkshire
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Taken from another thread on the same topic
quote:
Originally posted by Fad
Three mates of mine took out a mortgage between them on a 5 bed house. Thye all had equal sized rooms (luky) and the other two rooms were rented out with the agreed proceeds going towards the mortgage.
They made sure a contract was drawn up by a solicitor outlining their positions.
Bascially it went along the lines of they would all pay the equal amount towards the mortgage but if for what ever reason one of them wanted out, they could either sell their 1/3 at the current market value to the other party or Sell the property and split the proceeeds/debt three ways.
Two years down the line one of them is getting married so they agreed to sell the house and due to the current market, after they paid off the mortgage they all walked away with 12K each not bad?
Some renovation went on over the two years but nothing too substancial. Just shows how renting is just dead money dont it?
[Edited on 22-09-2006 by Fad]
So basically either sell the house or buy them out of it
Plus if it's a decent size house you can still live with someone & have your own space
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Matt H
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Location: South Yorkshire
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quote:
Originally posted by corsa-dan
yeah i thought that seemed cheap. is the area ok? get to a financial advisor and see what you can borrow.
Yeah it's in the same area as all the others, with the exception of the first one. Like I mentioned my mate lived in that area for a few years & it was fine
House prices in Rosso are generally quite low as it's a few miles out of the town centre
[Edited on 19-08-2007 by Matt H]
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--DAN--
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Go for it mate, just get a decent contract drawn up. Its a good way onto the ladder imo. good luck.
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Colin
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Think id rather have my own place & work up to something nice on my own as I can afford it!! Think the novelty of living with another guy will soon wear off - the neighbours might think your a couple
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Kurt
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Registered: 23rd Oct 05
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not sure if its been said yet but abbey national were advertising shared mortgages a while ago, was thinking of doing this myself with 2 mates
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Matt H
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Location: South Yorkshire
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Pretty much all companies do them I think, not to differant from you getting one with your boyfriend/girlfriend
Also if you've already got a loan out am I right in thinking you can consolidate that into your mortgage somehow?
Is that what this is?
http://www.northernrock.co.uk/mortgages/together.asp
My old boss did this when he bought his first place as he'd just taken a loan on a new car
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--DAN--
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yeah, you'll just basically be paying your loan over 25-30 years though.
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Colin
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Is the intrest rate not a bit crap on those 125% mortgages??? Like everything in life if it sounds too good to be true it probaby is!!
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GT4Brody
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Registered: 26th Sep 01
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holy shit, you could just about get a studio flat round here for 150k, is that a crap area or something?
If its the only way you cn get on the property ladder, then go for it. if you draw up contracts and make sure the person you are buying with is reliable then it should work out ok..
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Matt H
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Location: South Yorkshire
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Not sure about the interest rates, had a read of the site & couldn't see any mentioned.
As for the area, house prices are cheaper up here & it's not near the town centre. Studio apartment in the town centre would be about 120K
Would be good to hear from anyone who's done a 125% mortgage, nothing like a bit of first hand experience
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Dean_W
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Registered: 13th Dec 05
Location: Downham Market, Norfolk
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The thing with a 125% mortgage is the property won't cover the debt if you default.
Best thing to do is go and see an independant advisor. They will give you all the options available.
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Matt H
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Location: South Yorkshire
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Yeah true, but payment wise it's not going to be a lot more, possibly less infact
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Russ
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2 things you've got to remember
1. if you buy a house, you need to sel it for 25% more than u paid for it (this is hard)
2. its like having a car on finance, everytime something goes wrong, you'll think still paying a load out for this shit
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