Joint Mortgages
With property prices on the increase, it can be difficult for some people to make that initial move and buy their first property. It's not such a problem for married couples or those who are co-habiting as they can apply for a joint mortgage. By combining both the applicants incomes, you will generally be given a bigger mortgage than if you were buying singly. A joint mortgage also means it could be easier to save up an initial deposit, if there are two of you doing it as a joint venture.
Even if you are not married or with a partner, you still have an opportunity to apply for a joint mortgage. Many people are now looking at other ways of sharing the responsibility of property buying. It is becoming more common for 2 friends, a group of friends or family members to actually club together and get a joint mortgage.
Joint mortgages are a great way for first-time buyers to purchase their first home, and now it is easy enough to get one even if you are not buying as a traditional married couple. Parents are now helping their sons and daughters get their first home or flat, sisters and brothers are clubbing together, and it's a great way for friends to have their own place too. So there's no need to wait until you are in a better financial situation, you can combine your resources with other people and get on the property ladder quicker.
As with choosing any financial service, it is important to find the one that suits your circumstances. It is essential to shop around and select the most suitable mortgage and preferably one with a reasonable rate of interest, so you don't end up paying over the odds. Once you have picked your property, saved up your joint deposit and chosen your mortgage provider you can go about arranging a joint mortgage with them.
How Much Can You Borrow With A Joint Mortgage?
Mortgage lenders will usually offer 75-100% of the money needed to buy the property you desire. There are a couple of ways which mortgage providers will decide on how much money you can borrow to buy a house or flat with. Obviously the bigger the deposit you can provide the better, but generally they will combine the joint incomes and multiply them by 2.5 - 3.5. Therefore if you earn £20,000 and your partner earns £25,000 the lender will calculate what you can borrow from a combined income of £45,000. This could be anywhere between £112,500 and £157,500.
Joint ownership does mean that everyone named on the mortgage is jointly responsible for the mortgage and repayments, and it is always advisable to take out a legal agreement which will cover certain eventualities, such as if one of the owners wants to leave or loses their job. You can also lay out how much of the property each person owes depending on their income and contribution. It is a sensible way for each owner to protect their investment as circumstances do change.
Related Articles
The world of finance has a host of different products and offers out there to entice the general public to want them. Some are very good value, some are very useful but there are always a few bad grapes in the bunch. So here is a short guide on the bad deals in finance - the ones to avoid.
Read on...
Right, you have decided that you need a loan. The next stage is to work out how much you need to borrow, but you also need to consider how much you can realistically afford to repay every month until the loan is fully paid off.
Read on...
Most people in the UK have at least one current bank account, some may have a couple for different purposes or maybe you have a neglected pre-historic account that was opened for you when you were 10 years old. Either way it is well worth taking a look and seeing if your current accounts need an overhaul.
Read on...
Mortgage Exit Fees or Mortgage Exit Administration Fee (MEAF) as they are officially known, are a charge incurred when you finally get to that lucky moment when you fully pay off your mortgage. The MEAF is to cover general administration costs of ending your mortgage, including staff and legal costs and changing the property registration details with the Land Registry, so the property bears your name.
Read on...
If you are in a relationship or married, you are eligible to apply for a joint loan together. Joint loans are one way to raise finance for any purpose you require. You can apply for a loan on your own, however you are more likely to be eligible to borrow a larger amount of money if it is a joint application. This is because the lender will determine how much money to offer you according to your income. If the income is a joint one, it'll be larger than a single salary.
Read on...
Related News Items
Simon Rubinsohn, a leading economist at the Royal Institution of Chartered Surveyors says there's only a 10% chance of a property crash like the one of the early 1990s.
Read on...
Predictions from experts within the property markets are forecasting what they think will happen with the value of houses in the coming year. Previously it has been predicted that property prices would drop from the current annual growth of 7% to just 1%.
Read on...
According to the latest findings of the Council of Mortgage Lender (CML), the mortgage lending market has slowed down. As of the end August this year, lending was down by 3% than at the same time last year.
Read on...
Just 2 years ago Tesco launched its own mortgage package, however they have discovered that the one mortgage they offered was not competitive enough for the market and lacked choice for customers, so the Tesco group has changed tack and opted to go with a mortgage finder instead.
Read on...
The date for tax returns is almost upon us. For those who do their personal tax either online or the old-fashioned paper way, the 30th September is a date pencilled in red in their diaries. For many it can be an easy task, a series of simple figures that are added together. For others it can be a more complicated event that is put off until the very last minute.
Read on...
