A joint mortgage is a loan by a bank or building society that is secured on a property –Freehold House or Leasehold Flat taken out in the names of two or more people.
A joint mortgage means you are both responsible and liable for the mortgage payments, “jointly and severally”. If one of you is unable to contribute for whatever reason then the other must cover the whole of the mortgage and not just their share.
Purchasing with a Partner
When purchasing a property with a partner it is important to remember that it is a commitment, not just to each other, but to the mortgage lender as well.
When couples pool their income it can enhance their buying power, however there are many things to consider.
When you purchase a property with another person you can either buy as “Joint Tenants” or “Tenants In Common”. This choice can have profound effects in the future.
“Joint tenants” means that you both own 100% of the property. If one person dies the other automatically inherits the asset.
“Tenants in Common” lets each individual bequeath their half of the property to each other, or another party. This method of ownership is often a better tax planning tool.
You also need to consider carefully how to protect your home if something should happen to your partner.
When taking a mortgage there are also the usual questions, such as the type of loan you should go for fixed or tracker, for example.
In the current market lenders are far stricter with their lending criteria and because of this, the knowledge and contacts of a mortgage broker can be the difference between getting a mortgage and then getting the most competitive one for your circumstances.
When applying for a joint residential mortgage, it’s vital to not only get a competitive interest rate but also to find a product that suits your lifestyle and needs.
Things To Consider
- How much deposit do we have?
- How much can we borrow?
- What is our Repayment Strategy?
- Do we want to budget and have the security of fixed monthly payments?
- Do we have variable income or bonuses’ and therefore need flexibility to make lump sum payments?
- What if we don’t, or can’t sell our current home?
- What if as joint purchasers, we go our separate ways. What happens next?
- What if one of us decides to give up work?
- How much will we need to pay in fees?
- How do we know the property is worth what we are paying for it?
In the current climate, and following the Mortgage Market Review (MMR) engaging the services of a broker has never been more essential. One Stop Finance provides an advice and recommendation service and a guiding hand throughout the whole process to help address all of these questions and more.
One Stop Finance is a mortgage broker who offers a whole of market service; whether that is High Street lenders, broker only lenders, Private Banks, Offshore lenders, small building societies or specialist loan providers. As part of the Quilter network, we have access to exclusive products which aren’t available on the high street, which can make a real difference.
All our professional advisers are here to act for you, first and foremost, to help you choose the most suitable mortgage, and guide you through the process with ease.
Our Advisers and support staff are here to help smooth process from start to finish.
For more information please call us on 020 8441 2605 or 01442 232 272. Alternatively click here for our enquiry form.