Can I Get a Mortgage With a Family Member
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Can I Get a Mortgage With a Family Member
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- 4.07% Initial
- 5 year fixed
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- 4.07% Initial
- 5 year fixed
- 6.3% APRC
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Cashback £0Free LegalsFree Valuation
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- Halifax
- 4.09% Initial
- 3 year fixed
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- Halifax
- 4.09% Initial
- 3 year fixed
- 7.3% APRC
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Cashback Max £250Free LegalsFree Valuation
- Get quotes
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- 4.11% Initial
- 5 year fixed
- 5.8% APRC
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Can I get a mortgage with a family member?
Perhaps you are wondering if you can get a mortgage with a family member if you struggle to get on the property ladder yourself.
It is possible to get a joint mortgage with friends and family members; you can even take out joint mortgages for more than two people. While it is more common for people to get a joint mortgage with a partner, you can also get a joint mortgage with friends and family members.
The lender will check the credit scores of each applicant during your application, so you should take some time to consider these factors before taking out a joint mortgage. Even if there are multiple applicants, having one person with an adverse history could result in higher interest rates or a denial of your application.
Additionally, you will need to figure out what will happen if one of the mortgage holders loses their income, relocates or wants to sell the house.
A joint mortgage can be set up in various ways, so if you agree to be a 'joint tenant', you will have equal rights to the property. If the home is sold, they will share a share of the profits and will automatically inherit the property if the other person passes away. A tenancy in common allows each tenant to own a different share of the property, and a tenant won't inherit the property if the other party dies.
When applying for a mortgage with others, you might want to consider having a solicitor draft a 'Deed of Trust,' a unique legal document between the different mortgage holders. In the agreement, you can specify things like each person's share of property, the responsibility for paying outgoings, and mediation and conflict resolution clauses.
Instead of directly being a joint mortgage holder, you can help a family member purchase their first home by taking out a Family Offset Mortgage. A savings account is linked to this type of mortgage. Since interest earned on the account contributes to the loan payment, the mortgage owner cannot access your savings, but they serve as a deposit on the property and lower the interest rate. You get all of your savings back once a certain percentage of the mortgage is paid off.
You may benefit from speaking to an independent mortgage adviser before taking out a joint mortgage. Different lenders have different policies for joint mortgages, so certain things that may be permissible with one lender may not be with another. Additionally, they can use their expert knowledge of the market to shop around and find the best plan for you based on their impartial advice regarding all aspects of mortgages.
Independent Advice
If you are not sure what mortgage options are possible with a family member speak to our independent mortgage broker team, who will be able to offer impartial advice, or you can call us on 0117 403 3464