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House prices may have fallen recently but for a lot of people, buying your first home is just not financially viable. With a Joint Mortgage, you can buy together with one or more people and pool your borrowing power together to achieve a higher value mortgage (Joint Mortgage) and get your foot on the property ladder.
Joint Mortgages (including Joint Mortgages For First Time Buyers) are where you buy a property with a friend(s), relative(s), developer or even a stranger and take out a mortgage together. Also sometimes called Joint Equity and Joint Ownership, it differs from shared ownership and because of expensive house prices and the difficulty of borrowing, a joint mortgage is proving more and more popular with house buyers.
Everyone who takes out a joint mortgage is jointly responsible for making the repayments. Mortgage lenders are not concerned with how much percentage of the repayment each joint owner pays just as long as the monthly repayments are met each month.
Dependent upon how much you pay will determine the amount of equity you own in the house and buying a house with other people by using a joint mortgage can be a great way to build equity up in the house to then use to by a property on your own or even buy the other persons share in the house so that you own the house out right.
Many people will draw up an ownership agreement with a solicitor and also put a will in place incase the unfortunate should happen. It is also worth noting that many mortgage lenders will require a joint mortgage payment protection insurance policy is in place incase you or any co-owner come into difficulties with your/their share of the monthly payments due to an accident or redundancy for example
There are a lot of responsibilities to carefully consider when taking out a joint mortgage and you should always plan ahead for when you decide or are ready to own your own home outright.
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