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Joint Mortgages
Having a joint mortgage means that you are both or all responsible for paying the mortgage payments. It does not matter from whom the payment is made, so long as the monthly repayments or interest are paid to the lender. When you come to terminate the mortgage, you will be able to look at your records to see the proportions in which the remaining equity should be split.
If any of the joint owners is unable to pay into the mortgage for any reason, the payments will still be required by the lender and alternative arrangements should be made to pay the mortgage or reduce the amounts that need to be paid.
As joint ownership is a developing trend, more and more mortgage lenders are offering mortgages designed specifically with joint owners in mind, and the choice of joint mortgages continues to increase. A typical example of what the mortgage lenders will lend is three times one person's salary plus one times each of up to three other joint owners, but a recent new mortgage claims to lend over three times combined salaries.
How much can we borrow for a joint ownership mortgage?
The first things you need to consider when buying a property are how much you can borrow and what is the most suitable mortgage for your circumstances. Luckily, more and more lenders are offering mortgages for joint ownership. It is possible for up to 5 people to borrow together but only 4 people can be on the title deeds ie own the property.
Legally there are two types of joint ownership. You can either own the property as a EUROS joint tenants' or as a EUROS tenants in common'. Do not be put off by the terminology. It has nothing to do with tenancies and applies to freehold or leasehold land.
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