Food & Drink0 min ago
Sole owner/joint mortgage
Hi is it possible to be sole owner of a property but have a joint mortgage over it with a friend who has no share in the ownership?
I know there are parent/child mortgages which allow this, but what if the joint mortgage is with a friend (ie no family or spouse relationship)?
Answers
No best answer has yet been selected by Billyjaan. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.What security has the friend to offer the mortgage company? None. Therefore he can't have a mortgage - it's a matter of definition.
There may be other ways of achieving the sme end (though I'm not sure what that would be) but not a mortgage.
The friend would have a claim to a share in the property regardless of the registered ownership anyway.
I don't think that would be a problem, the security would be the house it's self as the bank wouldn't lend more than the house was valued at.
But they would want to be sure that the person was commited to paying the mortgage and with no share in the house they may well reject such an application.
I am intrigued to know how a lender can lend money to someone using as security a property which he has no ownership of. Could I for example take out a mortgage on my (hated) neighbour's house, default and get him repossessed and evicted? I think not.
If some sort of loan on those lines is possible, it is not a mortgage. Part of it will be an unsecured loan.
Parent/child mortgage - Idea is that if child can't afford to buy alone, parents can take joint mortgage with child, but title can be in child's sole name. Bank of Ireland does this, & I think there are others too.
There was also a case when a man in process of divorce bought a new house with his girlfriend, in her sole name. Girlfriend died in car crash...and he was left with no right to the property.He contributed to the mortgage, but I don't know if just his or both names were on the mortgage.
So, I think it can be done...You CAN be party to a mortgage without being on the title deeds.
As for WHY anyone would agree to this.... In my case, I need to borrow a higher amount than my income would otherwise allow, and my best friend has suggested he support me with a joint mortgage. Yes, some would say he is mad. I say he is an absolute gem. I have helped him before, now he wants to help me through a tough patch. In reality, if we get the mortgage, I will make all the monthly payments.
I am still investigating this...