Joint Mortgage with Parents
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Joint Mortgage with Parents
Paul Collinson explains how a joint mortgage with parents works.
Can I get a joint mortgage with my parents? Is there an age limit?
Yes, you can get a joint mortgage with your parents. Most lenders will go to the age of 70, some to 75, and some even to 80. There is a limit, as lenders normally use the parents’ income for affordability – and people will stop working at a certain age.
Can I get a mortgage with my parents if they are retired?
Yes, you can. We may be able to use their pension income, or income from other sources such as property. They don’t have to be in full-time employment for that.
What’s the difference between Joint Tenants and Tenants in Common?
Joint Tenants is the normal way of doing things. It’s called a Joint Tenancy when the property ownership is split 50-50. You’re both joint and severally liable for it. With Tenants in Common, each person can own a certain specified share in the property.
How much can you borrow with a joint mortgage?
We would look at everyone’s income and commitments to calculate this for you. We explore income, commitments and dependents such as children.
If there are two, three or even four people on the mortgage, we would look at the whole picture together, assessing all those things to ascertain the answer for you.
What criteria are needed for a joint mortgage?
Each lender has different criteria, but the age of your parents is often important. The older they are, obviously the shorter the mortgage term will be.
Lenders have so much criteria surrounding their mortgage decisions, and it varies widely. We’re here to check your circumstances and fit those in with the most suitable deal for you.
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Who makes the payments on a joint mortgage? Is it split 50-50?
Anyone named on the mortgage can pay it. It could come out of a joint account or just one of the mortgagees’ accounts. The important thing is that you are all jointly and severally liable for the mortgage payments. You have to bear that in mind.
How do mortgage lenders assess affordability on a joint mortgage with parents?
It’s similar to a mortgage without parents. We’ll take into account all the incomes and commitments, dependents etc. We’ll check affordability with all the lenders that fit, in terms of the criteria for the joint mortgage.
It might be a couple going in together with parents, where we have to look for lenders that take three or four applicants. We’ve explored this in other episodes. We have to look at all those people as a whole.
Can you get a joint mortgage with other family members or friends?
Yes, you can get a mortgage with anyone, really, as long as they fit the criteria. If they have an income, with no major credit issues and that all fits with a lender, it could be any relative or friend.
What happens if only one person pays the mortgage?
The payment can just come out of one person’s account. You’re all jointly and severally liable for the mortgage, so in theory all of you should contribute towards it. Obviously, you’ve all been credit searched and are liable to make those mortgage payments.
If it’s coming out of one bank account and payments stop being made, that will affect everyone’s credit file in a massive way. It could stop them taking out any further credit in the near future.
What alternatives to a joint mortgage with parents are there?
You can get a joint mortgage with a partner, a friend or a family member. If you need that additional income from someone to borrow more, you’d be able to get other people involved other than parents if you need to.
What else do we need to know about a joint mortgage with parents?
We’ve covered the basics here. As always, if anyone has any questions or wants to contact us here at Brick2Brick, give us a shout, and I’m sure we can help.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS