Buying with Friends
First Time Buyers |
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Can you buy a mortgage with your friends - yes you can but there are a number of things you should carefully consider before doing so.
You will each be responsible for all of the mortgage. Should someone not pay their share then the other owners must pick up the tab or risk having their credit history tarnished.
Consider what would happen if you were ill, lost your job or died - the other parties to the mortgage will rely on your contribution to the mortgage payment. An insurance policy can protect you in either of these situations.
Consider owning the property as tenants in common. This way you will each own a physical share of the property. Should either of you die the remaining parties to the mortgage will not automatically inherit your share, instead it will go to your family. Of course, they should be prepared to pay your share of the mortgage unless a life assurance policy has settled it.