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OPTIONS AND TIPS FOR JOINT BUYERS – BY INDEPENDENT FINANCIAL ADVISOR, ANDREW LOCK AT LARKBRIDGE MORTGAGES

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01/09/2017

 

For many, getting on to the property ladder can seem like an impossible goal. This was confirmed by recent research by Aldermore Bank, which found that 65% of prospective first-time buyers believe owning their own home is currently unachievable. At the same time, a report by CBRE revealed that 61% of millennials expect to own their own home at some point in their lives. For many, the far-off dream could become a reality a lot sooner than they think, if the following options are considered.

OPTIONS AND TIPS FOR JOINT BUYERS – BY INDEPENDENT FINANCIAL ADVISOR, ANDREW LOCK AT LARKBRIDGE MORTGAGES

Joint mortgages

Though normally used by couples, joint mortgages can be taken out with anyone you wish to live with, whether that be friends or family members. If you combine your resources, the chances are that you will be offered a bigger mortgage. While they come with the same costs as standard mortgages, having a higher deposit overall should allow you to choose a mortgage with a lower interest rate. How you share your property’s equity can be decided between yourselves, but everyone named on the mortgage will be jointly liable and responsible for making repayments. With this in mind, it may be worth considering also getting Joint Mortgage Protection Insurance.

Help to Buy Equity Loan

With this scheme, the government lends prospective buyers up to 20% of the cost of your home, so that you only need a 5% deposit and a 75% mortgage to make up the rest. In London, the government will lend you up to 40%, meaning you would only need to find a 55% mortgage. The Help to Buy scheme really is a fantastic opportunity for first-time buyers to get a foothold on the property ladder. Help to Buy is only available through certain builders, including Countryside, on new-build properties.

Finally, here are a couple of my top tips for saving with someone else:

  • Open a joint savings account and make standing orders from your personal bank accounts each month. This makes joint saving much more straightforward, as you can see your total at a glance. It also makes it easier to track your joint monthly outgoings, which could help improve budgeting.
  • Open Help To Buy ISAs

For those eligible, these are great because the government will boost whatever money you put in by 25%, up to a maximum of £3,000. So for every £200 you save, you will receive a top up of £50 from the government. As the products are for individuals, those looking to buy with someone else will be at an advantage as you can open one each and get double the top up! This incentive can also be used in conjunction with other government supported schemes, including Shared Ownership and a Help to Buy Equity Loan.

For those interested in pursuing a joint mortgage or Help to Buy scheme, your next step is to speak with an independent mortgage advisor, who Countryside will be able to recommend.

Andrew Lock
Larkbridge


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About this blog

Here you’ll find property related blog articles from the team at Countryside as well as independent experts. Expect regular tips and advice on topics such as buying a new home, interior and landscape design, setting up home, mortgages and finance, plus articles on architecture, the property market, regeneration and more.

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