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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:
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.
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