Mortgage for jointly owned property
Discussion
Can anyone help me with the following (sorry if it seems a stupid question!):
Person A and Person B want to jointly purchase a £300k house. Person A has £150k cash and chooses to pay in full and have no mortgage. Person B has £15k and needs a £135k mortgage.
Now, can person B take out a mortgage independent of Person A? i.e Person A not liable for B's mortgage. Thus if B only has 10% to put down then the rates won't be too favourable?
Or, will any mortgage taken for the property be the legal responsibility of BOTH A and B (even if B is paying it in full)? What is more, the mortgage rate should be very favourable as the 60% of the value has been paid down already?
Many thanks in advance!
EDITED TO ADD: Property would be in Scotland.
Person A and Person B want to jointly purchase a £300k house. Person A has £150k cash and chooses to pay in full and have no mortgage. Person B has £15k and needs a £135k mortgage.
Now, can person B take out a mortgage independent of Person A? i.e Person A not liable for B's mortgage. Thus if B only has 10% to put down then the rates won't be too favourable?
Or, will any mortgage taken for the property be the legal responsibility of BOTH A and B (even if B is paying it in full)? What is more, the mortgage rate should be very favourable as the 60% of the value has been paid down already?
Many thanks in advance!
EDITED TO ADD: Property would be in Scotland.
Edited by HonestIago on Monday 4th November 14:32
Sarnie said:
You can't secure a mortgage against a property you do not fully own. If you defaulted, how would the lender repossess your half of the house?
Thanks, I daresay that answers my question. A mortgage would have to be joint even if in name only BUT the borrowing rate would be pretty good? Gassing Station | Finance | Top of Page | What's New | My Stuff