Joint mortgages
Joint mortgages are more affordable than having one on your own because you have a combined income that is assessed allowing you to borrow more. Up to four people can share a mortgage and most lenders will consider the top two incomes when working out borrowing eligibility. If you have varying contributions to the deposit, the equity can be calculated to factor this in, if preferred. Even though the responsibility is split for the mortgage repayments, you should carefully consider if your personal circumstances are ready for a mortgage. Considering things like job security, debt issues, and friendship compatibility should help you find out whether you are ready to take the plunge.

 
Advantages of buying with friends

 Equity gain
You will be investing in yourself instead of paying rent to a landlord. If you and your friend have already experienced living together the transition should be even easier as you already understand how one another live. When you are ready to sell up, you will leave with financial gains too.

Share costs
All living costs will be shared, everything associated with the mortgage, as well as property maintenance and repairs that can often happen when least expecting it. This can provide added assurance for your property ownership.

Disadvantages of buying with friends

Impact on your financial record
Your credit score could be damaged if your friend misses a mortgage repayment. This is because mortgage repayments are a shared responsibility; if any of the group are unable to pay at any time, this can reflect badly on you by affecting your credit score. Be sure that you can trust the people you propose to share with. You could also end up having to pay their share to maintain the mortgage.

Impact on future loans
Having the option to buy a more expensive property is great, however it means that your full mortgage will be considered when trying to take out other credit loans. This could mean less favourable repayment plans for other investments.

If you are considering buying a property our friendly experienced team can give you all of the information you need and put you in touch with mortgage advisers to consider your options. Contact us to find out more.