Author Topic: Need your help with this!!  (Read 1507 times)

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Need your help with this!!
« on: September 23, 2016, 08:09:46 am »
I have started working now and want to move out of my parent's home and be independent.
I’m planning to move out with 2 of my best friends. We all work together, and want to live in the same house. Initially, we thought of renting a house, but we have been hearing a lot of issues people are facing with landlords lately. So,we dropped that plan, and we are now thinking of purchasing a home with the help of a mortgage.

We all are earning enough to pay for a mortgage, and we have decided that we will divide the amount equally in 3 parts, so  there would be no confusion and issues. But, the problem is that, none of us have ever taken a mortgage , and so we really have no idea about anything related. We did a small research online and we roughly calculated the monthly payments with the help of a mortgage calculator.
But, we don’t know if these rates are high, also, what type of mortgage scheme would suit us the best? Could anyone please suggest and help us. Thanks !!


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Re: Need your help with this!!
« Reply #1 on: September 23, 2016, 11:47:00 am »
The good thing is that you can go in with your friends on a mortgage as I believe you can have up to 4 people on an agreement.

As for mortgage rate this will depend on lots of factors including amount of deposit which will give you your LTV (loan to value ratio), you and your friends credit rating, disposable income (which banks take a lot of interest in).

My advice is go through a mortgage broker and explain your fairly unique situation, but with the Bank of England's cut to the base rate, I would suggest anything more than 2.5% interest rate on your mortgage deal and you are probably paying to much. But this will depend on your LTV ratio.

Two ways of doing mortgages - first one is getting a mortgage in principle in place for a set amount and go and find your home; second is find your home, make an offer, get it accepted then apply for a mortgage. First option is the better in my opinion and confirms to sellers you are serious about buying.

This is for standard buying of older homes, but as this is a new build home site there are a multitude of other considerations to consider with most important being who you buy from! Don't use housebuilder's preferred choice or recommended  solicitor!

This is clearly a overview about what you have asked, speak to a decent broker and do a lot of research about your specific situation. Just be aware when in shared ownership you need the agreement of all parties involved to do anything i.e sell the property. Probably will cost more in legal fees as well, with it not being a straight forward process.

Good luck

Tim Fee Snagging Inspector

New Home Expert

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Re: Need your help with this!!
« Reply #2 on: September 24, 2016, 07:32:33 am »
Sadly I suspect Hotstar is a link spammer. The link in the post (now deleted!) was for Northwoodmortgage and the calculator was in Dollars!
If you are genuine and want to calculate mortgage payments and source Mortgage Best Buys why not use this website!

Buying a home jointly with friends is risky, I would advise renting together for at least a year and see how you go and get on.
New Home Blog - New Home Expert is committed to providing help and advice for people having issues with their new homes and difficulties with house builders as well as helping potential buyers reduce the risk of possible problems if they do buy.


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Re: Need your help with this!!
« Reply #3 on: September 24, 2016, 10:43:46 am »
I agree with New Home Expert, rent for about a year first. You may get on ok at work and socially but once you have to share a bathroom and kitchen things may not be as rosy. Have you discussed what you would do if one of you decided after a few years they weren't happy or changed career and wanted to move away? As well as a contract for your house you may  also want to consider one to avoid one person wanting to walk away.