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What is joint mortgage?
A joint mortgage is a type of property loan that allows more than one person to borrow funds for property purchase (usually home) and share the repayment responsibility. Normally, the minimum number of joint mortgage borrowers is 2, and the maximum number is 4. It is a conventional mortgage type usually exploited by spouses or couples, but friends or relatives can also buy a property though joint mortgage. Shine Mortgages facilitates lucrative deals on the joint mortgage through the myriad of options available on the panel.
Are all the borrowers equally responsible for the mortgage payments?
No, a joint mortgage may or may not be an equal responsibility of all the included borrowers. It depends on the type of joint mortgage you apply for. According to the type, the percentage of repayment responsibility changes.
MORTGAGE REPAYMENT RESPONSIBILITY CHANGES ACCORDING TO THE JOINT MORTGAGE TYPE
Joint tenancy mortgage – equal share in ownership as well as in mortgage
In joint tenancy, all the included borrowers will own the equal share in the ownership of the property. This fact makes them equally liable towards the liability part too. If two persons have purchased the property with 50% each share, they will own the house equally. Name of all the borrowers appears on the deed. If one of the borrowers dies, the property will go under the ownership of the other borrower.
Tenants in common – not equal share but a certain percentage
This type of joint mortgage facilitates property buying to the borrowers with their desirable share in the ownership as well as in the mortgage. If three people are buying a property, one person may have a 60% share, and the other two may have 20% each. According to the limit of right on the property, the buyers are liable towards the mortgage in the parallel manner.
The instalments of a joint mortgage paid by one person can never be counted as the repayments of the other one. All have to pay their share, and in case of any failure, they will be individually responsible. However, just like joint tenancy, here also, name of all the borrowers get a place on the deed.
Joint borrower sole proprietor mortgage – partners in the mortgage but not in property ownership
It is a less popular version of mortgage but has a significant presence in the market. This type of borrowing allows many applicants to borrow funds to support the main applicant. They bear the responsibility of the repayments, but their names do not get mentioned on the deed. People usually explore this option when, as the family member, they want to support the big purchase of one of their family members. For instance – a son buying a house may get support from his parents, brothers, sisters or other relatives.
At WeLoan.us we suggest the most suitable joint borrower sole proprietor mortgage lenders. After the applicant selects one lender, we send the application to the concerned mortgage provider. When the actual process starts, we ensure the achievement of a lucrative deal through our efficient bargaining. A joint mortgage with the parents can also come in this category of sole proprietor mortgage, but only if they have no share in the ownership.
Can a joint mortgage be transferred to one person?
Yes, a joint mortgage can be transferred to one person, but it demands a complete process. Certain aspects present their unavoidable importance in this concern.
The transfer of a mortgage to one person is known as the transfer of equity.
Here are some essential facts about the joint mortgage transfer
- Usually, this alternative is used when a couple plans for separation.
- The other person needs to agree on taking the complete responsibility of the mortgage.
- The lender may not agree instantly because it may not find the repaying capacity of the existing applicant convincing.
- Also, it is vital to inform the lender because it needs to work again on the affordability of the existing borrower.
- Both the borrowers need to work righteously on their joint mortgage separation rights for a calm shift of obligation.
- Mortgage cannot be transferred without changing the deed.
My spouse is a non-UK national partner; can we get a joint mortgage?
The cases of joint mortgage with mixed nationality are not very simple, but at the same time, they are not impossible. Some several terms and conditions are necessary to get their due solution. You should know about the following situations that are sure to encounter you.
- You can apply for the nationality of your spouse but until you get the nationality getting a mortgage is a lengthy procedure. Sometimes rejection happens if the applicants fail to give sufficient proof of residency.
- Couples need three years of residency proof to prove the stability in the UK. It is an essential aspect of the authenticity of the applicant for the lender.
- The other partner (the one with the UK nationality) should have a verified address proof usually in the form of presence in the electoral roll
How Shine Mortgages can help you in case of mixed nationality
We have ways to help you in several ways that can be practised during such conditions. Our experience and expertise of 15 years should be able to offer a creative solution to your problem.
- We have lenders on our panel that offer joint mortgage for couples with mixed nationality on LTV of 70%.
- For those with tier 1 General visa, we can arrange funds with 90-95% LTV. Considerably functional repayment capacity is a must.
- We can suggest you the speedy and legal ways to get citizenship as we deal with such cases quite frequently.
What happens when you buy with an unequal deposit?
A joint mortgage with unequal deposit demands attention to the legal treatment of things. Most of the times, both the applicants do not seek any legal agreement to decide the share in the property according to the contribution of down payment. Due to this reason when any clashes arise later or they split-up, the one who gave the more significant part of the deposit fails to claim for a bigger percentage in the ownership. We, as a broker, always suggest our customers go for a legal agreement to keep things clear at any aspect of life. We can take care of all the necessary formalities required to ensure a smooth arrangement for such cases.
I am planning separation but have a joint mortgage, how can you help us?
We can help you by taking the procedure in due direction. We make you aware of the complete procedure and legal requirements to avoid any miscommunication. You can contact us round-the-clock for a joint mortgage separation advice online and also through friendly meetings whenever you want.
- We advise you on every aspect of post-divorce terms and conditions of a joint mortgage.
- Our efforts always remain focused in suggestion the best ways of handling joint mortgage while split-up
- We assist you in coordination with your solicitor to make necessary changes in your deed.
- Get necessary assistance on a joint mortgage due to split up and getting your name off from mortgage without much hassle.
- We take care of all the necessary documentation process to facilitate a speedy settlement with your partner.
My co-borrower is not making the repayment, what can be the remedies?
It is true that your co-borrower is solely responsible for his or her payments. However, if he stops paying, you will have to bear consequences such as - degrade in credit score, as you both are mutually connected in this financial commitment. You may fail to qualify for any other financial product such as credit card, personal etc. But there are some ways to help you.
Here are the most prominent solutions we can suggest -
- You should keep paying at least your part because the money world wants to see your commitment towards the obligation.
- Ask the co-borrower to sell his part of ownership to you. If he has earned any equity, you can pay it to him
- Sell the house/property to completely get rid of the chaos and buy a new one on maybe at a lower price that is suitable for you only
We frequently handle the cases of the joint mortgage in which one person is not paying the instalments. Our expert team can immediately provide you with a solution and can take you out from the stressful conditions in a short time.
Why choose Shine Mortgages
You should know why you may need us. There are several reasons that we would like to give you to build trust in us.
- One window platform for all sorts of solutions on a joint mortgage
- We have a vibrant panel of insurance companies to facilitate joint mortgage protection insurance
- Vast panel with numerous lenders to provide choice on interest rates
- We make mortgage deals predicable by suggestion the options under your repayment capacity
- All our lenders have speedy procedures to save your precious time.
- Advanced financial tools like a mortgage calculator, stamp duty calculator
Shine Mortgages is determined to bring you the maximum convenience on mortgage deals through its panel of lenders. Also, we give you enlightening advice that enhances your knowledge about the mortgage, and you can make confident decisions.24x7 you can reach to us, and we will ensure your reach to the required mortgage deal in a short time.