Share a mortgage with couples
Traditionally, couples used to be to get married before buying a property. However, with the number of marriages on the decline, couples often proceed straight to buying a property together. Often looking to move from rented accommodation, couples are using Share a Mortgage to safely buy a property together by themselves or with another couple.
Share a Mortgage provides a safe and affordable solution, where you can buy a property with other like-minded couples and share the costs of buying and living in a home.
With Share a Mortgage you'll be able stop paying rent to your landlord and get on the property ladder. You can search for and find other couples to share the costs of buying a home, the mortgage repayments, legal costs and living expenses. Sharing in this way can make buying a home much more affordable.
Save £1,000s in rent and start investing in your own home
Instead of paying £1,000s in rent and bills each month towards your landlord’s property, you could be investing this in your own home. Properties are regarded as among the safest investments and once you own your property you can benefit from any increase in the property’s value. The average property price in Greater London rose from £364,227 in Feb 2013 to £414,356 in Feb 2014, an increase of £50,129 in one year.
How does it work?
We provide the full homebuying service, from you joining and finding a Mortgage Buddy, to the day of completion when you collect your keys. Our team consists of mortgage advisers, solicitors, RICS surveyors and customer service agents who have all worked in the conveyancing sector. During the process you will be advised of the next steps to take with your Journey Tracker and if you ever need help along the way, you can speak to our Customer Support Team.
You can get Shared Ownership Protection, a legal document which includes house rules, how to leave, how much you own, and lots lots more. Shared Ownership Protection clearly states how you will live with your Mortgage Buddies so that there are no arguments, just happy living.
Read how Patrick & Natasha shared a mortgage and received £22,350 when they sold
Patrick & Natasha were dating and renting together for 4 years, paying £1,400 each month in rent and bills. They saved up a £10,850 deposit and their joint salary was £45,000 per year.
Fed up with paying their landlord's mortgage, Patrick & Natasha decided to try Share a Mortgage where they quickly found Simon & Natalie who were also renting. Simon & Natalie, also had £10,850 in deposit funds and a £40,000 per year joint salary. Their joint deposit totalled £21,700 and their joint salary was £45,000 for mortgage calculation purposes (taking the two highest earners only). They were approved for a £202,000 mortgage so they could buy a property worth £223,700.
After they viewed some properties in the area together, they found that they really got along and so decided to put in an offer for a 3-bedroom flat in Clapham Junction costing £217,000.
They agreed to share the property and bills according to how much each had paid towards the deposit, so Patrick & Natasha’s share was 50% (£10,850 / £21,700), the same as Simon & Natalie’s.
With a 10% deposit of £21,700 they arranged a Mortgage for the other 90% at a rate of 4.3% APR over 25 years, and the monthly payments were £1,068 (Natwest Bank – 2 Year Fixed Rate*). They added this to the bills (council tax, utilities, insurances), which were £450 per month; so in total it cost £1,518. This meant Patrick & Natasha paid £759 a month, or £380 each.
When the property was sold for £240,000** 2 years later, Patrick & Natasha received 50% of the rise in value because of their 50% share of the original deposit. They received £11,500 of the increase of £23,000 plus their original deposit of £10,850 - that meant after 2 years they received £22,350. This gave them the ability to buy a place of their own gave Patrick the chance to start thinking about getting down on one knee!
* Correct as of 12 April 2014
** Property values can go up or down. In the event of the property value decreasing, Jane would be liable to pay her share of the reduction when the property is sold.
