Im looking to buy for the first time, with help from my brother, who is already a homeowner. We are wondering which option would be the best route, as I cant afford the property prices alone. (although I can easily afford to pay the mortgage repayments myself!) Looking for some help as Im rather clueless on this subject!!
If we went with a guarantor mortgage, we are a bit confused as to wether my brother will need to have paid at least 30% off his actual mortgage, or off the value of the property (he used the council right to buy scheme to buy his house, so does the discount he received from the council and the repayments he has made so far count towards the amount of the property value he now owns?). Can anyone explain how this works?
If we were to go for a joint mortgage we cant figure out how much of a deposit would usually be required, as a first time buyer myself it would be usually 10%, but as my brother would be applying for a second mortgage from what Ive read that requires at least a 25% deposit! Does anyone know what deposit would be required for us as joint applicants?
So there are a few variables here and you are highly likely to require formal advice.
This will certainly not be a case for every lender, although would expect there to be potential solutions from 15% deposit in the current climate.
Guarantor Mortgages are not as prevalent as in years gone by, but a joint mortgage could still be available.
Please be aware of Stamp Duty Land Tax, as if your Brother is naturally added to your mortgage & property deeds then you incur additional cost. Again an experienced broker can work through the detail here.
All the best