Joining forces with a good friend or family member can let you reduce the amount of deposit you have to find and share the cost of the mortgage. But sharing a home and being financially tied to another person is a big step. You need to be sure that the person you share the property with can keep up mortgage payments, and wants to stay in the property as long as you do.
We offer mortgages that let you buy a home with up to three other people but it’s important to be cautious – we recommend getting legal advice before you enter into any agreement to buy a house with another person.
If you own a property jointly, either as a married couple, partners or friends, you will need to choose one of two kinds of ownership.
Beneficial joint tenants
This is where you jointly own the home.
Tenants in common
You still jointly own the home, but you own a share of the home, which you can give away or sell.
Another way of getting a new home is through a Shared Ownership scheme, run by a Housing Association. The Association owns part of the property and you own the rest of it. You have a mortgage and make payments for the part of the home that’s yours, and you pay rent for the part that belongs to the Housing Association. Over time you can buy extra shares from the Housing Association to increase the proportion of the property you own.
There are a number of government-backed schemes to help people get onto, or move up, the property ladder. We take part in two government-backed schemes.
Help to Buy: equity loan
Help to Buy: equity loan scheme, you combine a mortgage and an equity loan to buy a brand new home in England. You combine a loan from the government and a mortgage to finance your new home. You put in a minimum 5% deposit and the government provides an equity loan of up to 20% of the purchase price. The equity loan is interest-free for 5 years.
The government equity loan can be repaid in full at any time or you can make partial repayments of a minimum of 10% of the value of your home at the time you make the payment. The equity loan must be paid off in full when you sell your home, or when the mortgage is paid off.
This type of mortgage is available from Santander for Intermediaries through your Independent Financial Adviser. It is not available through Santander branches or telephone. Independent Financial Advisers can be found at www.unbiased.co.uk.
Forces Help to Buy
This is a Ministry of Defence (MOD) scheme designed to help you if you are regular armed forces personnel. It can't be used with any other mortgage schemes.
The MOD will assess your eligibility and you could borrow up to 50% of your annual salary (up to a maximum of £25,000) to pay the deposit on your first home. The loan is interest-free and needs to be paid back to the MOD within 10 years through your salary.
The mortgage itself works in exactly the same way as a standard mortgage. You can choose from our full mortgage range and apply in your local Santander branch or over the telephone.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
All applications are subject to status and our leading criteria. This means that the ammount we will lend you will not depend on your individual circumstances, the type of property and the ammount you borrow. For example, we nay require a higher deposit if you are buying a flat or a new built property.