Having a shared mortgage with someone can cause issues when you try to borrow funds in your own name.
This shared mortgage scenario is becoming more popular now as friends often pool resources to enable them to get into the property market.
This is because most lenders assume that you are personally liable for all debts that you are a borrower on and take this into account when working out your borrowing capacity. What makes it even worse is that, in the case of say an investment property, the same lenders then only take into account half the rent that is received but include repayments on the full amount of the debt.
The impact on your borrowing capacity is significant.
The good news is that there are a few lenders that will apportion your share of the loan rather than the full amount. Some of these do require evidence that the other party has the ability to cover their share of the repayments that are due but there are some that are happy if you provide proof that the debt is shared.
Keep this in mind. The next time that you hear someone complaining that they could not get a loan because they were involved with a loan with a third party, tell them that I am a Gold Coast Mortgage Broker that just might be able to help them.
