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Diana Rowe, an IT Consultant, was desperate to help her daughter and her daughter’s partner onto the property ladder.
However, there was one problem: the couple didn’t have the financial history to prove they could make the monthly mortgage repayments.
After a conversation with us, Diana realised joint-borrowing could be the answer she was looking for.
What is joint-borrowing on a mortgage?
She tells us why this not-so unusual mortgage alternative wasn’t as complicated as she first thought.
What type of property do Naomi and Lydia own?
The girls are the proud owners of a 3 bedroom Victorian terrace in Leicester.
What obstacles did Naomi and Lydia face while looking to purchase your property?
Both Naomi and Lydia faced a number of obstacles. The biggest being that neither had a UK ‘financial profile’, such as a credit history, as they both lived in China five years prior to purchasing a property. Unfortunately, it would have taken at least four years to build up the required documentation they needed, even though they had a good deposit ready to go.
What made you help with the home buying process?
It’s the most natural thing in the world to try and help your children. The girls had a good deposit, but on further research it seemed that several other lenders, banks and building societies were either unwilling to help or would do at a cost Naomi and Lydia couldn’t afford. This is why I stepped in.
How did you hear that becoming a joint-borrower was an option for you?
I had a chat with a mortgage adviser at Newbury Building Society to understand what I could do to help Naomi and Lydia get their foot onto the property ladder. I was told about joint-borrowing, the process involved and what it would mean for both me and the girls. I wanted to make sure the property would be legally seen as theirs (I’m not named on the deed). It’s reassuring that I am there should they have any difficulties.
Did you have any reservations about becoming a joint-borrower at first?
Newbury Building Society explained what being a joint-borrower meant and recommended I speak to a lawyer to clarify the legalities which I did, so no, I had no reservations.
What would you say to others looking to support a family member with their property purchase?
It really is very straightforward. Take legal advice by speaking to a solicitor, to best understand what it is likely to mean to you and to understand what your commitment is likely to be.
How did Newbury Building Society help you through the process?
As always, the Society was there to hold our hand and guide us throughout the process. They were willing to answer any questions I had and in some cases, help chase up other organisations to get things moving.
Why did you choose Newbury Building Society as your lender?
We chose Newbury Building Society for a variety of reasons. Firstly, I have been with the Society for a very long time and have always appreciated their honesty, helpfulness and the friendliness of the staff. Secondly, Naomi has had a savings account with the Society since she was 11 years old. She also always found the staff to be very customer-focussed, especially regarding money transfers when she was in China. No task is ever too big or too small for Newbury Building Society.
If you're looking to help a loved one step onto the property ladder, read our article 'Gifting cash isn't the only way you can boost a loved one's borrowing power' for further information.
*all figures and data correct as of November 2018
YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGANST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.