Joint ownership of a house

[MyNameIsUrl]

If two people want to each own part of a house, say a 60:40 split, then I understand this is called tenants in common. My question is, can one of those people have a mortgage in their sole name, or would the lender not allow such an arrangement?

[DrFfybes]

They can, but many lenders will be reluctant, both owners must consent, and you're restricting your borrowing options. You'll probably need to go through a broker to get a deal.

Is the mortgage for the property they're living in, or being raised for another purpose? That will also limit options.

Presumably there are reasons why the second person wouldn't be named on the application? Credit history is the usual one, but in that scenario having someone with that sort of history owning a chunk of a house with someone else might not be a good thing?

Paul

[Lootman]

If two people want to each own part of a house, say a 60:40 split, then I understand this is called tenants in common. My question is, can one of those people have a mortgage in their sole name, or would the lender not allow such an arrangement?

Everyone on the title has to be on the mortgage.

You could get around that with a side agreement, like a Declaration of Trust, such that an individual can share in the beneficial ownership of a property without being a legal owner.

Joint tenancy ownership has to be in equal ownership shares only, 50/50 in the case of a couple. So if you want an uneven split then you have to own as tenants in common.

[scrumpyjack]

Obviously the mortgage holder will need to be in a position that, if necessary, they can force a sale of the property in order to recover the debt.
So if someone else owns a share in the property that might prevent enforcement.