From: "John Bishop" 
Newsgroups: uk.finance
Subject: Re: Is there such a thing as a 3 Way mortgage
Date: Wed, 29 Sep 2004 13:21:13 +0100


"john boyle"  wrote in message
news:uMZiiJYVApWBFwbZ@johnboyle1.demon.co.uk...
> In message <4dcb4177.0409290152.124b327f@posting.google.com>, Alan van
> Wyk  writes
> >Hi.
> >I am looking to get a mortgage, which will be split between 3 people!
> >the idea is, 2 people each earn about the same amount of money, lets
> >call it x, and one person earns double that, so 2x!
> >
> >Ideally, the person who earns 2x would like to pay half the mortgage
> >and thus own half the house,
>
> No, it doesn't follow that paying half means you own half.
>
> > while the other 2 will each own a
> >quarter!
>
> Or that this follows.
>
> >
> >If this is not possible, we are happy to just go one thirs each!
>
> Or this.
> >
> >the question is, do any Mortgage lender do 3 Way mortgages and also,
> >how do the maximum amounts for such mortgages get calculated?
>
> Mortgagees will want you each to have joint & several liability which
> means you will each owe the mortgagee the whole amount. You can divide
> ownership by being tenants in common, but you cant divide the debt in
> the way you describe for a normal house purchase loan. A proper bank
> (not one of the pretend ones) have a mechanism which would suit what you
> want but they would want a far higher rate of interest and would need
> some persuading.
>
> Typically, a mortgagee would look at each income and agree an overall
> multiple, i.e. 3.5 times the larger plus each of the two smaller
> salaries. (Say)
> >
> >An ideas / advice will be very much appreciated!
>
> This is a recipe for a very very big fight between you in years to come.
> I assume you are all merely friends and are not a 'family' or a menage a
> trois, and borrowing jointly in these circs will almost certainly cause
> a problem when one wants to leave/sell, there are major repairs or one
> party doesnt cough up their share of the mortgage or finds a partner who
> moves in etc.,.
>
> It WILL end in tears so dont do it.
> -- 
> John Boyle

There is a mortgage to do this. I saw it on the tv news recently. Can't
remember which company, but I think it's one of the provincial building
societies. A broker should know which one. It's specifically designed to
help people buy togther and get on the ladder, so it may have different
terms from normal joint mortgages.

Just did a google search, it's the Coventry Building Society

John