Mortgage Possibilities - Individual Offset Accounts / Tenants in Commom

Donaldhump on 12/04/2017 - 16:01

Hello People

I am looking for anyone who has or knows of banks which do mortgages that have individual offset accounts. ie 2 people, a and b buy the house, but a and b have separate offset accounts, that work together.

I am also interested in a tenants in common mortgage, with a 1% / 99% split for tax purposes. Would this mortgage set up automatically come with individual offset accounts as well, if so this would be great.

I remember an old friend bought a house 50/50 with his brother and I think they had separate accounts I believe.

thanks

Financial

Comments

  • MeesusEff on 12/04/2017 - 17:52

    Hmm interesting! My partner and I bought a house together (but my parents are footing my share) so 2 offset accounts would be very ideal to keep track!

  • loulou1 on 12/04/2017 - 18:32

    You could each get your own loans and own offset accounts, however you would need to be guarantor for each other due to the property having both names.

    • garetz on 12/04/2017 - 19:04
      -1

      You do not need to be a guarantor for each other, as there is a 50% stake ownership, under the banks rules it is implied, if one person defaults on the loan, then the banks can still repossess the property, even if the other person still can make payments. That's the risk you take splitting ownership with someone else.

      For example, you have 2 people buying a property, brothers, 50% stake each, if one person goes bankrupt, then the other person is liable to the mortgage up to their 50% stake as well. So if lets say the property market crashed, and there is bankruptcy involved by 1 party, the the other party loses their share as well.

      • loulou1 on 12/04/2017 - 19:35

        Does it make a difference whether it is tenants in common or joint tenants? What you are saying doesn't sound right.

      • djkelly69 on 12/04/2017 - 21:05

        Garetz that is not correct for all cases. Tenants in common can separately mortgage their shares in a property (although almost never seen in practice), in which case they are not liable for each other's mortgage and the bank could only sell the share of the defaulting party.

  • garetz on 12/04/2017 - 19:07

    Not all banks provide offsets, and of those that do, not many provide 100% offset. If you buy a property with another person, the mortgage account will be in both names. So it would stand to reason, you would each have your own login, and different accounts you can access, which are linked. More than likely you would also each have an offset, which are linked. Talk to your bank.

  • Apothecary on 13/04/2017 - 09:45

    Me Bank offers unlimited 100% offset accounts.

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