We're looking to buy a property with a friend who will live in it. Can we do half Buy To Let & half Residential?

Posted on 4 January 2014 by Angharad

Hello, my husband and I may be in a position to release some equity from our home and wish to invest it in a buy-to-let property. We have a friend who is currently looking to buy a home for the first time but needs someone to invest with him. Is it possible for us to take out a joint mortgage with him, with our half as a buy-to-let and his half a normal mortgage? (he plans to live in the property)

Unfortunately not, the mortgage needs to be either fully Buy to Let or fully Residential. If your friend wishes to live in the house it will need to be a fully residential mortgage, and the lender will look at your commitments and outgoings to see if you can afford those, as well as the new mortgage.

However, there may be other ways of finding a solution to what you're looking to acheive. As an independent, whole of market broker, we have access to the widest range of lenders and we may be able to find an alternative way to structure the loan that will still meet your needs.

The best thing to do would be to contact one of our mortgage experts on 0844 346 3708 and talking it through with them.

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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