Single Mortgage but joint deeds

[messina]

I already own a flat and have some savings i would like to invest.

My cousin is looking to get his first place but needs finacial help. He can get a mortgage for the property but only if i can invest my savings as half the deposit. I would also then pay half the mortgage.

Basically i would then rent out my half of the flat and he would pay for his half as his home.

We have been told that we may have to get a buy to let mortgage but it will be my cousins home so why does he have to pay the higher interest rate on a buy to let mortgage. We are very confused to the correct way of doing this, can anyone help?

[Didwot]

It is entirely up to the lenders what they are prepared to offer to you, and what really concerns them isthe value of their security and your ability to meet the installments. Obviously a property that is let may not be so well looked after, and someone who is dependent upon the rental income might be in difficulties to pay the mortgagge if the property is empty, or the rent unpaid. Yoiu sound a pretyy good borrower, and if you shop around you ought to be able to get a reasonable deal. I would certainly not suggest that you fail to tell the truth on your mortgage application, after all that is what Peter Mandleson did, and look what happened to him......er...nothing.