Frequently asked questions
The Waiting List
Why do you have a Waiting List?
We aren’t yet lending. We plan to go live later in 2019.
Once we’re live, we’ll be accepting applications from the Waiting List on a first-come-first-served basis.
Am I committing myself to anything by joining the Waiting List?
You are not committing to borrow from GroupLadder and we will not run a credit check on you.
When you sign up to the Waiting List you are putting yourself in the queue to apply for a GroupLadder mortgage.
We will send you updates on our progress and let you know when the time comes to submit an application (if you choose to).
Do we all have to live in the house together?
No. The property must be the primary residence of at least one member of your group, but there is no need for all of you to live there.
Is there any rule for how we split the deposit and repayments between us?
No, it’s 100% up to you.
How do we coordinate our mortgage repayments?
We’ll take payment from each of you individually, so there’s no need for you to have a shared bank account or transfer money to a primary borrower in the group.
You use GroupLadder’s Borrower App to control how much each of you contributes to the monthly payment. This can be changed at any time.
What happens if someone in the group can’t make a payment?
If one of you can’t pay, it’s up to the other members of the group to make up the shortfall. This means paying more yourself for a time if your co-owner is struggling financially.
When we decide how much to lend to you, we make sure that this is something that you’ll be able to afford comfortably.
How do you make the ownership split fair?
We track repayments by individual borrower and your personal contributions are reflected in the ownership split of the property. So the person in your group who pays more to the mortgage ends up owning more and vice versa.
This also means that if you ‘cover’ for someone who misses a payment, your share in the ownership of the property slightly increases and theirs slightly decreases.
Can one borrower sublet their share in the property?
Yes, this is up to you and can be addressed in your Housing Prenup.
Can we let out the property in due course?
Is it possible to be a borrower under the mortgage without being a named owner of the property?
Yes, and this can work well for some parents who want to help their children buy a house.
Do you charge a mortgage origination fee?
Can we sell the house and exit the mortgage whenever we want?
Yes, you can sell at any time.
After the second year, it will cost you nothing to exit. Until the end of Year 2, you will face an “Early Repayment Fee” if you sell that is in the range of 1.0-3.0% of the value of your mortgage. The reason that we charge this is that it costs us to issue you with your mortgage and if you repay it really quickly then we don’t get a chance to recoup our costs.
How much Stamp Duty will I pay?
First-time buyers benefit from stamp duty relief when buying a house worth up to £500,000. You pay no stamp duty on the first £300,000 of a property’s value and pay a reduced 5% rate on any value between £300,000 and £500,000. So for a £300,000 property you pay nothing and for a £500,000 property you pay £10,000.
Sadly there is no stamp duty relief if you buy a property worth more than £500,000.