More than 2 people applying for a mortgage

The issue here is how any of them exit the deal if they want to

The other fact is the the bank will most lightly want joint and several g/tees so you daughter is exposed for the 100% loan for 25 of the asset.

Since the polygamy referendum didn't pass, it can never be a family home so bank can foreclose

These situations rarely go well. When ppl start to get paired off with significant others the whole game changes.

sounds like a disaster waiting to happen

I assume that the 4 of them are single. What happens if 1 gets a partner and moves them in, or wants to move out, but a place with their partner.

Who gets the bigger room?

This agreement is great on paper until you realise that there are humans involved. Then partners get moved in. You always get a tight wad who is slow with bills and eats everyone elses food. There is the guy who jas girls around every weekend. Then there is the exit strategy where everyone gets screwed.

If your daughter wants to keep her friends come up with a better strategy.

no-one knows. In 2007 most said prices would go up and we all know what happened.

In real terms prices are still much lower than the 2007 peak.

Wages are increasing and interest rates are about to start falling a little - though in fairness to Irish banks (never thought I say that), they have not increased rates much and therefore rates will not fall dramatically. Probably safe to assume 3%-3.5% long them rates. In money terms €450 per €100,000 borrowed over 30 years.

Back in the early 90's my mortgage for a bog standard 3 bed semi in Ballinteer was just over £700 on a 90% mortgage (about €900) and a really good salary was £25,000 with high rate tax starting at under £15,000, the net salary was just over £17,000. That house sells at €600k today. If I took the same mortgage out at today's rates it would cost €2500 a month. The 25k salary is circa 100k today (65k after tax).

So in the early 90's about 55% of net salary was going to the mortgage (I rented two of the rooms out)

If I were to buy the same house today and had same job and same level, the mortgage payments would be 45% of the net salary.

So in a way, house ownership costs are similar to the early 90's

Odd attitude.

Show me how to drive my car off a cliff but don’t tell me driving off a cliff is a bad thing

not smart enough to have decently paid employment to fund one’s own borrowing

Reached agreements doesn't matter. People change, circumstances change. I have seen many took out mortgages with their partners and ended up in tears homeless.

Also it's a huge risk for bank. There is no mortgage alteration and there will be potentially 3 remortgaging here which is time consuming and expensive. Can they not rent together?

See I don't agree they're smart cookies at all. I think this is very dumb to be honest. They may have found a way to get mortgage approval but they'll lose any benefits now and in the future for first time buyers. Doesn't make them smart.

I could easily find a way to borrow money from banks for anything I want really doesn't make it smart to do so.

I assume they're banking on house prices continuing to rise and gaining equity, this is not guaranteed and it's very like the old 'get on the ladder' ideals from years ago. Expensive areas are likely to have higher fall too.

I very much doubt they have reached an agreement that will work in practice when the time comes unless they are all in a position and desire to sell the house and buy their own at the exact same time. No matter how much they think they'll agree now.

When I hear something like "smart cookies", it sets off all sorts of alarm bells. A mortgage is a legally binding contract, and it should be taken extremely seriously. Indeed, the word literally means "death pledge".

Personally, I would not enter into a mortgage with three friends. Maybe your daughter does have all of this figured out, but as may be adduced by the reactions above in this thread, many other seem to believe it to be a bad idea.

By "dragging it down", do you mean people are offering reasons as to why you should be cautious?

What's the issue with telling us all the details as to how this really really smart plan works?

Sounds like you're having us all on.

I had a read back through your posts and there are no hits beyond four people going in on a mortgage together.

Honestly I've seen some lovely huge properties where I've thought 'hmmm if myself and a couple of mates combined out resources we could live in a mansion'. Was always just a 'what if' though, I'm definitely best left to my own house. Would probably end up burning the place down and killing everyone after a few years haha.

Well, once the deal is done, can you report back and tell us how it all worked? I'm more just intrigued really! Never thought a bank would go for this.

But it hasn't worked, and won't know if it will work until one of them changes their mind.

I was smart enough to buy a house on my own in 2010, can't imagine my circle of friends having a financial interest in it or having to buy them out or move out myself. Or living with them. Life changed for me very shortly afterwards and I was free to make all my own decisions then.

Even a non married couple doing this brings up a lot of issues like above. Never mind if no kids involved but four friends is a receipt for disaster eventually