Joint Mortgages

Who is this page for?

This page is for people looking to buy a home with one or more other people, or those looking to make changes to a joint mortgage.

In this article

Joint mortgages

  • You can buy a property with up to three other people. This is called a joint mortgage.
  • Most joint mortgages are shared between two people, but some lenders will allow up to four people to buy together.
  • You can take out a joint mortgage whether you are all first time buyers or not.

How do joint mortgages work?

Joint mortgages for residential properties work in the same way as a regular mortgage. You’ll pay a deposit, then take a mortgage on the remaining amount.

The people named on a joint mortgage can save for the deposit together and pay monthly repayments together. This can mean you’re able to borrow more than by yourself, as the lender will look at the combined income of both people.

You can also take out a joint mortgage to buy a home with:

  • A partner
  • Up to three other friends or relatives you plan to live with
  • Friends or family members who want to help you buy a property but will not live with you
  • A business partner who plans to invest in a property with you

If you want to update your mortgage you will have to get all the borrowers to agree. This includes making the decision to switch to a new mortgage deal.

If you buy a property with someone who is not a first time buyer, you will have to pay Stamp Duty.

There are two ways you can split the shares of your property with a joint mortgage:

Joint tenants

Joint tenants means that all the people who own the home have equal rights over it. This is common for couples who want to split ownership of the property.

The profits would be split among you all equally if you were to sell the property.

Tenants in common

Tenants in common means each person owns a different percentage share of the home. This is more common when buying with friends or family.

A solicitor will draw up a deed of trust. This is a legal document that show the percentage of the property you each own.

How much can you borrow with a joint mortgage?

When you take out a joint mortgage, you may able to borrow more than you would on your own. This is because lenders will look at how much you can afford between you when they decide how much to lend. It can also make saving for a deposit easier.

Although you can take out a joint mortgage with up to four people, most lenders will only consider the highest two incomes. They will use these figures to work out how much they are willing to lend you.

Before you start your application, use our mortgage calculator to see how much you could borrow and what your monthly repayments could look like.

What is a joint borrower sole proprietor mortgage?

A joint borrower sole proprietor mortgage is a mortgage that is entered into with your parents. They will share the responsibility for the repayments, but only you will own the property.

After the initial deal period, you might be able switch to a new deal in your name only, if you can afford to do so.

Not all mortgage lenders will offer this kind of mortgage.

Can you transfer a joint mortgage to one person?

If you decide to take on a joint mortgage yourself, you will have to prove that you can afford the monthly repayments solo. It’s also common to sell the property and split the equity between the two parties.

Speak to your mortgage lender or seek independent advice to get a joint mortgage transferred to one person.

Can you get a joint mortgage with friends?

You can get a joint mortgage with family, partners, or friends. Whichever best suits your situation. You can usually take out a mortgage with up to three other people.

If you decide to get a joint mortgage with friends, make sure you discuss exactly how it will work beforehand. You should decide:

  • How much everyone will contribute
  • How you will divide the equity of the home
  • What you will do if one of you wants to leave the deal at any point

This usually means deciding to go for a joint tenants or tenants in common style mortgage.

Before taking out a mortgage with someone else, you will need to make sure everyone is upfront about their finances:

  • Ask everyone to check their credit history as it could affect being offered a mortgage
  • If they have a bad credit score, you might be rejected, which could mean bad news for your own credit score
  • If one person doesn't pay their share of the mortgage, it is up to the other borrowers to cover it

The content on this page is for reference and does not constitute finance advice.

For impartial financial advice, we recommend government bodies like the Money Advice Service.

Related pages

Find out more about mortgages.

Moving home >

Selling a house >

Cost of moving home >

Buying your new house >

 

Calculators & tools

We have a range of mortgage calculators to help you:

  • Find out how much you could borrow from Lloyds Bank
  • See how much you could save if you make overpayments on your mortgage
  • Get an idea how a change to the Bank of England Base Rate could affect your monthly payments

Use our calculators and tools >

Need to speak with someone?

You can talk to us over the phone or use our mortgage video service from the comfort of your own home.

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Important legal information

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