Joint mortgages
If you’re buying property or remortgaging with friends, family or a partner, you’ll need a joint mortgage. This type of mortgage allows multiple people to borrow against a property together.
Learn more about the joint mortgage application process and whether it’s right for you.
Key takeaways
- A joint mortgage lets you share the responsibility for mortgage repayments.
- Joint mortgages are common for couples, but up to 4 people can apply.
- It’s possible to leave a joint mortgage, either by selling your portion of the house to the other person or selling the home and splitting the equity.
A joint mortgage is when two or more people take out a mortgage together to buy or remortgage a property. All parties are jointly responsible for the mortgage repayments.
Most joint mortgages are shared between two people, but some lenders will allow up to four people to buy together.
Anyone can take out a joint mortgage, whether you’re married, partners or friends.
They work the same as a regular mortgage:
- If you’re buying, you’ll pay a deposit and apply for a mortgage to cover the rest.
- If you’re remortgaging, you’ll just apply for the amount you need.
- The same products and rates are available on joint mortgages as sole mortgages.
With more than one person responsible for repayments, you might be able to borrow more than you could borrow on your own. This is because the lender will look at the combined income of all applicants.
Who can you have a joint mortgage with?
You can take out a joint mortgage to buy a home with:
- a partner
- up to three friends or relatives you plan to live with
- friends or family members who want to help you buy a property but not live with you
- a business partner who plans to invest in a property with you.
Ways you can split the shares
When you take out a joint mortgage, you’ll also need to decide how the shares are split between the co-owners of the property - referred to as tenants in property law.
You can split the shares in two different ways.
Joint tenants
Everyone has equal rights over the property. This is common for couples, and any profits are split equally if you sell the property.
Tenants in common
Everyone owns a different percentage share of the home. This is more common when buying with friends or family. A conveyancer will then draw up a deed of trust which records who owns what proportion, and how the money is split when the property’s sold.
How much could you borrow?
Lenders will consider how much you can afford together.
If it’s a joint mortgage with 2 applicants, you can use our mortgage calculator to work out how much you could borrow and what your monthly repayments might be. If there are 3 or more applicants, you’ll need to book an appointment with one of our Mortgage and Protection Advisors.
Things to consider
Here are some options you could consider when it comes to joint mortgage separation rights:
- Buy out your partner: If one person wants to stay in the home, they can take on the sole responsibility of the mortgage by buying out the other person. The person choosing to take on the mortgage will need to pass the lender’s affordability checks.
- Selling the home and splitting any equity: You could agree to sell the home, use the money to pay off the mortgage and keep the equity. This will then be split between the two of you. Look out for early repayment charges if you’re midway through your mortgage deal.
If no arrangements can be made for the mortgage, legal advice may be needed. MoneyHelper has more information about what happens to a mortgage following a separation.
Ready to apply?
It’s quick and easy to apply for an AIP online. It should take about 10 minutes.
You'll get an instant decision if you apply between 6am and 10pm Monday to Saturday, or 6am and 9pm Sunday. Otherwise, we'll give you a decision the next day.
-
A joint borrower sole proprietor mortgage is a mortgage that is entered into with parents. They’ll share the responsibility for the repayments, but only you will own the property. After the initial deal ends, if you can afford to, you could switch to a new mortgage deal in your name only.
Not all mortgage lenders offer this type of mortgage.
-
If you decide to take on a joint mortgage yourself, you’ll have to prove that you can afford the monthly repayments. If you are managing the repayments alone, it’s more common to sell the property and split any equity in the property between the 2 parties.
Speak to your mortgage lender or seek independent advice to get a joint mortgage transferred to one person.
-
You can get a joint mortgage with family, partners, or friends – depending on your situation. Some lenders will let you take out a joint mortgage with up to 3 other people.
If you decide to get a joint mortgage with friends, you are more likely to be tenants in common. This is when everyone owns a different % share of the home. Make sure you discuss exactly how it will work beforehand.
You’ll need to agree on:
- how much everyone will contribute
- how you’ll divide the equity of the property
- what you’ll do if 1 of you wants to leave the mortgage deal at any point.
-
Yes, you can add someone to an existing mortgage. This might happen if you already have a mortgage in your name and want to share it with someone else. They will also need to be listed on the property’s title documents so they are listed as joint owner.
Remember, the lender will need to run credit and income checks on each of you. If your application doesn’t meet the lender’s criteria, your mortgage might be declined.
-
Yes, you can change or remove a name on a mortgage. But the process usually varies between changing a name and removing one completely.
For example, it’s usually simpler if you’re updating a name due to marriage or divorce. Whereas adding or removing someone might be more complex, as it can impact who is responsible for the mortgage. If you’re removing someone from the mortgage, they will also need to be removed from the property’s title documents.
Read more about changing names on your mortgage account.
-
Yes, you can get a joint mortgage with only one source of household income. Both names can still be on the mortgage agreement and both will be legally liable for repayments. But lenders will only use the income provided to work out how much you can borrow.
-
Yes, you can get a joint mortgage that’s paid by one person. It’s important to understand the financial implications, though.
Even if the lender uses one salary to assess mortgage eligibility, you will both be responsible for repayments. So, if the person whose salary was on the application can no longer pay, the other named person will still be responsible. This means both credit scores and financial situations could be impacted.
You may also like
