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Joint mortgages
Buying a home with a partner, friend or family member can make financial sense. Combining your incomes and deposits can boost your borrowing power, helping to make homeownership more achievable.
Looking for a joint mortgage? Tell us a bit about yourself and our broker partner, Mojo Mortgages, will compare thousands of deals to find the most suitable joint mortgage for you.
What is a joint mortgage?
A joint mortgage is when you and another person or people use the same mortgage to buy a property together. It can make buying a property more accessible as it allows you to combine incomes and share the cost of a deposit, which can increase the amount you're able to borrow.
All borrowers are legally responsible for the mortgage payments, whether you split them equally or not. That means that if one person doesn't pay, the other(s) become liable for the whole mortgage.
How do joint mortgages work?
A joint mortgage works in exactly the same way as any other mortgage. Essentially you are still borrowing money from a mortgage lender and repaying it over a set number of years - it’s only the property ownership and application that differ.
The application for a joint mortgage requires a lender to assess the eligibility and affordability of every applicant. So, if one applicant has particularly bad credit, it could negatively affect the outcome for the entire group.
To determine how much you'll be able to borrow with a joint mortgage, lenders typically use a multiple of the applicants' combined income or a multiple of the highest earner's income, plus the second applicant's income.
If you’re planning to take out a joint mortgage with more than two applicants, most lenders will only use the combined income of the two highest earning applicants.
Joint tenants versus tenants in common: what’s the difference?
When you buy a property with someone else, you'll need to decide how you'll legally own it together. The two main ways to do this are becoming 'joint tenants' or 'tenants in common'. Though they sound pretty similar, they have important differences.
The main one is the 'right of survivorship.' For joint tenants, if one owner dies, their share automatically passes to the surviving owner. For tenants in common, their share can be passed on to a chosen beneficiary in their will.
Here’s a quick breakdown of the main differences:
| Joint tenants | Tenants in common | |
|---|---|---|
| Ownership | You own the property equally, and are entitled to an equal share of any profits from the sale of it. | You can own distinct, separate shares - helpful if someone contributes more to the deposit or repayments than others. |
| Inheritance | Your share automatically transfers to the other owner(s) if you die. | You can leave your share to anyone you choose in your will. |
| Selling the property | You won't be able to sell or remortgage your share of the property separately. | You will be able to sell your share of the property separately. |
| Best for | Typically chosen by married couples or long-term partners. | Often suits friends, relatives or business partners. |
| Deed of Trust required? | Not generally required as ownership is legally equal by default. | A Deed of Trust is highly recommended to legally define each owner's share. |
What are the benefits and drawbacks of a joint mortgage?
Advantages of a joint mortgage
Helps you get onto the property ladder sooner. Pooling your resources could enable you to save for a deposit more quickly.
Increases your borrowing power. By combining two or more incomes, you can significantly increase the amount a lender is willing to offer. This could make buying a more expensive property possible.
Potentially strengthens your application. Lenders may see an application with multiple earners as more stable and less risky. It provides reassurance that mortgage repayments can be comfortably met.
Shared costs going forward. Other mortgage costs, such as arrangement fees, legal fees and stamp duty can also be shared.
Disadvantages of a joint mortgage
Financial responsibility for the debt. With any type of joint mortgage, you’re responsible for the whole mortgage if other borrowers can’t or won’t pay - this means inherent trust in your fellow owners is essential.
Creates a financial link. Taking out a joint mortgage creates a financial association between you and the other borrowers on your credit file, which means their credit behaviour could potentially impact you.
Legally complex. Joint mortgages can be slightly more complex. For example, if you have a tenants in common set up, you can leave your share of the property in your will, but this could be problematic if other owners don't want to sell the property once you pass away. Similarly, if you have a joint tenancy, you cannot leave your share of the property in your will as it passess automatically to the other surviving owner(s).
Who can take out a joint mortgage?
A joint mortgage is fairly flexible due to the different ways it can be set up, meaning it could be suitable for:
Partners in a relationship - whether married, cohabiting or in a civil partnership
Friends that want to live together
An older parent and their adult child(ren)
Siblings wanting to share a home
Parents helping their kids onto the property ladder (though a Joint Borrower Sole Proprietor mortgage may be most suitable)
Business partners who wish to invest in a buy-to-let property or portfolio together
Buying with friends is perhaps more common in areas like London, where people struggle to get on the property ladder as property prices are higher. It's not just friends either - some prospective homeowners look to buy with family members like siblings and cousins to enable them to buy a home sooner.”Jason McDonald, Mortgage Expert
How many people can be on a joint mortgage?
Most lenders will only accept two borrowers per joint mortgage. However, some are happy to consider three or four applicants. This is sometimes referred to as a multi-applicant mortgage.
Keep in mind that even if four applicants apply together, it’s highly likely that lenders will only consider the income of the two applicants with the highest income. So sharing a mortgage between more applicants won’t necessarily mean you can borrow more than with two.
Can a joint mortgage be paid by one person?
Yes, the joint mortgage payments could be made by one person. The lender doesn't really care which of you is paying, so long as the payments are made.
However, all applicants remain liable for the mortgage repayments, so if that one person decided to stop paying, it’s important that the remaining applicant(s) are able to afford to continue.
Options for leaving a joint mortgage
If circumstances change, you won't be able to simply remove your name from a joint mortgage. It is a formal legal process of changing the mortgage agreement, which your lender must approve.
Here are some of your options if you're thinking of leaving a joint mortgage:
Buy the other out (transfer of equity) - It’s possible for one person to take on the mortgage on their own. However, the person taking on responsibility for the mortgage would need to be able to meet the affordability criteria on their own and buy out the other applicants’ share(s) of the property's equity.
Sell your home – You can sell the property, pay off the mortgage from the proceeds and split any remaining profits (or debt if you're in negative equity).
Retain a stake in the property – One of you could transfer most of the ownership to the other, but still retain a small stake in it. They would therefore be entitled to money if the property was sold.
Pay off the mortgage – If you're close to paying off the mortgage, it may be worth continuing to share responsibility until it's paid off. You can then sell the home and split the proceeds.
Arrange a guarantor – If the person wishing to remain on the mortgage cannot meet the lender's affordability criteria alone, they may be able to add a guarantor.
The difference between a joint mortgage and a Joint Borrower Sole Proprietor (JBSP) mortgage
It’s perfectly possible to take out a standard joint mortgage with a parent or grandparent if you intend to live with them. But, remember, with a standard joint mortgage, all borrowers are also named as legal owners on the property's title deeds.
If you’re lucky enough to have a family member that just wants to help you get onto the property ladder, a JBSP mortgage could be the way to go. It allows one or more people to be jointly responsible for the mortgage payments, but only one person is named as the legal owner. This helps you meet the affordability criteria for the mortgage you need.
A JBSP mortgage can be a welcome alternative for many parents. With a JBSP, supporting applicants don’t need to provide any form of collateral - they simply use their income to aid affordability of the loan. It can also be beneficial for tax purposes, as it may avoid the higher rate of stamp duty that applies when buying an additional property.
Compare joint mortgages
Find the mortgage that's right for you. Tell our broker partners, Mojo Mortgages, about you, the person or people you're buying with and the kind of property you're looking for. They'll compare thousands of deals from across a wide range of lenders to recommend the most suitable mortgage option.
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Joint mortgage FAQs
Can you get a joint buy-to-let mortgage?
Yes, you can get a joint buy-to-let mortgage. Often partners, family members or business partners purchase an investment property together.
Can I change a joint tenancy into a tenancy in common?
Yes, you can. It's known as a severance of joint tenancy. You can apply to do this with or without the other owner's permission. A solicitor can also help with the application.
Learn more about the process on the gov.uk website.
Can we remortgage a joint mortgage?
Yes, you can remortgage a joint mortgage. However, all borrowers will need to agree on the decision to switch to a new deal.
If you own the property on a joint tenancy agreement, you must remortgage the whole value of the property at the same time.
How do we sell our house with a joint mortgage?
If both owners want to sell the property, then you would go about selling it as you would normally. Any profit would be split accordingly between the owners.
If one owner does not wish to sell, then they may wish to buy the other share of the property and take full responsibility for the mortgage.
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YOUR HOME/PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
The FCA does not regulate mortgages on commercial or investment buy-to-let properties.
Uswitch makes introductions to Mojo Mortgages to provide mortgage solutions.
Uswitch and Mojo Mortgages are part of the same group of companies. Uswitch Limited is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 312850. You can check this on the Financial Services Register by visiting the FCA website.
Uswitch Limited is registered in England and Wales (Company No 03612689) The Cooperage, 5 Copper Row, London SE1 2LH.
Mojo Mortgages is a trading style of Life's Great Limited which is registered in England and Wales (06246376). Mojo are authorised and regulated by the Financial Conduct Authority and are on the Financial Services Register (478215)
Mojo’s registered office is The Cooperage, 5 Copper Row, London, SE1 2LH. To contact Mojo by phone, please call 0333 123 0012.