Joint Mortgages

If you’re thinking about getting a mortgage with someone else, whether that’s your partner, a mate, or your mum, we’ll explain what joint mortgages are, how they work, who can get one, and what happens if life throws a curveball (like a breakup or bereavement). 

What Is a Joint Mortgage?

A joint mortgage is when you buy a home with someone else, and you’re both (or all) named on the mortgage and the property. It means you share responsibility for the repayments and the risk. 

You can usually have up to four people on a joint mortgage. The lender will look at all your incomes, outgoings, and credit scores before deciding how much you can borrow. 

The biggest benefit of a joint mortgage is that your combined incomes are taken into account, which means you can usually borrow more than if you applied on your own. It’s a popular option for couples, families buying together, or even friends trying to get on the property ladder.

One thing to be mindful of: You’re all jointly and individually responsible for the whole mortgage. So if one person can’t pay, the rest must make up the shortfall. And if you fall behind on repayments, it affects everyone’s credit scores.

Who Can Have a Joint Mortgage?

It doesn’t matter if you’re married, living together, related, or not even living in the house; you can still apply for a joint mortgage as long as you all meet the lender’s criteria.

Here’s who you could apply with:

• Your partner or spouse

• A parent or relative

• A friend (or more than one)

• A business partner (for buy-to-let or investment properties)

The key thing is trust. You’re tying your finances together, so make sure you’re all on the same page about how the mortgage will be paid and what happens if one of you wants out.

Tenants in Common Vs. Joint Tenancy

If you're buying a property with someone else, you'll need to decide how you want to legally own it. There are two main ways to do this: joint tenants or tenants in common.

Joint Tenancy Means:

• You both own the whole property equally

• If one of you dies, the property automatically goes to the other

• It's usually the default option for married or long-term couples

Tenants in Common Means:

• You each own a specific share (it doesn’t have to be 50/50)

• Your share can be passed to someone else in your will

• It’s a popular choice for friends, family members, or couples with unequal contributions

If you’re not sure which option is best, speak to a solicitor who’ll be able to offer guidance on which option is best for your circumstances. It’s especially important if you’re buying with a friend or family member, just in case things change later down the line.

Can You Borrow More with a Joint Mortgage?

Yes, one of the biggest advantages of a joint mortgage is that you can usually borrow more because lenders consider all applicants’ incomes.

Here’s how it works:

• Most lenders use income multiples (typically 4 to 5 times your combined income) to calculate how much you can borrow.

• For example, if you earn £30,000 and your co-applicant earns £40,000, you might be able to borrow between £280,000 and £350,000, depending on the lender.

• If more than two people are applying, lenders usually only use the top two incomes across all applicants.

However, your ability to borrow will still depend on:

• Your credit scores

• Monthly outgoings and existing debts

• The deposit amount

• Employment types and stability

If one person has a low credit score or high debts, it could reduce how much you’re eligible to borrow, even with a joint application.

To see how this might work out for you, based on your combined annual income, take a look at our quick and easy-to-use affordability calculator below. 

Now you've got an idea of how much you can borrow, use our mortgage repayment calculator below to see what this amount could cost you each month and check if this fits with your budget.

What Are the Pros and Cons?

Joint mortgages come with some attractive benefits but also a few potential risks. It’s worth weighing up both before you apply. Here’s the good and the bad. 

Why They’re Great:

• Increased borrowing power due to combined incomes

• Shared responsibility for repayments and costs

• Easier to get on the property ladder, especially with a small deposit

• More flexibility in choosing who you buy with

What to Watch Out For:

• You're jointly liable for the entire mortgage, not just your share

• If one person stops paying, the others must make up the difference

• A partner's poor credit history can impact your application

• It can get legally complicated if the relationship breaks down or one person wants to sell

It's a good idea to have a legal agreement in place (like a declaration of trust), especially for non-couples, outlining what happens if someone wants to sell, move out, or stop paying.

What Happens if You Split Up?

If your relationship or living arrangement ends, you must decide what happens to the mortgage and property. Here are the main options:

1. Sell the property and split the proceeds: This is the simplest route, especially if you’re both ready to move on.

2. One person buys the other out: The remaining person will need to prove they can afford the mortgage as a sole applicant.

3. Keep the property and rent it out: You’ll still both be on the mortgage and responsible for any shortfalls or void periods.

Whichever option you choose, you’ll need to talk to your lender, and it’s also recommended to get legal advice. Emotions might run high, so a calm, clear plan will save stress (and money) later.

Can the Mortgage Be Transferred to One Person?

Yes, it’s possible, but it’s not always easy. You’ll need to apply for a transfer of equity and meet the lender’s affordability checks as a sole applicant.

The lender will want to be confident that you can manage the mortgage payments on your own. If you can’t, you won’t be approved, and the other person will have to remain on the mortgage, or the property will need to be sold.

You’ll also need to:

• Get the property revalued

• Pay legal fees and possibly stamp duty

• Get the departing person removed from the title deeds

What Happens if Someone Dies?

It depends on the ownership structure. 

• Joint tenants: The surviving owner automatically inherits the other’s share.

• Tenants in common: The deceased’s share goes to whoever’s named in their will, not automatically to the other owner.

Either way, the mortgage doesn’t disappear. The repayments still need to be made, and the lender may want the mortgage to be repaid or transferred into the surviving applicant’s name.

Life insurance can really help here and offer complete peace of mind. It’s not fun to think about, but it means the survivor isn’t left struggling financially or forced to sell the home.