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What is a joint mortgage?
A quick summary
A joint mortgage is when you buy a property with other people and are jointly liable for the mortgage repayments.
Most joint mortgages are shared between two people, but some lenders will allow up to four people to buy together.
Learn more about the ownership types and how to apply.
How do joint mortgages work?
You can take out a joint mortgage whether you’re a first-time buyer or not.
They work the same as a regular mortgage. You’ll pay a deposit, then take out a mortgage on the remaining amount you need to buy your house.
With more than one person liable for the repayments, you may be able to borrow more than you could borrow on your own. This is because the lender will look at the combined income of both 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
You can split the shares in two different ways. Which ever way you decide, you’ll have to get all the borrowers to agree to update the mortgage. This includes making the decision to switch to a new mortgage deal.
Joint tenants
Everyone has equal rights over the property, common for most couples, and any profits would be 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.
Before you apply
How much could you borrow?
Lenders will consider how much you can afford between you when they decide how much to lend. Although you can take out a joint mortgage with up to four people, most lenders will only consider the highest two incomes to work out how much you can borrow.
Use a mortgage calculator to see how much you could borrow and what your monthly repayments could look like.
Use the budget calculator
The budget calculator is designed to help you manage your money.
It will show you where you can make extra savings each month, reduce any debts you may have, and help you prepare for the future.
Ready to apply?
It’s quick and easy to apply for an AIP online. It should take about 15 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.
Let’s look at the details
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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.
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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 two parties.
Speak to your mortgage lender or seek independent advice to get a joint mortgage transferred to one person.
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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 three 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 percentage 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 one of you wants to leave the mortgage deal at any point.
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