Written by: Danny Belton - Head of Lending

By combining incomes and deposits, you can potentially access a better property than you could afford alone. However, sharing a mortgage with friends comes with its own set of considerations.

What is a joint mortgage?

A joint mortgage is, in essence, a loan obtained for the purpose of buying a property by two or more persons. They become co-owners (or tenants in common) of the property and share responsibility for debt repayment. Combining salaries and borrowing power can help people qualify for a larger loan and a more attractive house, which can be advantageous.

Financial considerations

Credit checks

All applicants will undergo credit checks. A poor credit score from one person could affect the entire application.

Deposit and ownership shares

Decide upfront on the contribution percentages for both the deposit and ongoing mortgage payments. This will determine your ownership stake in the property.

If you’d like to learn more about ownership shares in joint mortgages, give our article on the topic a read!

Legal Considerations

Co-ownership agreement: Draw up a legally binding agreement outlining ownership rights, responsibilities for maintenance and bills, and exit strategies should someone want to sell their share.

Dispute resolution: Include a clear process for resolving disagreements about the property or finances.

Draw up a will: Get a will drawn up, ensuring your share of the property goes to your chosen beneficiary when you pass away.

Lifestyle considerations

Compatibility: Living with friends can be great, but ensure your lifestyles align. Discuss expectations for guests, noise levels, and cleanliness.

Future plans: What if someone wants to move out or start a family? Plan how you'll handle changes in circumstances.

Getting expert advice

Sharing a mortgage with friends can be a complex process. A qualified mortgage adviser can guide you through the financial aspects, including:

      • Assessing your combined income and outgoings to ensure you can comfortably afford the mortgage.

      • With access to a wider range of lenders, they can find a product that suits your circumstances and offers a competitive interest rate.

By seeking professional advice, you can increase your chances of a smooth and successful experience when buying a property with friends.

Can you do Shared Ownership with a friend?

It is possible, but you should talk to a mortgage adviser and legal professional about the finer details.

Can I add a friend to my mortgage?

Yes, this is possible. Read our article on the subject here.

Can you add someone to a mortgage without remortgaging?

Contact your mortgage adviser and lender to find out if this is possible, but most likely you will have to remortgage.

What is the minimum income for shared ownership?

Shared ownership doesn't have a one-size-fits-all income requirement. Instead, the affordability of each property depends on its value. This means the minimum income needed to rent and buy a share will vary based on the specific home you're interested in.

Is it a good idea to buy a property with a friend?

This is entirely dependent on your own personal circumstances. If you are both single and wouldn’t be able to afford a property alone, buying a property with a friend may be a solution.

Do you need a joint bank account for a joint mortgage?

A joint bank account is not legally required when getting a joint mortgage. However, if you’re a couple buying a home together, a joint bank account does make allocating funds simpler.

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

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