Joint Mortgages

If you are looking to get a foot on the property ladder, combining your income with that of a partner or friend could be an option for securing a larger mortgage than would be possible on your own.

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How do joint ownership mortgages work?

Whether you're planning to buy a house with your partner, or with a friend or group of friends, it's important to decide what type of legal ownership structure is best for you.  When you buy a house with someone else there are two routes you can take. You can either opt to become joint tenants or tenants in common.

Joint tenancy

Joint tenancy means that each of you owns half the property - if there are more than two of you, you will each own an equal share of the mortgage. Legally speaking, you are considered to be a single owner and therefore joint tenancy is usually chosen by people in relationships, such as those who are cohabiting, married or in a civil partnership.

If one of you dies, the property (and the outstanding mortgage debt) will automatically pass to the remaining owner. Therefore it can be a good idea to take out insurance to ensure that the mortgage will be paid off in the event of one partner dying.

Tenancy in common

Unlike a joint tenancy, owners under tenancy in common are not considered to be one single owner – this makes them the more common joint mortgage option for buyers who are not in a relationship, such as a group of friends buying together. There are two key differences from a joint tenancy – firstly, a tenancy in common means that if one of you dies, the property will not automatically pass to the surviving owner or owners, but instead will pass to whoever you’ve named in your will. Secondly, a tenancy in common means that you can each own a different share of the property, rather than an automatic half-and-half division of ownership.

Things to consider when taking out a joint mortgage

Though a joint mortgage can be a great way to buy a property with a loved one or friend, there are things to consider before you decide to make such a significant financial commitment.

• Up to four people can have joint ownership of a property. All joint owners are protected in certain ways – for example, they cannot be forced to leave, sell the property, or take out additional loans on the property without their agreement (or a court order).

• If you are not married or in a civil partnership, but are buying with an unmarried partner or friend, you may need to draw up a cohabitation agreement which formally sets out the financial arrangements and obligations of your joint mortgage. It’s also worth making sure both or all your names are on the mortgage deeds so that if disputes happen down the line, you will all have an equal claim on the property.

• In any kind of joint mortgage, all owners are equally responsible for making the full monthly mortgage repayment and if one of you falls behind, the remaining owners will be chased for the late payment. If one person misses mortgage payments, this can affect the credit rating of all named owners.

• If you buy a property with a partner, bear in mind that you will both be equally liable for meeting repayments even if you separate or divorce, and even if one of you is no longer living at the property.

• If you are buying with friends, it can make sense for all parties to get independent legal advice and draw up an agreement relating to important ownership issues such as selling the property or splitting any profits made from the sale.

If you are unsure about what mortgage product is suitable for you, we suggest you speak to an independent mortgage adviser - see below for our enquiry form.

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Our Mortgage Service

Special features of what we offer include:

• Get the best joint mortgage deals in the UK

• Whole of market service - we work with most UK lenders

• Access to leading market mortgage rates

• Access to exclusive loan deals not available on high street

• Fast turnaround - speak to us today if you need to move quickly

• We have lenders who will take into account previous defaults and missed payments 

• Looking to raise additional finance on top of your existing mortgage or buy to let mortgage? - we have access to a range of finance solutions

To investigate your joint mortgage options call our mortgage team on 0117 403 4474 or fill in our call back form.