How do Joint mortgages work?

A joint mortgage does what it says on the tin: it is a mortgage where more than two or more people share the debt accrued by borrowing in a mortgage, so they are jointly liable for repaying that debt.

Who can I get a joint mortgage with?

A joint mortgage can take many forms:

• you could be buying property with your partner or spouse who will live in the property with you
• with a group of people (such as your siblings) to purchase a buy to let property
• You could be buying as a group in order to live
• You could be buying an investment property as a group

The mortgage you will take out in order to buy this property will name all of the involved individuals, so that you will share the debt: this means that everyone named on the mortgage will be responsible for paying it back. But you can obviously work out between yourselves how you would like to divide up repayments.

How much can I borrow with a joint mortgage?

The amount you can borrow for a mortgage is dictated by a variety of different factors. The main difference between a joint mortgage and single-person mortgage, is that more than one persons financial situation will be taken into consideration.

The important things that a mortgage lender will look at when examining your mortgage application:

• your loan to value
• your affordability
• your credit score

Other important factors in a mortgage application regarding how much you can borrow is how much equity you might have in any existing properties you own, your employment situation, and the cost of the property you are looking to purchase.

What is meant by “joint tenants” and “tenants in common”?

These are two different definitions of a type of ownership of a property by a mortgage. If you are buying with a long-term partner, such as a spouse or civil partner, then you will likely be classified as a “joint tenant”.

This gives each borrower an equal right to the property, an equal share in any profits from the sale of the home, and the right to inherit the other half of the property in the event of the death of their partner.

However, you would fall into the category of “tenants in common” if your situation is a bit different. This might better suit friends, siblings or family members buying a home together.

This is different to joint tenants as: you are able to own different amounts of shares in the property (rather than a pure 50/50 split), will not inherit the property automatically in the event of a death of one owner and through this means, you are able to leave your share in the home to who you wish in your will.

Are they more expensive?

No, a joint mortgage product is not more expensive than a single mortgage product.

What will decide how expensive your mortgage is (or isn’t) will be the amount you want to borrow, the cost of the property you are buying and all the other factors listed in the previous section.

What about credit score?

Your credit score, and the score(s) of those you are taking the mortgage out with will all be considered by a lender when it comes to making the decision of whether or not you are eligible for a mortgage.

Where can I get a joint mortgage?

The vast majority of mortgage providers offer options to have joint mortgage products. It’s a very common practice – for example, the majority of couples who own a home will have a joint mortgage product and will jointly-own their home.  

We have access to a wide variety of mortgage providers and packages, including those which are not available on the high street.

Are you looking to get a joint mortgage? 

Our experienced team of mortgage brokers are on hand to help. Get in touch. 

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