What is a joint mortgage?

A joint mortgage is where more than one person takes out a loan to purchase a property. The lender treats the borrowers collectively rather than individually. This means that the interest rate and repayment terms are agreed upon by all parties concerned. If you are interested in getting a joint mortgage with a sibling, you can contact a specialist mortgage broker.

How do joint mortgages work?

When you take out a joint mortgage, you make payments directly to the lender. Your friend(s) pay the same amount towards their portion of the mortgage. As a result, both people benefit from lower monthly repayments and a cheaper overall cost of borrowing. You can also read about joint ownership mortgage when one friend has a bad credit report.

Can I get a mortgage without my partner/friend?

Yes, you can. However, there are certain conditions that must be met before you can apply for a mortgage. These include:

• You have to be over 18 years old

• You cannot owe more than £2 million on any debt (including credit cards)

• You must have a good credit history

To understand further eligibility criteria as per your profile, you could speak to a mortgage adviser who can help you to find the best mortgage deal.

What happens if you have a joint mortgage and split up?

You need to remove your partner from the joint mortgage if you want to split your mortgage in half. This means that you will be responsible for paying off the house in full if he/she can’t pay back the loan. However, if you do this, you will also be responsible for any debts that were incurred before the split. You should get your money back when you’re paying off the mortgage, but you might need to sell the house if you own it as tenants in common.

What is the difference between a joint mortgage and a shared equity mortgage?

A shared equity mortgage is similar to a joint mortgage, except that the lender doesn’t treat the borrower’s contributions equally. Instead, they give each party 50% of the value of the property. In other words, you would only be liable for 25% of the total loan. When you split up, you will still be able to keep your share of the equity.

Read more about shared ownership on our blog.

How many friends can I buy with?

You can apply for a mortgage with 5-6 friends depending on certain circumstances. For Example, lenders that allow 4 people to borrow money are always careful about how much money they lend out. They always make sure that the income of 2 people is enough to cover the loan. The lender who allows 5 or 6 people to borrow money could also accept the mortgage application based on the income of 3 or 4 people with ease.  It’s always best to contact a mortgage broker before starting your application who can help you with the best mortgage deals as per the number of applicants.

Can I get a mortgage with three applicants?

Mortgage lenders are very strict about how many people can sign up for a loan. However, some lenders are flexible and would be happy to approve three or four applicants. Not all lenders require all applicants to provide proof of income. Some may ask for one statement out of these-

  • Accounts
  • Tax Returns
  • Bank Statements

The most important thing to remember is that you should always check whether you qualify for a particular type of mortgage. It is possible to get a home loan even if you don’t have a job yet. However, you could end up having to pay higher interest rates because of your lack of employment history. If you do decide to go ahead with a mortgage application, you should try to get pre-approval first so that you know exactly what you can afford.

If you are also interested in a shared ownership mortgage, don’t forget to read our article on our website blog.

What happens if one friend won’t able to pay the monthly mortgage payment?

In this case, the lender has two options: either let the person stay in the house until the loan is paid in full, or repossess the house. The mortgage lender usually wants to avoid repossession, so he will offer the borrower a new loan at a lower mortgage rate. If the borrower refuses to take the new loan, the lender will repossess the house instead.