What is a joint mortgage and how does one work?
Reading time 4 minutes
At a glance:
A joint mortgage is when two or more people can borrow together to buy a home.
Both people who take out the mortgage are responsible for the monthly repayments.
How much you can borrow from a lender is influenced by your joint income and outgoings.
How does a joint mortgage work?
Applying for a joint mortgage
A joint mortgage application works in a similar way to getting a mortgage on your own, with a few key differences:
Start with a Decision in Principle (DIP) - See how much you could borrow with a Decision in Principle, it won't affect your credit score as it only uses a soft credit check.
Income checks – A lender will look at the combined income and regular monthly outgoings of both applicants as part of the DIP. A lender will use this to decide how much it could potentially lend.
Find a home and apply – Once you’ve had an offer accepted on a home, everyone applying for the joint mortgage fills in the same application.
Financial checks – Your lender will perform a credit check on both of you. If you’re borrowing with someone who has a poor credit history, this could affect how likely you are to be accepted for a mortgage.
Joint tenancy vs tenants in common
If you’re buying a home with someone else, there are two ways you can own it together – joint tenancy or tenants in common.
Joint tenancy - You both own the home together, this means the property automatically goes to the other owner if one of you dies.
Tenants in common - You own separate shares of the home, this lets you leave your share to someone else in your will if you die.
What to think about when applying for a joint mortgage
Check what you can afford - Find out how much you could borrow with our borrowing calculator, and estimate your monthly payments with our repayment calculator. Use the combined income and outgoings of you and the person you want to apply with.
Get all borrowers registered - Make sure everyone applying for the joint mortgage is on the electoral register, this can improve your credit file if you're not already registered.
Agree how you’ll share costs - Decide early on how you’ll split the mortgage costs and other expenses, just so everyone’s on the same page.
Think about your credit history - Once you link your finances, your credit profiles become connected. So it's important to buy a property with someone you trust.
What is a joint borrower sole proprietor mortgage?
A joint borrower, sole proprietor mortgage (JBSP) also known as a booster mortgage, lets you apply with another person, often a family member, to increase how much you can borrow.
You’ll both be named on the mortgage and legally responsible for repayments, but only one person will legally own the property.
The content on this page is for reference. It is not financial advice. For help with money issues, try MoneyHelper.
