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Joint mortgages

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Feb 21, 2023

Joint mortgages – How to get a mortgage with someone else and what lenders to use

Mortgages are the largest debt that most people have to pay. Many share this responsibility with their spouse, parents, or friends. They take out a joint mortgage with up to four people.

The good news for those considering getting a joint mortgage agreement is that our expert brokers have in-depth knowledge about these products and can help you reach your home ownership dreams.

We will discuss how to agree on a joint responsibility mortgage (assuming you are eligible) and other considerations.

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What is a joint mortgage, exactly?

A joint mortgage works the same as a single-person mortgage. The only difference is that it’s taken out jointly by more than one person. They let most people borrow more than they can on their own, joint mortgages are very popular.

To get a joint mortgage, both parties must pass a credit report and eligibility checks to be eligible for a joint mortgage. Joint mortgages work by going through the same process as if they were applying for a mortgage individually.

Each applicant must also be involved in the legal process and take joint responsibility. This includes meeting with solicitors and signing all documents and property deeds.

What is the main reason for a joint mortgage?

There are two ways to establish joint tenants or joint ownership. These depend on how you wish to divide the equity and what you want to do with your share.

You can decide how to split the mortgage repayments. It doesn’t matter how much property you have. However, you and the other party are jointly responsible for the mortgage and monthly repayments.

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Who could not have one?

Most couples taking out joint mortgages are married, in a civil relationship, or cohabiting. However, this is not the only option for joint mortgages.

Joint mortgages that allow for house sharing with friends are increasingly popular in areas where house prices seem unaffordable.

Another option is joint mortgages with relatives. Joint mortgages with other people are also available for investment purposes. With business partners to purchase premises or invest in buy-to-let properties.

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Three key steps to getting a joint mortgage

If you want a joint mortgage, remember some key points. Let’s take a closer look at each to help you get started.

Speak to a mortgage broker who specialises in this area

Although it can seem tempting to do it all yourself when searching for the best mortgage deal, it is usually a waste of time and a false economy.

It is possible to find the best mortgage deal yourself, a mortgage broker will have more experience and knowledge of specialist lenders. This will allow them to save you a lot of time and money. They will also help with your joint mortgage application and joint mortgage approval.

Many of the brokers we work with specialise in joint mortgages. They can help you navigate the details around different ownership structures and ensure that you include all income sources to maximize your borrowing limit.

Get in touch to arrange for a mortgage expert to reach you, start online below:

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Consider how you would like to see joint ownership.

This is an important question about joint mortgages. As we have discussed, tenants and joint tenants in common ownership models can have very different terms. It is important to decide what works best for your needs.

This is especially true if you are currently married. Money can be an emotive topic, and it can be difficult to talk about the future. However, it is important to be open and honest with your partner and to ensure a good relationship.

Examine your credit report

Joint mortgages can make it more difficult because lenders may look at credit reports to determine eligibility. To check for errors and to get a clear view of where you stand, copies of your credit reports should be obtained before you submit your application.

Credit history can include links to ex-partners or previous addresses. You must have a clear picture. Be honest about your situation to give your broker the best chance of finding the right lender for you.

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What is the maximum amount you can borrow?

Lenders use multiple incomes to determine how much they can borrow. In the case of joint mortgages, this is a multiplier of two or more incomes. High street lenders use 4 to HTML4.5 times as their standard income multiplier. However, some lenders will increase this to 5 or six times, depending on your situation.

Lenders will consider all financial obligations that could reduce your disposable income, such as loans, credit cards, or car hire purchase agreements, when assessing affordability.

A joint mortgage can be obtained even if one partner is employed. The other partner must earn enough to prove they can afford the mortgage. Lenders may consider income, which means that even if one partner is not working, they could still have income that can be used in affordability calculations.

We have created a joint mortgage calculator to estimate what you may be able to borrow. Enter your basic information, and we’ll give you an estimate of the amount of mortgage that you might be eligible for.

Calculations should only be used as a guide. Your mortgage broker can provide more precise estimates based on your income.

Criteria for eligibility

Lenders will assess your application using standard criteria for mortgage eligibility. Lenders can use these criteria to determine the risk level and interest rates they are willing to offer.

Are lenders willing to offer joint mortgages at lower rates?

Although joint mortgages have the same interest rates as single-person mortgages, other factors could affect your rate. A major benefit of buying a house with a partner is the ability to pool your savings and get a larger mortgage. The interest rate you can get will depend on how large your deposit is. Lenders will consider you a lower risk if you have a larger deposit.

A broker specialising in joint mortgages is the easiest way to ensure you get the best rate.

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What does bad credit mean for an application?

Credit problems in the past can impact your chances of getting a mortgage. This makes you riskier to lenders. You should not ignore credit problems or apply without thinking about them. Being declined will only worsen your credit and make it harder to get finance.

A joint mortgage can be problematic because even if one person has a strong credit history, the entire process will be affected by the other. Lenders will look at all aspects of the situation. A problem that occurred a long time ago, or was minor, will not have as much impact on the loan process as a recent or very serious default.

A broker specialising in mortgages for those with bad credit records might be a good choice if you’re concerned about your credit score. You’ll be able to access specialist lenders willing to lend to high-risk applicants. Although you might have to pay higher interest rates at first, once you have established a track record of regular repayments and have more equity in your home, you can remortgage later.

What happens to the mortgage loan if one applicant cannot make payments?

Although it is not something anyone wants to think about, it is important to consider the consequences of your joint mortgage. The mortgage arrangement will determine what happens. If you are joint tenants, ownership of the property will automatically pass to the other partner. The remaining partner will then be responsible for all repayments. However, if you are tenants in common, the deceased partner’s share will pass on to their heirs as outlined in their will. This could be your surviving partner, but it could also be your children, charity, or another beneficiary.

Leaving behind a mortgage joint with a spouse or partner can be hard. The guide to joint mortgages following a death provides more information.

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Is it possible to get a joint mortgage for a buy-to-let property?

Yes, absolutely. Many buy property with their family and friends to rent it out. Lenders are open to joint mortgages for small groups, sometimes up to two people.

It all comes down to affordability, eligibility and how much you can afford. You should be eligible for a joint mortgage as long as you have sufficient income to allow you to borrow the amount you need and that you satisfy all other credit and deposit requirements.

Match you with a specialist broker

You can now get matched up with a broker specialising in joint mortgage applications if you are ready to start. The broker will examine your financial situation and income sources. They can then help you choose the best form of joint ownership for you.

Your broker will be able to direct you to lenders who offer the best rates and terms for your situation. This will save you valuable time and help if you have bad credit issues like getting a joint mortgage with an IVA in place.

Call our team today or submit an enquiry, and we will put you in touch with the right broker for your case. There is no fee, and there are no obligations. Your credit score will not be affected.

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Get a joint mortgage FAQs

Can you have a joint and sole mortgage on the second property?

You can have both a joint and sole mortgage. This is similar to having a mortgage on your home and a buy/to-let mortgage on the second property you rent out. Affordability will be the deciding factor.

Lenders will consider your current mortgage payments when considering your application to get a second mortgage. You’ll need proof that you can afford both.

What does a joint bank account have to do with a mortgage application?

A joint account that links your finances can strengthen your mortgage application and improve your credit score if you and your partner both have excellent credit records. However, credit problems could negatively impact the credit score of one partner, even if they are getting a sole loan.

Start your application below now and get an approval within just 24 hours.

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