All you need to know about joint mortgages

December 13, 2017 by Brendan

Advice & Tips

Although a joint mortgage is most commonly taken out by a couple, it is also possible to have a joint mortgage with a friend, family member or even a group as an investment. They are usually taken out by two people, but up to four buyers may be permitted by some lenders.

A joint mortgage between borrowers who have regular income will mean that you can borrow more money than buying alone, although both parties will undergo affordability checks. If you are both saving towards a deposit, you are likely to save more, reducing the Loan to Value and giving you access to lower rate mortgage deals.

Both parties of a joint mortgage are responsible for the payments, and if one person were to fail to make a payment, the other party would be pursued for payment. If you want equal rights in the property, consider a mortgage as joint tenants. This means that if one person should die, the other will inherit their share of the home. Profits upon sale of the home will be split equally.

If you buy a property as tenants in common, you will all own your own share of the property. You are entitled to sell your own share and can bequeath it to someone else in your will. You can split ownership of the property in shares of any percentage, as decided among yourselves.

As with all mortgage types, there are pros and cons to be considered, but mortgage advisors learn about them when attending CeMAP training courses, so are able to help you decide if an option is most suitable for you.