UK house prices have risen by over 50% in the past decade, pushing more people to consider buying property together.
In London alone, the average home now costs over £500,000, making joint purchases increasingly attractive.
Whether you’re planning to buy with family members, friends, or business partners, understanding how multiple-person mortgages work is essential for making the right choices.
How Many People Can Be On A Mortgage?
Most mortgage lenders allow between one and four people on a mortgage.
This limit exists partly because UK property deeds only have space for four names, but also because assessing more applicants increases complexity for lenders.
While four-person mortgages are possible, most high street lenders prefer to stick with two applicants, nice and simple. Some will accept three or four people, but often with specific requirements:
Several building societies accept up to four applicants but might only use the two highest incomes for affordability calculations. Others consider all incomes but restrict applications to family members.
Some lenders accept four applicants but require them all to live in the property.
Finding lenders who’ll consider more than two applicants generally requires help from a mortgage broker, as many of these lenders don’t deal directly with the public.
The ownership structure of the property affects both your current rights and future options, and there are two types.
Joint tenancy provides equal ownership and automatic inheritance rights between owners.
Tenants in common allows different ownership percentages, making it ideal when group members contribute unequally to the purchase.
This choice affects what happens if someone wants to sell their share later, or if a borrower dies.
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Who Can Apply Together?
Family groups typically enjoy the most options, with many mainstream lenders readily accepting parents buying with children or siblings purchasing together.
Friends buying together need stronger individual financial positions and often face higher deposit requirements, while business partners might need to provide additional security.
Each person named on the mortgage shares full responsibility for the payments, regardless of their ownership share. This means if one person stops paying, the others must cover the shortfall to avoid risking the property.
Read more: How do joint mortgages work?
How Much Can You Borrow?
Most lenders calculate affordability based on the two highest earners, typically offering around 4.5 times combined annual income. For example, if the top two earners make £50,000 and £45,000 annually, you might borrow up to £427,500.
Some lenders will consider all applicants’ incomes, potentially increasing your borrowing power. However, they often require higher deposits, typically starting at 15% rather than the standard 10%.
Deposit requirements generally mirror standard mortgages. Lenders verify the source of all funds, so maintain clear records of where deposit money comes from.
Read more: What size mortgage could I afford to borrow?
Finding the Right Lender
Finding a willing lender isn’t always straightforward.
Skipton Building Society accepts up to four applicants and considers everyone’s income for residents. Leeds Building Society reviews applications from up to four family members, while Metro Bank welcomes applications from close family members with multiple income sources.
NatWest doesn’t currently offer joint mortgages to more than two people.
Your options will also be affected by:
- Your age
- Your deposit
- Your location
- Property type
- Freehold or leasehold
- Borrowers with poor credit
Mortgage brokers prove invaluable for group purchases, understanding which lenders suit different combinations of buyers. They help structure applications for success and can access exclusive deals or schemes unavailable directly.
The Application Process
Successful mortgage applications require careful preparation.
Each applicant needs to provide comprehensive documentation, including proof of identity and address, three months of bank statements, and evidence of income through payslips or self-employment accounts.
Credit scores matter for everyone involved. One person’s poor credit history affects the whole application, so check everyone’s credit report before applying.
The application timeline typically runs 4-6 weeks, though complications with multiple applicants can extend this. Property valuation and legal work proceed as with standard mortgages, but expect additional complexity in ownership documentation.
Read more: Guide to applying for a mortgage
Success Strategies
Successful property ownership requires planning beyond getting a mortgage and you may want to seek legal advice prior to making any commitments.
Create a formal agreement covering payment responsibilities, maintenance costs, and procedures if someone wants to leave:
- Set up a joint account specifically for mortgage payments and maintenance costs. Each member contributes their share monthly, ensuring bills are paid on time.
- Arrange life insurance for each person’s share of the mortgage. This protects remaining owners if something happens to one member of the group.
- Establish clear procedures for property maintenance decisions and costs. Document how you’ll handle both routine maintenance and unexpected repairs.
- Include provisions for what happens if someone wants to sell their share or can’t make payments. Consider giving other owners first right of refusal on buying out departing members.
Making the Right Choice
Buying property with others is a significant financial and personal commitment that needs careful thought. Meeting with your potential co-buyers to discuss key issues early on helps prevent future problems.
Start by examining the financial aspects.
Look beyond the mortgage payments to consider insurance costs, maintenance funds, and a reserve for unexpected repairs. Each buyer should share their income details, monthly outgoings, and any planned changes to their financial situation.
Think about everyone’s future plans.
A five-year projection of each person’s likely situation can reveal potential issues. Someone planning to work abroad or start a family might affect the group’s ability to maintain mortgage payments.
Property management needs clear agreements. Decide how you’ll handle:
- Monthly payment collections
- Regular maintenance schedules
- Emergency repair decisions
- Improvements or renovations
- Insurance and utility arrangements
Most importantly, protect yourself legally.
Have a solicitor draw up a deed of trust agreement outlining ownership shares, responsibilities, and procedures if someone needs to leave the arrangement. This small upfront cost could save significant stress and money later.
Seek professional advice about whether a standard joint mortgage or an SPV company structure better suits your group. Each option has different tax implications and affects how easily ownership changes can be made in future.
Using a Company to Buy a House
Disclaimer: This section provide basic information, always seek advice.
Some people buying property together will choose to set up a Special Purpose Vehicle (SPV) company. This is an advanced strategy where a limited company is created specifically for buying and holding property.
How SPV Companies Work
An SPV company can have multiple shareholders, each owning different percentages of the company. For example, four people might set up an SPV with each holding 25% of the shares, or with different percentages reflecting their individual contributions.
Or 10 people could set up the SPV, each having a different level of ownership.
The company itself takes out the mortgage and owns the property.
Each person’s ownership rights come from their shareholding in the company rather than direct property ownership.
Getting a Mortgage Through an SPV
Many lenders offer mortgages to SPV companies, but these are mostly for investment properties. The company needs to be set up before applying for the mortgage.
Benefits of Using an SPV
SPV companies can offer several advantages for group ownership:
- Clear ownership structure through shareholding
- Potential tax benefits
- Easier to change ownership percentages
- Professional appearance when dealing with tenants
- Simpler to add or remove owners
- The company can own multiple properties
Buying property via a limited company can offer many benefits, including owning a property with more than 4 people. Before you jump in, have a chat with your accountant, solicitor and mortgage broker.
Read more: How to get a mortgage with a limited company
Getting Started
The first practical step is checking if a multi person mortgage suits your situation. An experienced mortgage broker can:
- Review everyone’s financial position and credit status
- Explain which lenders will consider your group
- Outline deposit requirements and borrowing potential
- Help structure the purchase to protect each person’s contribution
We can connect you with brokers who regularly arrange these joint mortgages. They understand the unique challenges of these applications and work with lenders who welcome multiple applicants.
For a free, no-obligation discussion about your options, call us on 0330 030 5050 or fill in our contact form.
Frequently Asked Questions
Yes, you can add people to your existing mortgage through a process called a “transfer of equity.” This requires your current lender’s approval and may involve remortgaging. Most lenders will reassess affordability for all applicants.
They can be removed through remortgaging or a transfer of equity. The remaining borrowers must prove they can afford the mortgage alone, or find a replacement borrower. All lenders will need to approve any changes.
Read more: Can a joint mortgage be transferred to one person?
Yes, and this is becoming more popular. If your parents have their own income then they can become part of the mortgage arrangement, enhancing what you can borrow.
Read more: Joint mortgage with parents
Yes, most lenders have upper age limits (typically 70-75) at the end of the mortgage term. However, some specialist lenders offer mortgages extending beyond these ages.
Read more: Borrowing into retirement
This depends on how the property ownership is structured. With joint tenancy, ownership passes to survivors. With tenants in common, the deceased’s share passes according to their will.
Potentially yes. Additional working borrowers will enhance the overall amount you can borrow.
Most lenders require at least 10% deposit for multiple person mortgages. Some may ask for 15-20%, especially if any applicants have lower credit scores or complex incomes.
