Joint Mortgages & Buying a House Together | NatWest

 

 

 

Joint mortgages and buying a house together

If you’re thinking of buying a home, there’s a good chance you may be considering buying with someone else, like a friend, family member or partner.

A joint mortgage is one of the most common ways to buy a property together. Joint mortgages allow 2 (or sometimes more) people to take out a mortgage and purchase a house together.

Under a joint mortgage, all named individuals are liable for the mortgage – so if one person is unable to make their share of repayments, the other is liable to make up the shortfall. 

Joint mortgages and buying a house together

Couple looking at laptop together

Buying a home together

The decision of who to live with may come before or after the decision to buy a house with somebody else, but the important thing is that you take your time to carefully consider who to buy with. It must be with someone you trust and are happy to enter a long-term financial relationship with.

Most people choose to buy a house with just one other person, but it’s possible to register up to four individuals as legal co-owners of a property, meaning you can buy with up to three other friends or family members if you wish. 

Advantages of joint ownership

  • Buying a house with a friend, relative or partner can be a good way to get on the property ladder and can help you make the move quicker if you’re a first-time buyer.  
  • Buying with somebody else can put you in a better position from the get go as you’ll be able to combine your savings and have more money to put towards the deposit, but this isn’t the only benefit of buying a house together. You’ll also be able to split any other costs you encounter, including stamp duty and legal fees, as well as general house maintenance and household bills. 

Things to consider before you buy

  • Despite the benefits of buying together, there are always risks to be aware of before you enter any legal agreement. One of the biggest decisions you will need to make is whether to buy the property as Joint Tenants or Tenants in Common. The differences between these may seem minor, but could make a big difference to your rights years down the line so it's important to make sure you understand the options and what they could mean for you. 

 

  • Buying a property together is a big step so you should only do it with someone you trust. Before taking out a joint mortgage with anyone, make sure you know what will happen if one of you defaults on the loan. In many cases, you could both be responsible for any missed repayments – even if you’ve paid your own share on time. 

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