Updated: December 17, 2021

Mortgages for 2, 3 or 4 People

Trying to pool together for a multi person mortgage? Whether you're looking for a 3 person mortgage, or even more, our guide will tell you exactly how to do it.

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Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: December 17, 2021

If you’re looking to get a mortgage with two or more people named  on the paperwork, it is possible – but there are some important things you need to consider before diving in.

In this guide you’ll find everything you need to know about multiple-person mortgages. This will include how many people can be on a mortgage to buy a house together, the basic application process, and the requirements for everyone involved.

How many people can be on a mortgage?

Most lenders will permit between one and four people on a mortgage. This is partly because there’s only space for four names on UK property deeds, but the maximum number allowed on a mortgage will vary between lenders.

Some lenders will only arrange joint agreements for couples or friends who plan on living in the property. Others won’t take everyone’s income into consideration. So, if you plan on pooling together resources, you might need expert advice from a broker who can match you up with the right lender.

Mortgages with 3 applicants

You can get a three-person mortgage, but some lenders will only consider your application if they are blood relatives. Even if people outside your family are allowed on the mortgage, certain lenders will not permit the use of everyone’s income during the affordability assessment.

Mortgages with 4 applicants

It’s possible to arrange a mortgage with four people, but the difficulties you encounter will be similar to organising a two or three person loan. Your key hurdle to overcome will be finding a lender who will let you combine incomes and deposits.

Only a small number of lenders out there are willing to set up a four-person arrangement and calculate all mortgage requirements based on everyone’s circumstances and incomes.

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How to get a mortgage with multiple applicants

Now that you’ve got a decent grasp on how many people can be on a mortgage, let’s take a look at some simple steps for buying a house together:

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Get your documents ready:

With two or more on your application, this is going to mean more paperwork. It’s important all the applicants are on the same page and you each have everything to hand. This will include things such as: identification, proof of address, three months of bank statements, proof of income, and any other documents, the same as each of you would need if you were applying for an individual mortgage.

Check your credit reports:

This is where applicants sometimes slip up. If everyone involved does a credit check, this is going to give you some insight into how your joint application might be received. You may find some small issues or errors, that once sorted, will greatly improve your chances of a smoother process and a successful application.

Speak to a mortgage broker:

Speaking to a broker who is an expert in multiple-person mortgages is going to make things so much easier. It will keep your application on the right track and get everything where it needs to be without added confusion or complications. Bespoke advice is also going to help you find the right deal much faster and put you in touch with the most suitable lender from day one.

Our broker-matching service will evaluate your circumstances and pair you up with a mortgage advisor who specialises in this area. This service is completely free, so just make an enquiry to get started.

Eligibility requirements

To qualify for a multiple-person mortgage, all of the applications will be assessed based on the following…

Deposit amounts and loan-to-value

Combining your deposit with other applicants can reduce the total amount you need to borrow. Paying a higher deposit can also open the door to lower interest rates because you’ll have a lower loan-to-value (LTV) mortgage.

This is why it can be beneficial for you to deal with a lender who will accept deposits from all the applicants on the mortgage.

Income requirements

Multiple incomes can work in your favour but some lenders will view it as riskier to consider more than one income, which can lead to higher interest rates.

High incomes and good credit scores for each applicant is ideal, but not always realistic. Because there’s so many variables and every person is different, it’s really worth dealing with a broker who will be able to tell you exactly what’s needed from each person contributing.

What if one (or more) applicant has bad credit?

You can still apply if one (or more) applicant has bad credit. But this is a factor that will be taken into consideration by the lender. It can mean higher interest rates, depending on how bad and how recent the credit issues are.

But there are still many options and paths you can explore like removing an applicant or using a co-borrower. A skilled mortgage broker will look at everything available and guide you on the best way to arrange your application.

What’s the maximum you could borrow?

Common practice when calculating the maximum amount you can borrow with a 2, 3, or 4 person mortgage will be to use an affordability assessment based on the two highest-income earners. And the lending cap most lenders will use is calculated on 4.5x annual income.

However, there are some lenders who will allow everyone’s income in the calculations and others who have higher lending caps of 5x or 6x annual income. If you’re looking to maximise how much you can afford, speaking to an expert broker can ensure you get matched up with the right lender.

Alternative types of mortgages

You always have choices for setting up the best arrangement for your needs. Here are some alternative types of mortgages that might be worth taking a look at if you’re applying with multiple people:

Family offset mortgages

Family offset mortgages are a great pick if you’ve only got a small deposit. With this, you use your deposit and then a family member can contribute an additional amount to be held in an account linked to the mortgage.

Guarantor mortgages

If you can’t afford a mortgage or get approval, a family member can act as a guarantor. This means they act as a backstop if you can’t meet the payments. They’ll often have to use their own property equity or place significant savings into an account held by the lender.

Standard joint mortgage

This allows shared ownership of a property and is a popular choice for couples. There are different types of joint mortgages available and they can be quite straightforward to set up and arrange.

Joint borrower sole proprietor mortgages

Under a joint borrower sole proprietor mortgage, only one applicant lives in the property and is the sole person on the deeds. But the benefit is that multiple people can make payments. It’s a solid option if you have people who want to help with your mortgage payments but don’t want a stake in the property.

Benefits and disadvantages

The main benefits of setting up a multiple-person mortgage are:

  • Bigger deposit: the ability to combine deposits in order to increase the initial amount of equity.
  • Multiple incomes: a combination of incomes can reduce monthly repayment costs for each person.
  • Borrow more: using multiple applicants can increase your maximum loan amount and lead to a larger choice of properties.
  • Higher chance of approval: adding suitable companions to your application can increase the odds of a successful application.

Some disadvantages to consider are:

  • Complex: can be difficult to arrange, requires the cooperation of all parties involved and issues can arise if one of the applicants wants to move out.
  • Less choice of lenders: some lenders won’t entertain multiple-person mortgages with favourable terms, so it can be harder to find your right fit.
  • Shared liability: everyone listed on the mortgage will be responsible for doing their part and keeping up with the repayments.

Getting matched with an expert multiple-person mortgage broker

Multiple-person mortgages can be a useful way to combine forces and get the mortgage deal you want. However, there are a lot of moving parts that need to be taken into consideration and speaking to an expert broker straight away is going to make the whole process much easier for you and the other applicants.

A mortgage broker who specialises in multiple-person mortgages will be able to pair you up with the best lenders for your situation. This bespoke advice means a tailored service, less hassle, and no unwanted marks on your credit file.

Just call 0808 189 0463 or make an enquiry and we’ll introduce you to the best broker for your multiple-person mortgage.

FAQs

Can you have multiple people on a buy-to-let mortgage?

You can get a buy-to-let mortgage under these circumstances and most of the rules and limitations will be the same as arranging a residential mortgage. If you’re purchasing as shareholders in a limited company, then this can mean a slightly different arrangement for tax purposes.

Can you remove a name or take someone off the mortgage?

It’s possible to remove an individual from the mortgage at a later time. There will be a brief legal process to follow and once that’s sorted, you’ll need to speak with the lender about rearranging things, similar to a remortgage process.

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We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects. Ask us a question and we'll get the best expert to help.

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Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

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FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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