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How Many People Can Be On a Mortgage?

Written by, Marija Petkova

Updated May, 12, 2022

If you’re looking to buy a house with two or more people, you might be wondering if there’s a limit on how many people can be on a mortgage. 

There’s no legal limit on the number of names you can put on a home loan, but whether you can get a mortgage as a group depends on a variety of factors. 

Let’s dive in.

What Is a Multiple-Person Mortgage?

A multiple-person mortgage is a home loan that allows two or more people to share responsibility for the debt. This type of mortgage can be useful for people who want to buy a home together but don’t have the financial resources to do so on their own.

Multiple-person mortgages can also help couples who have different credit scores qualify for a loan.

However, multiple-person mortgages, as well as the practice of adding a name to a mortgage, come with a few risks. 

Firstly, all of the borrowers named on the loan are responsible for repaying the debt. This means that if one borrower misses a payment, the other borrowers will have to take the hit.

Did you know? 7% of British adults saw their property debt as a heavy burden.

Second, every borrower’s credit history and score will be considered when applying for the loan. Also, if one borrower misses a payment, it might negatively affect the credit scores of the rest of the borrowers responsible for the mortgage.

How Many People Can Be On a Mortgage?

The maximum number of applicants that a lender might accept on a joint agreement is three or four. It ultimately depends on the lender how many names you can put on the home loan. 

Borrowers don’t necessarily have to be married or in a civil union to apply for a joint loan. 

A 3-people mortgage or a 4-person mortgage is possible, but lenders are more likely to accept applicants who are blood relatives. Others may allow friends and family to be named on the same deeds but won’t use the income of all applicants during the affordability assessment (limiting it to two people).

The best way to find a lender that could accept a 3-way mortgage or a mortgage with four people in which all of the applicants’ earnings are taken into consideration, you should contact a broker that specialises in multi-applicant mortgages. They can help you figure out what a good mortgage rate is and where to find it.

How to Get a Multi-Person Mortgage

Here’s how to apply for a multi-person mortgage.

  1. Prepare your documents 

Regardless of whether you apply for a loan alone or with other people, lenders require certain documentation, including: 

  • Identification forms
  • proof of address
  • three months of bank statements
  • proof of income 
  1. Credit score check 

Every applicant needs to get a copy of their credit report and check their credit score to see if they are eligible for a mortgage. A good credit score is anything between 420 and 860.

  1. Contact a mortgage broker

Multiple-person mortgages can help with your application process, figure out whether a multi-person mortgage is a good idea, and find a good deal. 

Eligibility Requirements

Lenders usually look at the following criteria to determine whether to accept a borrower’s application.

  • Deposit amounts and loan-to-value

The total amount that you would like to borrow can be reduced if you combine your deposit with the rest of the applicants. Paying a larger deposit usually results in a lower loan-to-value (LTV) mortgage and helps you qualify for a lower interest rate.

  • Income requirements

Having two or more paying sources of income can work to your benefit. However, some lenders will consider it risky to take into account more than one source of income, which may result in an offer with higher interest rates.

Alternative Types of Mortgages

There are many different types of mortgages. If you are applying with more people, here are some alternative types of mortgages that might be interested in: 

Family offset mortgages

Family offset mortgages are a good idea if you’re applying for a loan with other family members. With this type of mortgage, your deposit is combined with another family member’s money to create a savings account that is linked to the mortgage. The funds in the savings accounts offset the interest you pay on the mortgage and can reduce the length of the loan.

Guarantor mortgages

If you cannot afford a mortgage or obtain approval, you can ask a family member to act as a guarantor. The guarantor is a safety net for the lender when the borrower can make payments. In most cases, they will have to put their own property equity or make significant deposits into an account with the lender’s permission.

Standard joint mortgage

A standard joint mortgage allows two or more people to share ownership of a property. Joint mortgages come in a variety of forms, and they are simple to set up and arrange. Standard joint mortgages are one of the best options for couples. 

Joint borrower sole proprietor mortgages

A joint borrower sole proprietorship mortgage allows other people, whose names aren’t on the home loan, to make payments without acquiring a stake in the property. In this type of loan, the borrower that lives in the property is also the sole lessee on the title. 

Bottom Line

Multiple-person mortgages are a possibility, but whether your application gets accepted depends on a variety of factors, including the applicants’ credit history and score, their income, and deposit amount. Take note that there was a drastic decline in approvals when the pandemic started.

Frequently Asked Questions And Their Answers

Can a joint mortgage be split?

It is possible to split a joint mortgage. You can either sell the property and share the money you earn, or another person can buy your share in the property. 

How to get out of a joint mortgage?

Getting out of a joint mortgage or even buying someone out of a mortgage is a complex process. It requires going through a lot of legal steps, so it’s a good idea to get expert assistance.

Who can be on a joint mortgage?

Joint mortgages are most often taken out by two people who are married or in a civil union. However, there are lenders that would accept applications from family members or friends. If you’re wondering how many people can be on a mortgage, lenders usually allow a maximum of four people to apply for a joint mortgage. 

My name is Marija, and I'm a financial writer at DontDisappointMe. Although finance might not be everyone's cup of tea, my 10+ years of working in one of the biggest banks in my country, and my interest in extensive research on everything finance/investment-related, have made me somewhat of an expert in the field (if I do say so myself). No longer having the passion to work in a corporate setting, I decided that I couldn't let all of this knowledge go to waste so I started writing. And, here I am! Today I try to share my knowledge with my audience in the hopes of making this topic as simple and interesting as possible. In my leisure time, I like spending time with my family and travelling to new locations.