Can you buy a property with a friend?

David Lauder, an ESPC Mortgages independent mortgage adviser, gives insight into whether you can get a mortgage with a friend.

Buying a house with a friend

One question being asked more frequently is can I get a mortgage with my friend? The short answer is yes, you can get a joint mortgage with a friend. Basically, applying for a mortgage with a friend is similar to a normal application process and very similar to an unmarried couple buying together.  

The application and responsibility will be joint and will be assessed in the normal ways factoring in your joint affordability i.e., income less your monthly fixed commitments so regular loan repayments, car finance, credit card balances, etc. They may also assess bank statements to see evidence of how you conduct your finances on a daily basis. You will also be asked to pass the lender’s credit score which will be assessed on your combined scores and conduct to confirm eligibility which is no different to any other type of mortgage. 

What should you look out for? 

One thing to highlight is that you may wish to seek independent legal advice regarding the ownership of the property as it will be based on a 50/50 split but if one of the applicants is putting down more deposit, for example, you may wish to draft up a legal clause to ensure this money would be repaid back first in the event of a property sale. It would also be beneficial to employ a solicitor to produce a will which could be a useful document to have in such an event. 

To summarise, no case is the same and different providers will assess your circumstances in different ways to decide how much they will lend you but getting a mortgage with a friend is assessed in the same way as most types of mortgages. 

Independent mortgage advice  

We at ESPC can help, we are independent and deal and have the knowledge to analyse and advise who will look at your circumstances best but also ensure any mortgage commitment is affordable so that not only are we helping you buy a house but we are helping you keep it, come in and see me when you are free. 

Get in touch with the team today by calling 0131 253 2920 or emailing fsenquiries@espc.com.

The initial consultation with an ESPC Mortgages adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £395 (£345 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.

The information contained within this website is subject to the UK regulatory regime and therefore restricted to consumers based in the UK.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.

ESPC (UK) Ltd is an Appointed Representative of Lyncombe Consultants Ltd which is authorised and regulated by the Financial Conduct Authority.