4 Person Mortgage

What documents do you need with four people on the same mortgage?

It’s the usual documents – a form of ID, proof of address, perhaps in the form of a driving licence, and then income documents, whether that’s payslips or self-employed documents, plus bank statements.

Some lenders might not necessarily need the income documents for applicants whose income isn’t being used. In general, though, it’s the same documents as usual.

If we go down the route of Joint Borrower Sole Proprietor, where some people might not be on the deeds of the property but are responsible for the mortgage, they often need independent legal advice. That’s slightly different than with four applicants on a standard mortgage.

Does it cost to add someone to a mortgage?

If you’re adding to someone from the start, then it would be similar costs. You might pay a bit more on the legal side, but the upfront costs would be the same.

If you’re adding someone to an existing mortgage, there definitely would be extra legal costs to amend that. There could also be stamp duty liabilities, so you should check the situation on that with an accountant, with HMRC directly or the solicitor that’s acting.

Do you pay stamp duty when adding someone to a mortgage? What other costs are involved?

Potentially you could pay stamp duty if you’re transferring any part of a property to someone, depending on your marital status, or if you’re getting divorced.

You may pay stamp duty on the value of the equity for the transfer you’re receiving. Again, it’s always best to speak to a tax specialist in this scenario- and a solicitor. If there is some duty due, that’s something you definitely need to pay.

What are the pros and cons of having four people on a mortgage?

Generally speaking, people add others onto a mortgage to increase their borrowing capacity. That’s the main benefit. If people are not able to borrow what they need by themselves, they can look to friends or family to support them in that way. It can make a big difference as to what’s possible.

Everyone on the mortgage needs to be aware of what they’re getting into. They will be just as liable for the mortgage as the person they’re supporting. They all need to go in with their eyes open, fully aware of what a long-term commitment it is.

Which lenders offer mortgages to groups of four or more people? Are there many?

There are plenty out there. With four applicants, the risk is more spread out for the lender.
They’ve got four people to come after if you don’t pay the mortgage, rather than just one or two people.

If there’s additional income coming into the household, that can help pay the mortgage should one person lose their job. That means repossession is less likely – there’s more money coming into the house.

All the borrowers are equally liable, so if it comes to the worst, the lender has four people to get their money back from.

How do I get a four-person mortgage or a multi-applicant mortgage?

Everyone who is potentially going to be on the mortgage needs to be equally involved from the start. We don’t want somebody taking the lead and someone else not knowing exactly what they’re getting into.

If you help someone on a mortgage, you’re potentially impacting yourself further down the line – it would be taken into account for affordability for anything else you want to do. It’s just about going into it with your eyes open, and speaking to somebody who can outline all the pros, cons and ramifications – both now and further down the line.

You all need to be on the same page because it could get messy. Perhaps in 18 months’ time, one of you meets a partner and wants to move in with them. That could make things tricky.

You need the right advice from the start so everyone knows the situation and the potential drawbacks of entering into the mortgage. That’s true with any kind of mortgage – it’s a big commitment, so you need to know what you’re doing from the beginning.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

For specialist tax advice, please refer to an accountant or tax specialist.

Podcast approved by The Openwork Partnership on 03/06/2025