Joint Mortgage With Parents
- You'll experience an unrivalled customer service
- We are an independently owned brokerage offering first charge mortgages from the whole of the market.
- You can contact us 24/7, we're always available to help
Whats on this page
As Featured In . . .
Joint Mortgage With Parents
Rob Philpin explains how and why you might get a joint mortgage with your parents.
Podcast approved by The Openwork Partnership on 14/04/2025
Can I get a joint mortgage with my parents?
Yes, you can. Your income can then be used alongside your parents’ income towards the mortgage lender’s affordability assessment. By combining your incomes, you could increase how much you’re able to borrow.
Lenders will consider financial commitments that your parents have, as well as your own.
If they already have a mortgage, for example, this is also included in the affordability assessment.
Will I miss out on a First Time Buyer discount if I get a joint mortgage with my parents?
Assuming this relates to stamp duty, you won’t necessarily miss out.
Some lenders offer a scheme called Joint Borrower Sole Proprietor – in other words, joint borrower, sole owner. Both people are named on the mortgage and both incomes are used towards the affordability assessment. But only one person is named on the deeds of the property – they are the sole owner, or proprietor.
Stamp duty liability is based on the status of the person named on the deeds. If you’re a First Time Buyer and named on the deeds, stamp duty charge is based on that. If your parents own a property already and are just named on your mortgage, not the deeds of your property, that doesn’t impact the stamp duty liability.
What’s the difference between joint tenants and tenants in common?
This refers to ownership rights when one owner dies. It’s a decision that everyone makes when they buy a property with someone else. It wouldn’t be required when buying a property with a parent who’s only named on the mortgage and not in the deeds, though.
Joint tenants ultimately means that if one owner dies, their share automatically passes to the surviving owner, regardless of any Will. Whereas with tenants in common, each owner can own a percentage share of the property.
It could be any split, even 50-50. Upon death, their share of the property is inherited by the deceased’s estate – so whoever is named as beneficiaries in a Will.
It’s always really important to make a Will, but probably even more so in this scenario, to ensure those wishes are met.
What deposit do you need for a joint mortgage with a parent? How much can I borrow for a joint mortgage with parents?
How much you can borrow would be based on the lender’s affordability assessment. This takes into consideration income and expenditure for both parties. The assessment is different from lender to lender.
It’s always a good idea to speak with a broker who can navigate this for you and advise on the most suitable lender for you. The deposit needed will be a minimum of 5%, but some lenders will require more.
What eligibility criteria do we need to meet for a joint mortgage with my parents?
Criteria varies from lender to lender. It could be down to the size of the deposit, the number of applicants on the mortgage, income requirements or perhaps age restrictions. Again, it’s always best to speak to a broker for advice on which lenders suit your requirements and circumstances.
Does a joint mortgage with parents have to be 50-50?
With any mortgage, anyone named on the mortgage is jointly liable for its repayment. This means each borrower is responsible for making the full payments, not just their share.
If one person doesn’t make payments, the lender can pursue the other borrower for the full amount. Often, though, the owner buying the property will be making the payments themselves – the parent is just there as a backup if needed.
There’s no requirement for the payment to be split 50-50 with the parent – and it’s purely an individual decision as to how it’s paid.
Speak To An Expert
Our highly experienced Advisers are ready to help you with either buying or remortgaging a home, protecting your property and lifestyle along with saving you time and effort, ensuring you have a competitive deal right for you.
How will my parents’ age impact our ability to get a joint mortgage? What’s the maximum age?
Again, this will vary considerably from lender to lender. Some lenders factor the parent’s retirement age into the affordability assessment.
If they will retire during the mortgage term, or they’ve already retired, lenders consider the pension income. It may mean a shorter mortgage term to ensure it finishes before a certain age, although some lenders don’t have a maximum age at all.
Can my parents pay the full deposit? And as all be names on a joint mortgage, would this be classed as a gifted deposit?
Yes, parents can still provide the deposit money on a Joint Borrower Sole Proprietor mortgage. It would still be classed as a gift as they’re not an owner of the property.
What happens if you have a joint mortgage with parents and they die?
With most people who start out on a Joint Borrower Sole Owner mortgage, the plan is usually to remortgage when the fixed rate ends. Perhaps in five years time, your income will have improved and the mortgage balance would have reduced.
At that point, it may be possible to take on the mortgage solely and remove the parent. It’s not a lifelong commitment, just something done in the short term to aid someone in buying a home.
In the event of a parent passing away, you would still need to pay the mortgage. It may be a good idea to arrange life insurance to support this. It wouldn’t necessarily need to repay the full mortgage amount, but perhaps a sum that would make the mortgage balance more manageable. This is something a broker can provide advice on.
Is getting a joint mortgage with my parents a good idea? What are the advantages and disadvantages?
It is a requirement with most lenders that parents are given independent legal advice when being named on a mortgage, but not as an owner of a property.
It’s due to the implications of being named on a mortgage and being responsible for its repayment, but not benefiting from any ownership. It’s important for this to be understood.
The ultimate advantage of the scheme, though, is that someone can borrow more to purchase a higher priced property than they would normally be able to afford.
How do you apply for a joint mortgage with parents? What’s the process?
The application process is very much the same as for any mortgage. Lenders will ask to see documents from both applicants and assess these.
It’s really the legal side of the process with the solicitors that’s different – in how they register the owner of the property with the Land Registry.
How can a mortgage broker help here? Is there anything else you’d like to add?
This can be a more complex area of lending. There can be big differences with how different lenders assess applications of this nature. A mortgage broker will be able to advise on the best lender to meet your individual needs.
We’ve talked about how a parent can be added to a mortgage to help a son or daughter, which is the most common use of this scheme – but it can also be used the other way around, where a son or daughter helps a parent purchase a property.
It could be that a retired parent needs to move, but their pension income isn’t sufficient for a mortgage. The parent can remain the sole owner, with the son or daughter named on the mortgage to contribute their income.
Again, it’s best to speak to a broker for help with this – we will provide advice for your individual circumstances.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Approved by The Openwork Partnership on 14/04/2025.
Useful Links
Why Yellow Brick Mortgages
- Unrivalled customer service
- We are an independently owned brokerage offering first charge mortgages from the whole of the market.
- Available 24/7 to ensure we are there to help when you need us.
