Joint and guarantor mortgages

A joint mortgage is when you apply to borrow money to buy a home with someone else, like your partner, a friend or a relative. Everyone who applies will have to meet our lending criteria, and they’ll be jointly liable for the mortgage payments. This means that if one you is unable to pay your share of the monthly mortgage payment, the other person has to pay the whole amount. All applicants will have a legal claim to ownership of the property.

Can I get a mortgage with a guarantor?

No, but you can ask us about applying for a joint-borrower, sole-proprietor mortgage. This means that you can apply with someone who’s willing to accept joint responsibility for making mortgage payments without having a legal claim to the property. This differs from a guarantor mortgage, as guarantors only become liable for the debt if the mortgage applicant can’t make them at all. Both you and the non-proprietor applicant will need to show that you can afford the mortgage payments.

What does being joint tenants or tenants in common mean?

When you buy a property with other people using a joint mortgage, you need to choose how your ownership of the property is defined legally. Here’s an outline of your options, but you should consider getting legal advice before making any decisions if you’re in this situation.

Joint tenants. This option might be suitable if you’re married or in a long-term relationship with the person you’re buying with. It means you each

• Have equal rights to the property
• Can claim an equal share in any profit made if the home is sold
• Will automatically inherit the property if the other person dies

Tenants in common

This option might be suitable if you’re teaming up with friends or family members to buy a home. It means you

• Can each own a different share of the property
• Won’t automatically inherit the property if the other tenants die
• Can choose who to leave your share to in your will

If you choose to be tenants in common, you should consider asking your solicitor whether you need to set up a deed of trust, which sets out how much of the property each tenant owns. This helps you avoid any misunderstandings or problems if you later part and sell the property.