Getting A Mortgage Using Joint Income

Joint mortgages are very common, and in the vast majority of circumstances, will afford you access to a higher level of borrowing than you’d achieve on your own.

In this article, we’ll look at how much additional applicants can impact the size of your loan, why you might use a joint mortgage, and where to find the most suitable deals for your needs.

How much can a couple borrow for a joint mortgage?

When you apply as a couple, most lenders will combine the incomes of both applicants and use a multiple of your annual income as a basis for the loan amount, however, some use a certain multiple of the highest earner’s income and add the lower earner’s income to that.

Mortgage lenders typically offer 3 to 4.5 times the joint gross annual income for mortgages in the UK, potentially extending to 6 times your joint income based on the deposit size. Affordability assessments take into account credit history, debt-to-income ratio, employment, and living expenses.

Some lenders offer a slightly lower income multiple for joint applicants compared to individual applicants. For example, Halifax will lend 5 times the income of a couple jointly earning £50-£75k between them, whereas a single applicant on £75k could borrow up to 5.5 times their income*.

*Please note: lender terms and conditions are subject to change at their discretion

To get a clearer idea of your maximum borrowing, enter the combined income of all of the mortgage applicants into our calculator below.

How do joint income mortgages work?

Joint mortgages offer a great option for those struggling to get onto the property ladder independently, but there is no real difference in the way that the mortgage works, other than at the application stage. Depending on the number of applicants, lenders will generally consider their combined income, so typically, joint applicants can borrow more than a single applicant.

Although they are most often used for 2 applicants that want to purchase a property together, there are circumstances where up to 4 applicants can apply for a joint mortgage together. Not all lenders will allow this, and even those willing to consider 3 or 4 applicants, will often only look at the combined income of the 2 highest earners amongst them.

Example calculations

This table shows how much impact your joint income, and the income multiple offered can affect the size of your loan.

As you can see, a couple earning £50k between them would need to find a lender willing to offer them 6 times their income to get a £300k mortgage, which is possible, but quite difficult to attain, and this level of borrowing is often reserved for professionals and higher earners.

A couple with a joint income of £60,000, however, would only need to borrow 5 times their income, which is much easier to achieve. Remember, not all mortgage lenders use income multiples, so the size of loan you need may still be achievable with the right advice.

How to get a joint mortgage

If you’re looking for a joint mortgage, your first step should be to find a specialist mortgage broker with experience in this area as this will boost your chances of getting approved at the best terms available.

Using our free broker-matching service you can speak straight away to the right broker by simply making an enquiry online. They’ll be able to help with:

• Readying all the necessary paperwork, based on both applicants
• Downloading your credit reports
• Finding the right lender and securing the best deal for you

Did you know… An Online Mortgage Advisor broker has access to more deals than any comparison site.

Eligibility criteria

You can see how important the role of income/affordability plays in determining how much you can borrow, but it’s not quite as straightforward as borrowing your salary x 4.5. Most lenders use income multiples as a guide for how much you can borrow, but a full affordability assessment will also include a thorough review of your outgoings too.

The following eligibility criteria could also indirectly impact how much you can borrow by possibly limiting the number of lenders willing to accept your application:

• Deposit size – As joint borrowers, you won’t need a larger minimum deposit than a solo borrower (typically 5%), however, if you’re able to combine your savings to provide a larger deposit, more lenders will consider your application which, in turn, could mean you qualify for better interest rates.
• Employment types – High street lenders tend to favour employed applicants, as they consider them to be more stable, however, self-employed people generally have access to the same products, with slightly stricter criteria.
  • There is no requirement for joint borrowers to have the same type of income and it’s perfectly possible to get a mortgage if one person is self-employed and the other is a PAYE employee, for example.
• Living expenses – The outgoings of every applicant will be considered, regardless of how much they are contributing to the mortgage, which means those with a low income and high outgoings could be more of a liability than a benefit to a joint application.
• Credit record – Every applicant’s credit record will be reviewed by a lender. If any of the applicants have credit issues, it could restrict the number of lenders available to you. In some cases a bad credit lender may be the best option, however, a qualified broker will be able to help you to determine what’s best in your scenario.

It’s also worth considering that once you’re financially connected to others, such as by a joint mortgage, any bad credit issues they have will impact your credit rating, which can impede your future borrowing potential.

Can you get a joint mortgage with only one income?

It’s certainly possible and if you’re married, it’s likely to be your only option, as most lenders will insist that married couples have a joint mortgage whether they both work or not. Some lenders may be willing to consider the future income of a non-earning applicant that is raising a family, for example, but plans to go back to work at a later stage, especially if they have a defined career path to return to.

However, this may not always be the best option for those applicants who are applying with an unmarried partner or other relations, for example, depending on the circumstances of the other applicant(s). The first thing to consider is that joint applicants without income will be considered financially dependent on you, and this can impact your affordability.

Get matched with a joint mortgage expert

Finding the right joint mortgage can be a difficult task without the guidance of someone who has experience in dealing with this type of application regularly. An expert broker will make sure you’ve considered every option available to you, and that you understand the full implications of the financial partnership you’re forming.

Our free broker matching service will pair you with one of the brokers in our network, making sure their experience is closely matched to your needs. To make use of our 5-star rated service and save yourself valuable time and money, simply call on 0808 189 2301 or make an enquiry, and we’ll get you on the right path.