Taking that first step onto the housing ladder can be tricky, particularly if you\u2019re buying alone. As such, we hear from lots of would-be buyers who are interested in buying a property with a friend or family member.\r\n\r\nTwo incomes are obviously better than one and pooling resources with a loved one can be a great way of making the move into homeownership, but you\u2019ll still need the right advice to get the best rates, and that\u2019s where we come in! We can introduce you to a broker who specialises in friends and family mortgages, and we\u2019ll do this for free!\r\n\r\nIn this article we\u2019ll cover:\r\n<ul>\r\n \t<li><a href="#buying">Buying a property with family or friends<\/a><\/li>\r\n \t<li><a href="#joint">Joint mortgage with parents<\/a><\/li>\r\n \t<li><a href="#anything">Anything else I should know about?<\/a><\/li>\r\n \t<li><a href="#friends">Getting a joint mortgage with friends<\/a><\/li>\r\n \t<li><a href="#help-deposit">Getting help with your mortgage deposit<\/a><\/li>\r\n \t<li><a href="#guarantor">Guarantor mortgages<\/a><\/li>\r\n \t<li><a href="#three-app">Can I get a mortgage with three applicants?<\/a><\/li>\r\n \t<li><a href="#expert">Speak to an expert<\/a><\/li>\r\n \t<li><a href="#faqs">FAQs<\/a><\/li>\r\n<\/ul>\r\n[feefo-banner]\r\n<h2 id="buying">Buying a property with family or friends<\/h2>\r\nGetting a joint mortgage with friends, siblings or another non-parental family member isn\u2019t really any different to getting one with your partner. Whether it\u2019s with a son, daughter, brother or sister, or your best friend - the <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/joint-mortgages-in-the-uk\/">general rules around joint mortgages<\/a> apply.\r\n\r\nBuying with your parents - or with their help - however, is often slightly different, largely because of their age and income. Read on for more information about this...\r\n<h2 id="joint">Joint mortgage with parents<\/h2>\r\nParent\/child<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/joint-mortgages-in-the-uk\/"> joint mortgages<\/a> are quite common, but if you\u2019d like to buy with your parents as joint tenants or tenants in common, affordability and age will be the key issues.\r\n<h3>Types of tenancy<\/h3>\r\nWhen you buy a property with someone else, you can either do so with a<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/joint-tenants-versus-tenants-in-common\/"> tenants in common mortgage<\/a> or a joint tenancy agreement.\r\n\r\nJoint tenancies tend to be favoured by couples. With a joint tenancy you each own an equal share of the property, and when one of the joint tenants dies, the property immediately passes to the other person. If you\u2019re not married to the co-owner, for example, if you\u2019re sharing a mortgage with a friend, you might still have to pay inheritance tax.\r\n\r\nAs tenants in common, you don\u2019t have to own equal portions of the property and you can decide what to do with your share if you die.\r\n\r\nIf you get a joint mortgage with friends, most experts would recommend getting a Deed of Trust written up with the help of a solicitor, outlining who owns what between you.\r\n<h3>Can I get a joint mortgage with a retired parent?<\/h3>\r\nYes, but it might prove more difficult than it would if the parent you\u2019re getting a mortgage was still in full-time employment.\r\n\r\nWhile your parents may have the income to afford the mortgage at present, if they\u2019re approaching retirement age you may run into some problems.\r\n\r\nSome lenders will have an age cap in place for borrowers. This means the mortgage will not be allowed to run past that age. This can be an issue when looking for a joint mortgage with a parent. For example, for lenders with an age limit of 75 a 50-year-old mum or dad would not be allowed a mortgage term longer than 25 years as the mortgage must reach maturity before the applicant reaches 75.\r\n\r\nAge limits differ from lender to lender. Some lenders have recently relaxed their rules, allowing borrowers to hold a mortgage up to 85 years of age. Some smaller lenders, most notably several building societies, have no strict upper age limits.\r\n<h3>Shared responsibility<\/h3>\r\nGetting a mortgage with friends means you\u2019re sharing responsibility for the repayment of the debt. All lenders want to be sure that anyone taking out a mortgage is able to repay it and as such, the lender will want to ensure all applicants are able to manage the repayments. If you\u2019re splitting a mortgage with a friend both of your financial histories will be taken into account.\r\n\r\nIf one of you has a poor credit history, it could impact your chances of being accepted by some lenders.\r\n\r\nIt\u2019s also worth noting that when you take out a joint mortgage with a friend the responsibility for missed payments will fall on both of you.\r\n<h3 id="jo-sp">Joint applicant sole owner<\/h3>\r\nOne way of ensuring you have sole ownership of the property is to apply for a<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/joint-borrower-sole-proprietors\/"> joint owner sole proprietor mortgage<\/a>. These mortgages essentially allow your parents to join a mortgage without actually being joint mortgage holders of the property.\r\n\r\nAt the moment, only a minority of lenders offer this option and, once again, the age of your parents will be taken into account. One benefit of this option is that because your parents should avoid falling foul to the 3% stamp duty surcharge imposed on second homeowners.\r\n<h3>Would a family mortgage be more affordable?<\/h3>\r\nObviously, the more the merrier. However, there are lenders who will only take <a href="#affordability">two incomes into account<\/a>, while a few will combine four or more salaries. You need to get the right advice in this area, so take a few minutes to talk to one of the brokers we work with, they have whole market experience and will do everything they can to get you the best deal.\r\n<h2 id="anything">Anything else I should know about buying with friends or family?<\/h2>\r\nAlong with the affordability criteria outlined above, you\u2019ll also have to meet the standard requirements that anyone looking for a mortgage\u00a0 - whether that be sharing with a partner, a best pal or a parent - has to meet. This includes raising a deposit, covering the costs of solicitor fees and searches and, depending on the price of the property, paying Stamp Duty.\r\n\r\nYou can read more about the general eligibility requirements for a mortgage in our <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/#what-lenders-ask">complete guide to mortgage applications<\/a>.\r\n\r\nYou\u2019ll also need to be sure that you\u2019ll be happy sharing the home with your friends or family.\r\n<h2 id="friends">Getting a joint mortgage with friends<\/h2>\r\nThis works exactly the same as getting a mortgage with a sibling or a partner. Read on for more information, including how many friends you can buy with and the potential impact on the interest rate.\r\n<h3>How many friends can I buy with?<\/h3>\r\nSome lenders will allow a maximum of two borrowers while others may allow a 3 person mortgage, other mortgage lenders<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/mortgage-with-multiple-applicants\/"> may allow four<\/a>. Just to complicate things further, of those lenders that will allow four borrowers on a mortgage, some will only consider the incomes of two of the applicants.\r\n<h3>Will I pay a higher rate?<\/h3>\r\nNo. Sharing a mortgage with a friend won\u2019t mean you\u2019ll have to pay a higher rate on your mortgage. If you\u2019re able to pool resources with the friend or friends you\u2019re buying with to raise a bigger deposit, the mortgage could actually be cheaper. That said, the number of lenders who accept four applicants and four incomes is relatively small.\r\n<h2 id="help-deposit">Getting family help with your mortgage deposit<\/h2>\r\nYou could just get a deposit from parents - or indeed, any family member. If your parents or close family members do give you a deposit, however, they need to put it in writing that this money is a genuine gift and you won\u2019t have to repay it, in order to appease the lender.\r\n\r\nIf your parents can\u2019t or don\u2019t want to hand you the cash for the deposit, you could consider a family offset mortgage. These mortgages are offered by several different lenders (although they often have different names so it may not be immediately obvious what they are!).\r\n\r\nSometimes known as family springboard mortgages or family deposit mortgages, these products allow customers to increase their eligibility with the help of their family. The borrower contributes 5% deposit and the family member who\u2019s supporting them places 10% of the property\u2019s value into a savings account held by the lender so the mortgage can be offset against their value. You can read more in our <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/deposits\/a-guide-to-family-deposit-mortgages\/">guide to family deposit mortgages<\/a>.\r\n<h2 id="guarantor">Guarantor mortgages<\/h2>\r\nAnother option that could help you get a mortgage with family support is a guarantor mortgage.\r\n\r\nWith a<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/guarantor-mortgages\/"> guarantor mortgage<\/a>, a parent or family member essentially guarantees your mortgage debt. This means if you were to miss a repayment your guarantor would be responsible for covering the payment.\r\n\r\nThe lender will then take into account the guarantor's income, debt, and savings, just like with any other applicant, however, the guarantor will not be named on the property deeds (as would be the case if you took out a joint mortgage with your parents.) As such, guarantor mortgages are a good option for borrowers whose income is not high enough to meet a mortgage lender\u2019s criteria for the amount they want to borrow.\r\n\r\nMany lenders withdrew their guarantor mortgages once<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/help-to-buy-mortgages\/"> Help to Buy<\/a> was introduced. Those lenders that do still offer it will usually require the guarantor to offer their own property as security against the loan.\r\n<h3>Do guarantor mortgages have higher rates?<\/h3>\r\nYes, family guarantor mortgages can have higher rates than standard mortgages. The interest rates of a joint mortgage with parents can be calculated after a chat with one of the advisors we work with.\r\n<h2 id="three-app">Can I get a mortgage with three applicants?<\/h2>\r\nYes! Some lenders won\u2019t allow more than two people to go on a mortgage, but others are more flexible and would be happy with three or four.\r\n\r\nThat said, not all of the mortgage providers who are okay with more than two applicants would be willing to allow all three or four applicants to officially declare their income. So, although three or four people might be named on the mortgage, the amount you can borrow might still be based on the combined salary of two applicants.\r\n<h2 id="expert">Speak to an expert<\/h2>\r\nBuying a home with friends or family can lessen the burden, but seeking expert advice before going ahead is always recommended. We work with mortgage brokers who specialise in customers who are buying with friends or family and they could help you save you time and money on your mortgage as they will introduce you to the right lender first time.\r\n\r\n<a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-a-specialist-broker">Make an enquiry<\/a> and we\u2019ll introduce you to the best advisor for your needs and circumstances. There\u2019s no obligation and our broker-matching service is absolutely free!\r\n<h2 id="faqs">FAQs<\/h2>\r\n<h3 id="affordability">How much can I borrow if I get a joint mortgage with a family member?<\/h3>\r\nAs with any mortgage, when applying for a joint mortgage with friends the lender will make a decision about how much you can borrow based on<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-calculators\/how-much-can-i-borrow-on-a-mortgage\/"> affordability<\/a>.\r\n\r\nAs above, this will depend on how many incomes the lender is taking into account. Lenders will also look at your outgoings - such as how much you spend each month on bills - and factor this in.\r\n<ul>\r\n \t<li>Some lenders will consider 4.5 x the combined income.<\/li>\r\n \t<li>Some lenders will consider 5 x the combined income. In the scenario above the borrowers may be able to borrow \u00a3400,000<\/li>\r\n \t<li>There are a handful of lenders who will lend up to 6x income in certain circumstances<\/li>\r\n \t<li>If you already own a property with family and are looking to raise additional funds, there are also some second charge mortgage lenders who will go as high as 10x income.<\/li>\r\n<\/ul>\r\nIt\u2019s worth noting that lenders approach to affordability is now more complex. While income multiples play a part, lenders will use an affordability model and will take into consideration things like how much you spend each month, what other outgoings you have and what could change in the foreseeable future that could impact your ability to repay.\r\n<h3>Can I buy with family but still own the property on my own?<\/h3>\r\nYes, you can. There are various ways of doing this and they have all been discussed in this article.\r\n\r\nSee the sections on\u2026\r\n<ul>\r\n \t<li><a href="#jo-sp">Joint owner sole proprietor mortgages<\/a><\/li>\r\n \t<li><a href="#guarantor">Guarantor mortgages<\/a><\/li>\r\n \t<li><a href="#help-deposit">Help with mortgage deposits<\/a><\/li>\r\n<\/ul>\r\n<h3>Can I take over a mortgage from a family member?<\/h3>\r\nIt is possible to transfer a mortgage between family members but there\u2019s lots to consider.\r\n\r\nLet\u2019s say you\u2019re looking to take over the family home mortgage. Firstly, you\u2019d have to pass the lender\u2019s affordability checks.\r\n\r\nSecondly, the lender may no longer be offering the fixed rate deal of the current mortgage so you may not be allowed to keep that deal.\r\n\r\nIt\u2019s also worth noting that if your parents want to \u2018give\u2019 you their mortgage-free house and they die within seven years of doing so, inheritance tax will need to be paid.