Buying a Property With a Friend

22 September 2022

ESPC Mortgages independent adviser, David Lauder, has given us his insight into whether you can get a mortgage with a friend.

A question that is becoming more frequently asked is “can I get a mortgage with my friend?”. In short, the answer is yes. Applying for a mortgage with a friend is similar to the normal application process and very similar to an unmarried couple buying together. 

The mortgage application and responsibility will be joint and assessed in the normal ways factoring in your joint affordability i.e., income less your monthly fixed commitments so regular loan repayments, car finance, credit card balances, etc. they may also assess bank statements to see evidence of how you conduct your finances day to day. As well as this, you will be asked to pass the lender’s credit score which will be assessed which will be assessed on your combined scores and conduct to confirm eligibility which is no different to any other type of mortgage. 

What should you look out for?

One thing to highlight is that you may want to seek independent legal advice regarding the ownership of the property as it will be based on a 50/50 split but if one applicant is putting down more deposit, for example, you may want to draft up a legal clause to ensure this money will be repaid back first in the event of a property sale. It is also beneficial to employ a solicitor to produce a will which could be a useful document to have in such an event. 

Overall, no case is the same and different providers will assess your circumstances in different ways to decide how much they will lend you but getting a mortgage with a friend is assessed in the same way as most mortgages.