★ Key Takeaways
- Joint mortgages combine both incomes, typically allowing you to borrow 4-4.5x your combined salary (up to 6x with specialist lenders)
- All applicants are jointly liable – if one person can't pay, the others must cover the full mortgage payment
- Choose between Joint Tenants (equal shares, automatic inheritance) or Tenants in Common (flexible splits, own will) – the latter is essential for friends and family
- For LBTT first-time buyer relief in Scotland, ALL applicants must be first-time buyers – one experienced buyer disqualifies the group
- Exit options include selling the property, buying out your co-owner, transfer of equity, or remortgaging into one name
Introduction
With Scottish property prices continuing to rise, buying a home with a partner, friend, or family member has become an increasingly popular way to get onto the property ladder. A joint mortgage allows two or more people to pool their resources and borrowing power, making homeownership more accessible.
But buying together isn't without its complexities. From understanding how much you can borrow as a pair to choosing the right legal ownership structure, there's plenty to consider. In this guide, I'll explain everything you need to know about joint mortgages in Scotland.
Who Can Apply for a Joint Mortgage?
Most lenders accept 2 applicants on a joint mortgage, though some will consider up to 3 or 4. You don't need to be married or in a relationship – friends, siblings, and parents with children can all buy together.
Key eligibility requirements include:
- All applicants must meet individual criteria – Each person is assessed for income, employment, and creditworthiness
- Credit checks apply to everyone – The applicant with the lowest credit score often determines the rates available
- Age restrictions – Lenders have maximum ages for mortgage terms, which affects older applicants
How Much Can You Borrow Together?
The main advantage of a joint mortgage is increased borrowing power. Lenders add both incomes together, then multiply by the standard income multiple (typically 4-4.5x, or up to 6x with specialist lenders for higher earners).
Important: If you have 3 or 4 applicants, most lenders only use the two highest incomes for affordability calculations.
Joint Borrowing Power Examples
| Applicant 1 Income | Applicant 2 Income | Combined Income | Max Borrowing (4.5x) |
|---|---|---|---|
| £25,000 | £25,000 | £50,000 | £225,000 |
| £35,000 | £30,000 | £65,000 | £292,500 |
| £45,000 | £40,000 | £85,000 | £382,500 |
| £50,000 | £50,000 | £100,000 | £450,000 |
Note: Actual borrowing depends on individual circumstances, credit history, and lender criteria. Higher multiples (5-6x) may be available for higher earners.
Considering Buying Together?
Marc can explain your options and find the best joint mortgage deal for your situation.
Book Your Free ConsultationLegal Ownership Structures: Joint Tenants vs Tenants in Common
How you structure ownership is one of the most important decisions when buying together. In Scotland, you have two main options:
| Feature | Joint Tenants | Tenants in Common |
|---|---|---|
| Ownership Split | Equal 50/50 shares only | Flexible (e.g., 60/40, 70/30) |
| If One Owner Dies | Share automatically passes to survivor | Share passes according to will |
| Best For | Married couples, civil partners | Friends, family, unequal contributions |
| Can Sell Your Share? | No – must sell whole property | Yes – can sell your share independently |
| Declaration of Trust | Not typically needed | Strongly recommended (£150-500) |
My recommendation: If you're buying with friends or family members, always choose Tenants in Common and get a Declaration of Trust drawn up by your solicitor. This document sets out exactly who owns what percentage, what happens if someone wants to sell, and how to handle disputes.
Understanding Joint Liability
This is crucial: with a joint mortgage, all borrowers are jointly and severally liable for the entire debt. This means:
- If one person stops paying, the other must cover the full mortgage payment
- Missed payments affect both credit scores equally
- In the worst case, the lender can pursue either party for the full debt
Before committing, have honest conversations about finances, job security, and what would happen if circumstances change. A Declaration of Trust can also outline financial responsibilities.
First-Time Buyer Status and LBTT Relief
If you're a first-time buyer, you may qualify for LBTT relief – paying no Land and Buildings Transaction Tax on properties up to £175,000. However, there's an important catch:
ALL applicants must be first-time buyers to qualify. If even one person has previously owned property (anywhere in the world), the entire purchase loses FTB relief.
This can add significant costs. On a £250,000 property, the difference between FTB relief and standard LBTT is around £2,100.
Documents Needed for a Joint Mortgage
Each applicant needs to provide their own set of documents:
- Proof of identity – Passport or driving licence
- Proof of address – Utility bills or bank statements from the last 3 months
- Income evidence – 3 months' payslips and latest P60 (or 2 years' accounts if self-employed)
- Bank statements – Last 3 months showing income and spending patterns
- Deposit proof – Evidence of where your deposit funds come from
Getting Out of a Joint Mortgage
Circumstances change – relationships end, people move for work, or one person wants to buy elsewhere. Here are your options for leaving a joint mortgage:
- Sell the property – The cleanest option; split proceeds according to ownership shares
- Buy out your co-owner – One party purchases the other's share at market value
- Transfer of equity – Legally transfer ownership to one person, with mortgage lender approval
- Remortgage in one name – The remaining owner must prove they can afford the mortgage alone
Having a Declaration of Trust in place makes these scenarios much smoother to navigate.
Frequently Asked Questions
What happens if my co-buyer has bad credit?
Lenders assess all applicants' credit histories, and the person with the lowest score often determines which products you can access. Before applying, both parties should check their credit reports and address any issues. In some cases, it may be worth improving credit before applying together.
Can I buy with more than one friend?
Yes, some lenders accept 3 or 4 applicants on a joint mortgage. However, most will only use the two highest incomes for affordability calculations. You'll also need a more detailed Declaration of Trust covering all parties' shares and responsibilities.
Do I need a Declaration of Trust if buying with my partner?
While not legally required, a Declaration of Trust is valuable protection – especially for unmarried couples or where one person contributes more to the deposit. It costs between £150-500 through your solicitor and clearly documents who owns what, protecting both parties if the relationship ends.
What if one of us wants to sell and the other doesn't?
This is where a Declaration of Trust becomes invaluable. It should include provisions for what happens if one party wants to exit. Without agreement, the matter may need to go to court – an expensive and stressful process for everyone involved.
Ready to Buy Together?
Buying with a partner or friend can be an excellent way to get onto the Scottish property ladder sooner. With careful planning, the right legal structures, and a mortgage deal suited to your combined circumstances, it can work brilliantly for everyone involved.
At McGhie Mortgages, I help buyers across Edinburgh, the Lothians, and all of Scotland find the best joint mortgage deals. Whether you're buying with a spouse, partner, friend, or family member, I'll search the whole market to find lenders who offer the best terms for your situation and guide you through the process.
Thinking about buying together? Book a free, no-obligation consultation and let's explore your options.