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3 Person Mortgage
Diarmuid Phoenix is back to explain how a three-person mortgage works.
Can you have a three-person mortgage? Can three people be on the same mortgage?
Yes, three people can be on the same mortgage. In the UK, it’s considered a multi-applicant mortgage or a joint mortgage. Joint mortgages tend to describe two people on the same mortgage, but obviously here we’re adding a third.
A joint mortgage or multi-applicant mortgage allows two or more people to apply for a single loan and purchase one property.
Can you get a mortgage with friends?
Yes, provided each individual meets the lender’s criteria and there is sufficient income to afford the mortgage.
There shouldn’t be any other barriers to buying with friends. It’s usually recommended to set the ownership up slightly differently, for example, as tenants in common rather than joint tenants. But it is possible to get a mortgage with friends.
How do mortgages with three or more applicants work?
With three or more applicants, it works similarly to a joint mortgage for two, but involves additional considerations with a greater number of people involved.
These can include eligibility and affordability assessments, shared liability and deposit – where contributions may differ between applicants. Some people may be putting down a smaller amount than others, in which case their shareholding within the arrangement might be different. There are a few things to consider.
What deposit do you need and how much can you borrow with three people on a mortgage?
In terms of the deposit, it shouldn’t really differ from standard mortgages – it’ll depend on each individual lender’s criteria. Typically it’ll be a minimum of 5% deposit for most residential mortgages.
For Buy to Let, it’s usually 25%. However, some lenders over in England at the moment have reduced that requirement [correct at the time of recording in March 2025]. Whether it’s one, two or three people, the minimum deposit levels are usually the same.
What documents do you need with three people on the same mortgage?
It’s fairly similar to a joint mortgage or for a single applicant, but it might be necessary to provide additional details and clarity, particularly around income, liabilities and creditworthiness.
The lender will assess the combined income, the credit history for each individual and affordability for all the applicants. You might also need to submit documentation proving the source of your deposit, your employment status and details of existing financial commitments.
The key differences arise from the number of applicants and the added complexity in evaluating multiple financial situations. Everybody’s situation is slightly different, so it’s essential for all applicants to provide all the necessary documents and have a clear agreement regarding ownership responsibilities.
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Does it cost to add someone to a mortgage?
Usually there’d be administrative fees – typically between £150 and £500 – and potentially valuation fees. Again they range typically from £150 to 500. There are legal fees for adjusting the title deed of £200 to £500.
Normal mortgage fees may apply as well, if you’re changing the contract by adding a person on. That will depend on the lender and the particular product that you’re going for.
Do you pay stamp duty when adding someone to a mortgage? And what other costs are involved?
Potentially stamp duty may be applicable, especially if there’s going to be a transfer of equity. If the individual being added has other properties in the background, they may need to pay higher stamp duty rates.
We did another podcast recently on stamp duty, so listen to that for more information. Other costs involved we covered in the previous question – it’s the administrative fees, valuation fees and legal fees.
Stamp duty will be the biggest one. Whether you’re in Northern Ireland, Scotland, England or Wales, stamp duty regulations will apply for each particular region. They’re also changing very soon [podcast recorded in March 2025], so it’s important to check that out before embarking on this.
Which lenders offer mortgages to groups of three or more people then? Are there many?
Most high street lenders in the UK will offer mortgages to multiple applicants, but not all of them have the same degree of flexibility in naming multiple people on a single mortgage. Policies regarding multiple applicants can vary between lenders. Some may have specific limits on the number of people that can be included.
How do I get a multi-applicant mortgage?
The experience that a mortgage broker brings is invaluable. The whole journey from start to finish can be onerous, and there are many ways to make a wrong step along the way.
Having somebody who knows the market, the products and the processes from start to finish and can answer any questions is an enormous help .
Always seek out the assistance of an experienced mortgage broker or firm, and check their Google reviews. That’s always a good indicator of whether someone will provide good service.
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