4 Person Mortgage
What's On This Page?
GET IN TOUCH
4 Person Mortgage
Paul Collinson is back to explain how a four-person mortgage works.
Can I get a mortgage with four people? Can a house be owned by four people?
Yes, you can get a mortgage with four people. Some lenders do allow it, and certain banks will take all four incomes into affordability – while others won’t.
If two people are already on the mortgage, you can also add another two by remortgaging that property and adding a third or fourth person onto it.
When they’re named on the mortgage and the deeds – which is just the traditional way of doing things – this is called a Transfer of Equity. You’d be altering the deeds, which incurs extra costs on the conveyancing side of things, at around £300 to £400.
With some lenders, you can add those people to the mortgage without adding to the deeds. This is explained in our episode on Joint Borrower Sole Proprietor mortgages.
In terms of legally owning a house in the UK, the maximum number of people that can own a house is four.
Can you get a four person mortgage with friends?
Yes, you can. It doesn’t have to be with a partner or a family member – you can buy a property with friends. Also, with a Joint Borrower Sole Proprietor mortgage, they may not necessarily have to live there.
How do mortgages with four or more applicants work?
It’s pretty much the same as with two applicants. Initially, we would look at all of the four incomes and commitments to ascertain the maximum borrowing potential. We’d then carry on with the rest of the mortgage process as normal.
What deposit do you need and how much can you borrow with four people on a mortgage?
The norm is a minimum of 5% deposit. There is one lender out there at the moment offering zero deposit, but they are very tight on criteria [information correct at the time of recording in March 2025].
They look at the rent you’re paying at the moment and bring that into the affordability. They ensure you’ve been paying your household bills in the last 12 months – they don’t just look at the income and commitments like a standard mortgage.
It is quite complicated, so we need to look at the whole picture because every client is different.
What documents do you need with four people on the same mortgage?
It’s the same as with one or two people, really. We just need your latest three months’ pay slips if you’re employed. If you’re self-employed, it’s the latest two years’ HMRC tax calculations and tax year overviews.
With both of those, we still need the latest three months bank statements and either a driving licence or passport.
Speak To an Expert
Buying a new home can be a stressful time for anyone. Our job here at Brick2Brick Mortgage Solutions is to make the process a lot easier, taking the stress out and making the clients journey smooth and so much more.
Does it cost to add someone to a mortgage?
With the traditional way of adding someone to the mortgage and the deeds, yes. You’d have to pay transfer of equity costs, where the conveyancing cost is around £300 to £400 at the moment.
If you are solely adding someone to the mortgage, as with Joint Borrower Sole Proprietor, they’re not legally added to the deeds, so there’s no legal cost to transfer the equity.
Do you pay stamp duty when adding someone to a mortgage? What other costs are involved?
I can’t offer any tax advice, so if someone is added to the deeds they would need to check the stamp duty implications on that.
If they’re only on the mortgage and not on the deeds, they will not be a legal owner of the property, so stamp duty shouldn’t come into it.
What are the pros and cons of having four people on a mortgage?
The main positive really is increased affordability, enabling more borrowing so you can afford a higher property value. You may also have a higher deposit, with more people chipping in.
Because there are more people on the mortgage, it could give you increased security – all four of you are responsible for it.
There aren’t many negatives. It’s just that a smaller selection of lenders allow this, so the deal might not be the best on the market. You wouldn’t be far off, though.
Which lenders offer mortgages to groups of four or more people?
At present, the main ones are Metro Bank, Leeds Building Society, Skipton Building Society and Barclays. There are others around, too [correct at the time of recording in March 2025].
How do I get a multi-applicant mortgage or a four-person mortgage? Can a mortgage broker help?
Just give us a shout out here at Brick2Brick. It’s the same as for a mortgage with one or two people – we just run through all the affordability, work out how much you can borrow and obtain all the required documents.
Then, when you find somewhere and get an offer accepted on a property, we’ll start the ball rolling. We’re with you all the way through. We’ll find the most suitable lender and support you until the day you move in.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
