If you buy a property in conjunction with a friend, family member, property investor or even a relative stranger, you are joint equity owners of that property.

If you take out a mortgage together then you will getting a joint mortgage or a joint income mortgage.

Top Tip

In many cases, sharing costs though joint ownership can even work out cheaper than renting! If you take mortgage advice you will be able to compare the cost of renting and compare it with the cost of a joint mortgage.

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Top Tip

Joint mortgage rights and responsibilities are important to understand as each month, the mortgage payment will need to be paid - however your personal circumstances may change. Mortgage joint ownership is not without its risks and these need to be fully understood.


Joint Income Mortgages

Joint ownership is sometimes also called joint equity - also sometimes mistakenly called shared ownership. Shared ownership is actually something different. Joint mortgages can mean the difference between buying a first home and not and in the UK joint mortgages are becoming more and more popular.

Having a joint mortgage means that you are both or all responsible for paying the mortgage payments. It does not matter to the mortgage lender who pays how much, as long as the monthly repayments or interest are paid to the lender.

More and more people are clubbing together to buy their own home. Securing a joint income mortgage enables them to get out of the rental trap and invest in their future because a joint income mortgage would be greater than a sole income one.

When you come to terminate the joint mortgage, you will be able to look at your records to see the proportions in which the remaining equity should be split. If any of the joint owners is unable to pay into the joint mortgage for any reason, the payments will still be required by the lender and alternative arrangements to pay the mortgage or reduce the amounts that need to be paid, should be made.

As joint mortgages are a developing trend, more and more mortgage lenders are offering mortgages designed specifically with joint owners in mind, and the choice of joint mortgages continues to increase. A typical example of what the mortgage lenders will lend is 3 x one person's salary plus 1 x each of up to three other joint owners.

Arrange an appointment with a mortgage advisor for joint mortgage advice for you and your group. However, every pair or group's situation will be different - each person may pay a different amount towards the deposit, or make different payments into the mortgage each month. Perhaps some will have parental involvement in the arrangement.

Also there are many types of mortgages available and various insurance policies that need taking into consideration. Joint mortgage protection of the payments would most likely be required.