Buying a home with friends or another household is an increasingly common way to step onto the property ladder in 2026. Bank Rate was 3.75% when this article was published in July 2026; whatever the rate, combining multiple incomes can make higher property prices more accessible. Most UK lenders allow up to four people to be named on a mortgage, though how they calculate your borrowing power varies.
How many people can be on a joint mortgage?
Standard UK mortgage regulations allow a maximum of four applicants to be named on the mortgage and the property's title deeds. While all four are legally responsible for the debt, lenders usually only consider the income of the two highest earners when calculating how much you can borrow.
However, a growing number of specialist lenders now consider the combined income of three or even all four applicants. This can significantly boost your budget. For example, two friends earning £30,000 each might borrow £270,000 (4.5x income). Four friends earning £30,000 each could potentially access a loan upwards of £500,000 with the right provider.
Comparison: Joint Tenants vs Tenants in Common
When buying with friends, how you hold the property legally is a critical decision. You must choose between these two structures:
| Feature | Joint Tenants | Tenants in Common |
|---|---|---|
| Ownership | Equal share (50/50) | Can be unequal (e.g., 70/30) |
| Inheritance | Passes to other owners automatically | Can be left to anyone in a Will |
| Best For | Married couples | Friends or business partners |
| Sales proceeds | Split equally | Split based on ownership shares |
Pro Tip: Always choose 'Tenants in Common' when buying with friends. This allows you to specify exactly who owns what percentage of the property, which is vital if you haven't contributed equal deposit amounts.
What is a Deed of Trust?
A Deed of Trust is a legal document drawn up by a solicitor that records who put what into the property. If one friend contributes £20,000 to the deposit and another contributes £5,000, this document ensures they get those specific amounts back when the house is sold.
It can also outline how monthly costs like the mortgage, utility bills, and repairs are split. In 2026, following recent FCA mortgage reforms focusing on consumer protection, lenders and brokers are more proactive in ensuring these legal safeguards are in place for multi-applicant loans.
The Joint Borrower Sole Proprietor (JBSP) option
A JBSP mortgage allows multiple people to be on the mortgage (responsible for payments) without all of them being named on the property deeds. This is often used by parents helping children, but it is also available for friends.
This structure can be tax-efficient. If one friend already owns a property, being a 'joint borrower' but not a 'sole proprietor' means you might avoid the 3% Stamp Duty surcharge that usually applies to second homes. You can check how this affects your costs using our calculators.
Why do friends buy together?
The primary motivation is affordability. By pooling resources, you can:
- Secure a larger deposit, leading to best mortgage rates at lower LTV bands.
- Share the burden of rising service charges and council tax.
- Live in a larger property or a more central location than you could afford alone.
Potential risks and exit planning
While buying with friends offers financial benefits, it requires high trust. Since you are 'jointly and severally liable,' if one friend loses their job and cannot pay their share of the mortgage, the lender will expect the remaining owners to cover the full amount.
We recommend having a written 'exit strategy' before you apply. This should answer:
- What happens if someone wants to move out or sell their share?
- How will the property be valued for a buyout?
- What is the process if someone wants to bring a partner into the home?
Pro Tip: Look into income protection insurance. If one of the group becomes too ill to work, the insurance payout can cover their share of the mortgage, protecting the whole group from falling into arrears.
Lenders who allow 3 or 4 applicants
While high-street names like Barclays and Halifax allow four applicants, specialized lenders like Generation Home or Metro Bank often offer more flexibility in how they treat multiple incomes. As brokers, we have access to 90+ lenders and can identify which ones will actually count all four salaries toward your borrowing limit.
What I tell my clients
"Whenever a group of friends approaches me, I always stress that you are financially tying yourselves together. Your credit scores will be linked. I tell them to be brutally honest about their spending habits and future plans. It’s not just a mortgage; it’s a business partnership that happens to share a kitchen. Get the Deed of Trust signed before you exchange contracts—no exceptions."
— Matt
How to start the process
If you are considering buying with friends, your first step should be to establish your combined budget. You can explore our mortgage guides to understand the general process or look at remortgage options if you are looking to buy out an existing friend from a shared property.
We provide free initial advice to help you navigate the complexities of multi-household applications. If you choose to proceed, we will handle the paperwork and liaise with the lenders for you.
Contact us today to discuss your situation with an expert adviser.