Joint Mortgage With Parent

Can I get a joint mortgage with my parents? How does it work?

Yes, a joint mortgage with parents is possible and there are a couple of ways in which you can do this. It could be a standard, straightforward mortgage with parents – as you would arrange if you were purchasing with a partner. In this situation, you would all own the property.

Alternatively, you can get a Joint Borrower Sole Proprietor (JBSP) mortgage. These work slightly differently, where both people are on the mortgage, but only one applicant is the proprietor of the property.

Will I miss out on a First Time Buyer discount if I get a joint mortgage with my parents?

Potentially. For example, if your parents are already homeowners, you would miss out on any First Time Buyer discount. There may also be additional stamp duty charges. But if you opted for a JBSP mortgage, you could potentially avoid these charges and still qualify as a First Time Buyer.

What’s the difference between joint tenants and tenants in common?

With joint tenants, two people own the whole property together – not a specific share – and they have equal ownership. If one person were to pass away, the property would then be fully owned by the other borrower.

Tenants in common is when each owner holds a specific share, such as 50-50. If one owner passes away, their share goes to their estate – it doesn’t automatically pass to the other owner.

What deposit do you need for a joint mortgage with a parent? How much can I borrow for a joint mortgage with parents?

Typically you would need a minimum deposit of 5%. If your parents are already homeowners, you may need a larger deposit, depending on the lender’s criteria. Normally you can borrow between four to five times your total income, but credit commitments can reduce this figure.

If, for example, your parents have a mortgage of their own, this will reduce your maximum borrowing as it would have to be keyed in as a commitment.

What eligibility criteria do we need to meet for a joint mortgage with my parents?

Eligibility criteria varies from one lender to another. The main sticking point with this type of application is parents’ ages restricting the term length, which can make monthly payments more expensive.

Most lenders will go up to age 75 on earned income and some lenders will go up to age 80 on pension income. In a nutshell, it’s best to speak to a mortgage broker like ourselves, and we will do the research.

Does a joint mortgage with parents have to be 50-50?

No, it doesn’t need to be 50-50. You can choose to have a different ownership type, which we briefly touched on earlier. This would mean you could own a different percentage.

It’s best to seek legal advice if you want to proceed this way. It may also need to be approved by the mortgage lender upon completion.

How will my parents’ age impact our ability to get a joint mortgage? What’s the maximum age?

Age can impact your ability to get a joint mortgage as there may be restrictions on term length. Most lenders now allow you to go up to age 75 on mortgages, although lenders are reviewing their criteria all the time.

I do know a lender that may stretch to age 80 on earned income [information correct at the time of recording in June 2025].

Can my parents pay the full deposit and also be named on a joint mortgage? Would this be classed as a gifted deposit?

Yes, there’s no reason why your parents can’t gift you the full deposit as they’re all named on the mortgage. Technically speaking, as they are on the mortgage, it wouldn’t be classed as a gifted deposit – as they will jointly own the property on completion.

What happens if you have a joint mortgage with parents and they die?

It’s never nice to talk about this type of circumstance, but it is really important to have this discussion when getting a mortgage with parents.

The best solution is getting mortgage protection. You can do this for the full mortgage balance or, if cost is an issue, you can take out a policy that would bring the mortgage balance down to a figure that is affordable. The remaining borrower can then continue to repay the mortgage at an affordable level.

Is getting a joint mortgage with my parents a good idea? What are the advantages and disadvantages?
It depends on your circumstances. The advantage is that adding your parents’ income could boost your potential borrowing significantly – and help you get on the mortgage ladder.

However, most lenders have maximum age criteria, which could restrict the term length and mean your mortgage repayments could be a lot higher.

How do you apply for a joint mortgage with parents? What’s the process?

The process is no different to any other mortgage. We’re going to need the usual documents: proof of income, bank statements, proof of deposit and identification.

Your mortgage broker will just guide you through the process as per a standard application.

How can a mortgage broker help here? Have you got anything else to add?

It’s really useful to speak to a mortgage broker and use their guidance and wisdom around the best solution for you. We’ll explain the pros and cons of the scenario and emphasise clearly any risks around the proposed transaction.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.