First-Time Buyer Joint Mortgage

Buying your first home can feel daunting, especially when property prices are high and your income on its own doesn't quite stretch far enough. That's where a first-time buyer joint mortgage can make a real difference.

A first-time buyer joint mortgage lets two people purchase a property together, combine incomes to boost borrowing power and qualify for a larger mortgage.

Speak to our expert mortgage brokers in London today at 020 3813 7800 and let us guide you through every step of your joint mortgage journey.

Our mortgage broker will explain how joint mortgages work for first-time buyers, what the benefits are, and everything else you need to know about joint mortgages.

Table of Contents

What Is a Joint Mortgage for First-Time Buyers?

A joint mortgage allows two or more people to apply for a mortgage together, combining their incomes to boost borrowing power. This can be a game-changer for first-time buyers who might struggle to get on the property ladder alone.

When you apply jointly, lenders look at your combined income, which often means you can borrow more than you would on your own. However, with the increased borrowing potential comes shared responsibility. Everyone named on the mortgage is jointly liable for repayments, even if one person stops paying.

What Are the Key Benefits of a Joint Mortgage?

A joint mortgage offers several key benefits, especially for first-time buyers. By combining incomes, you can significantly increase your borrowing power, making it easier to afford a better property or enter the housing market sooner.

It also allows you to share the deposit, monthly repayments, and other buying costs, making the process more financially manageable. If both applicants are first-time buyers, you may also qualify for Stamp Duty relief. Plus, joint mortgages offer flexible ownership options and shared responsibility, providing both financial and emotional support throughout the home-buying journey.

1. Increased Borrowing Power

By combining your incomes, lenders are usually willing to offer a larger mortgage than if you applied alone. This could help you afford a better home or get on the ladder faster.

2. Shared Deposit and Costs

You and your co-applicant can split the deposit, legal fees, and moving costs, making it more financially manageable for both parties.

3. Improved Mortgage Affordability

With two people contributing to the repayments, it's often easier to afford monthly mortgage payments, especially when compared to renting or buying alone.

4. Better Property Options

A higher combined borrowing amount may allow you to look at properties in better locations or with more space, which might have been out of reach solo.

5. Stamp Duty Relief (for First-Time Buyers)

If both applicants are first-time buyers, you may qualify for Stamp Duty relief, saving thousands on your property purchase.

6. Flexible Ownership Options

You can choose between joint tenants (equal ownership) or tenants in common (unequal ownership), depending on how much each person contributes.

7. Shared Responsibility

Repayments, decisions, and property upkeep are shared responsibilities, which can ease pressure, especially for younger buyers or couples.

8. Support Through the Process

Buying a home can be stressful, but doing it with someone else gives you emotional and practical support throughout the journey.

How Ownership Works: Joint Tenants vs Tenants in Common

When you buy a property together, you need to decide how you'll own it:

• Joint Tenants: You both own the whole property equally. If one person passes away, the property automatically goes to the other.
• Tenants in Common: You can own different shares of the property (e.g., 60/40). This option is often used when buyers contribute different amounts to the deposit.

It's highly recommended to get legal advice before deciding, as this will impact your financial and legal responsibilities later on.

Who Can Get a Joint Mortgage?

You can take out a joint mortgage with:

• A partner or spouse
• A friend
• A relative (like a parent or sibling)

Some joint applicants will live in the property together, but not always. In some cases, a family member may help with affordability but not plan to live in the home.

Can Only One Person Be a First-Time Buyer?

If one person has previously owned property, you won't qualify for first-time buyer stamp duty relief, even if the other applicant is a first-time buyer.

Example:

• Partner A has never owned property (a true first-time buyer).
• Partner B previously owned a flat.

Because Partner B has home ownership history, the couple loses first-time buyer status as a pair. Standard stamp duty rates will apply, potentially adding thousands to the cost of buying.

However, if the more experienced buyer brings a larger deposit or stronger credit history, that could help the mortgage application overall.

Can You Get a Joint Mortgage with a Guarantor?

Yes, if someone wants to help you get on the property ladder but doesn't want to be a co-owner, a guarantor mortgage could be a good option.

A guarantor (usually a parent or close relative) agrees to cover repayments if you can't. This can be useful if:

• You have a small deposit
• You're in a new job
• Your credit history isn't perfect
• You're struggling to meet affordability on your own

Important: Guarantors must get independent legal advice before the mortgage completes.

What Is a Joint Borrower Sole Proprietor Mortgage?

This is a more specialised type of mortgage where:

• Two people are responsible for the mortgage repayments
• But only one person is the legal owner of the property

It's ideal when a family member wants to help with repayments, but doesn't want to be listed on the property deeds, this can be helpful for tax or inheritance planning.

Not all lenders offer this option, so it's best to work with a broker if you're considering it.

Can a Joint Mortgage Be Transferred to One Person?

Yes, it's possible to remove someone from a joint mortgage, but only if the remaining person can afford to take over the mortgage alone.

Typical scenarios include:

• A relationship breakdown
• One person wants to move out or buy elsewhere

You'll need to go through affordability checks again, and your lender will have to approve the change.

How Do You Calculate Borrowing for a First-Time Buyer Joint Mortgage?

At Infinite Finance London, we start by:

1. Reviewing your combined income
2. Checking your monthly expenses and debts
3. Assessing your deposit size
4. Comparing what different lenders will offer you

Every lender treats affordability differently, so getting the right advice early can save you a lot of time and money.

How Much Can You Borrow as a First-Time Buyer with a Joint Mortgage?

Lenders usually let you borrow up to around 4.5 times your combined annual income, although some may offer more based on affordability.

You'll also typically need a minimum 5% deposit, though a larger deposit can:

• Reduce your interest rate
• Improve your chances of approval
• Increase how much you can borrow with some lenders

Every lender has different rules, so speaking with a mortgage advisor can help you find the best fit for your situation.

How Can a Mortgage Broker Help?

Navigating the mortgage market as a first-time buyer, especially with a joint application, can feel like a minefield.

A good mortgage broker will:

• Work out exactly how much you can borrow
• Compare lenders and rates tailored to your unique situation
• Help you avoid common pitfalls
• Offer guidance on legal documents, stamp duty, and ownership types

Need Help with Your First-Time Buyer Joint Mortgage?

A first-time buyer joint mortgage can make homeownership more achievable. By combining income, sharing responsibilities, and understanding your legal rights, you'll be better positioned to make a smart and informed decision.

Our mortgage brokers in London can simplify the process by comparing lenders, assessing your joint affordability, explaining ownership options, and guiding you through the legal and financial aspects.

If you're unsure about your next steps, speak to our mortgage advisor in London, who can guide you through the process and help you find the best deal based on your joint financial situation.

Looking for expert advice on joint mortgages for first-time buyers? Contact Infinite Finance London today on 020 3813 7800 for expert guidance.