First Time Buyer Joint Mortgage
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First Time Buyer Joint Mortgage
Adam Nunn and Jon Porter explain how a joint mortgage works for First Time Buyers.
How do joint mortgages work for First Time Buyers?
You’re applying for a mortgage together, which means you’re being assessed on both of your individual circumstances. Lenders take into consideration your personal details, your sources of income, your credit commitments and credit history.
One of you might have an excellent credit history, but the other might not – and unfortunately, lenders assess you on the worst case scenario. That can influence the types of mortgage options you have in that situation.
A key point here is that you’re both jointly and solely liable for that mortgage. Between the two of you you must ensure the mortgage payments are made, even in unforeseen circumstances, like redundancy, time off work due to ill health, or if you end up separating.
My partner is a First Time Buyer, but I’m not. What are my options?
You wouldn’t be able to get a First Time Buyer mortgage from most lenders. They will obviously assess everything on your own individual circumstances.
We would need to get an understanding of the background for the non-First Time Buyer – have they got property they’re keeping and renting out? Perhaps it’s an inherited property, or they are selling which could mean there are additional costs to consider. We’d go through all that with them.
Do both buyers have to be First Time Buyers? Do couples lose First Time Buyer status if one partner bought in the past?
If you’ve ever owned a home, you’re not classed as a First Time Buyer. As it stands today in July 2025, the transaction wouldn’t qualify for First Time Buyer stamp duty relief.
But some lenders may actually treat you as a First Time Buyer in terms of interest rates, product ranges or criteria. That can be quite key. For example, if one of you has owned a property but hasn’t had a mortgage, or you sold the property more than three years ago, you may still get First Time Buyer offers.
In that case, you can borrow more money, or perhaps get cashback to help with moving costs.
Do I have to pay stamp duty if my partner is a First Time Buyer, but I’m not?
Yes, unfortunately you do.
What does being joint tenants or tenants in common mean?
When you buy a property together, you have a choice of how you own the property. That might be influenced by how much you’re individually contributing towards the deposit. If one of you is contributing a lot more than the other, you may wish to protect your share within that property.
As joint tenants, you own the property equally. If one of you was to pass away, the other person has ‘right of survivorship’, which means your share of the property would automatically pass to them.
If you were separating or selling and moving, you would legally be entitled to an even share of the equity.
With tenants in common, you own specific shares in the property. If one of you put in 40% towards the deposit and the other put in 60%, you could protect those contributions. In that scenario, if one of you were to pass away or you sell the property, you would legally receive your share based on an agreement drawn up when you first bought it.
One extra point to add is that if you do own a property, it’s always good to have a Will – regardless of your situation. If you own a property as tenants in common, that’s even more important. If one of you was to sadly pass away, your Will stipulates what you want to happen to your legal share of the property.
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Can I get a mortgage with a guarantor?
Guarantor mortgages are a thing of the past. This type of arrangement is more commonly known as Joint Borrower Sole Proprietor, which we’re going to speak about next.
What is a Joint Borrower Sole Proprietor (JBSP) mortgage?
It essentially means joint mortgage, sole ownership. It’s a solution to borrow more money by utilising someone else’s income, without compromising the ownership status of the property.
It’s most commonly used where parents are helping out children, although it can be the other way around.
Here’s why it’s important that you don’t compromise the ownership. If a parent already owns a house and jointly buys a house with you, you lose your First Time Buyer status. The transaction would actually incur additional property stamp duty, which is a hefty taxation.
With a JBSP, parents are able to use their income to help their children buy a property that they couldn’t afford by themselves. But they aren’t named as owners of the property. This way, as a First Time Buyer, you potentially qualify for stamp duty reliefs.
How much can you borrow as a First Time Buyer with a joint mortgage? How do you calculate a First Time Buyer joint mortgage?
Affordability is all assessed via the calculators for each individual lender, but most providers limit the borrowing to around 4.5 times your assessable income.
However, it depends on the individual circumstances for the clients, plus specific lender criteria. Some lenders offer enhanced income multiples of up to 5.5 times or even six times income.
How much deposit do I need for a joint mortgage?
We actively encourage people to be saving for a minimum of 5%, and ideally more. The larger the deposit, there’s less risk to you, less risk to the lender and interest rates are typically better.
However, over the last year or so we’ve started to see more lenders enter the market with below 5% deposit options. There is currently a zero deposit option, a 1% deposit option and a 3% deposit option. Lenders are actively coming up with new ways to help people get into the property market [information correct at the time of recording in July 2025].
Can you transfer a joint mortgage to one person?
You can. It obviously depends on the reasons. You can transfer both the mortgage over to one person and also the ownership of property.
Your current lender would need to assess the individual circumstances, affordability and lending criteria, or you can remortgage to another lender. It’s always a case of meeting the individual lender’s criteria and affordability assessment.
You then go through the legals, taking into consideration the cost implications of that and potential stamp duty issues, as well.
Can I get a joint mortgage as a First Time Buyer if I have bad credit?
Yes, potentially. It very much depends on the extent of the bad credit, what type it is, how recent it was and whether it has been settled. If you have bad credit, deposit requirements can be higher.
You might find yourselves with fewer lenders and probably not those offering zero or low deposit deals. The key thing to understand in this situation is that one of you could have perfect credit and one could have a history of bad credit. Unfortunately, you have to find a lender suitable for the person with the worst credit.
During our initial consultation, we will always request a credit report from each applicant, so we can identify any bad credit, explore the details and then complete thorough research for you. We then give you a recommendation as to your lending options.
If you’re not in a position to currently obtain a mortgage, we can guide you on how to improve your credit situation and how long it will be until you’re ready.
How can a mortgage broker help me get a joint mortgage as a First Time Buyer? Any final thoughts?
As mortgage advisors we guide people and hold their hand throughout the whole process. It’s not just about getting people into this nice, large debt. It’s about protecting that debt. It’s about helping you through the legals. It’s about offering full advice based on our experience.
I’m old. I’ve got 20 years’ experience in this business. Adam’s a lot younger than me and has around 10 years’ experience. We love helping First Time Buyers and teaching them the steps – so they know what they’re doing in regards to everything.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
For specialist tax advice, please refer to an accountant or tax specialist.