Buying a new home with someone is exciting, and answering these questions could help ensure you’re on the same page about your mortgage and ownership.
According to an article in Estate Agent Today (24 January 2026), in 2024, 53% of first-time buyers applied for a joint mortgage. Traditionally, joint mortgages were held by couples. However, as rising house prices continue to affect affordability for single-person households, 7% plan to purchase a property with a friend and 9% with a family member.
Indeed, almost half (46%) of prospective first-time buyers under 35 said they would be open to buying with a friend or sibling.
Buying a home and taking out a mortgage are large financial commitments, so taking some time to set out how this will work could be crucial. Whoever you intend to buy with, these five questions provide a useful starting point for important financial conversations.
1. How will you split the deposit?
For many people buying property, saving the deposit is the first step. Typically, first-time buyers place a 10% deposit on their home, but it may be possible to find a mortgage that requires a lower deposit. You might also want to put down a larger deposit, which could help you secure a lower interest rate.
It’s important to discuss what size deposit you and your buying partner each have. If it won’t be equal, you could benefit from taking steps to protect your initial sum. For example, a declaration of trust is a legally binding document that outlines who gets what if the property is sold, and you can use it to state how the deposit was split.
Speaking to a solicitor could help you understand your options and what suits your needs.
2. Who will be responsible for the mortgage repayments?
If you default on your mortgage repayments, you could lose your home. So, it’s important to be clear about how you’ll share the responsibility.
A mortgage in principle is a non-binding estimate from a lender showing how much they might lend you. It isn’t a guarantee, but it could be useful when you’re setting a property budget and want to understand what your mortgage repayments are likely to be.
Again, if you won’t be splitting the mortgage or other household expenses 50/50, you might want to discuss how this will affect each person’s equity.
3. What type of ownership suits your needs?
There is more than one way to own property jointly. What’s right for you will depend on your circumstances. The two main options are:
- Joint tenants: You own the whole property together. If one of you passes away, the property would automatically pass to the survivor. This option is most commonly used by couples.
- Tenants in common: You each own defined, separate shares of the property. If you pass away, your share of the property would be passed on according to your will or intestacy rules. This option may be suitable if you’re buying the home with a friend, have children from a previous relationship who you’d like to inherit your assets, or if the financial responsibility is not split evenly.
A solicitor can advise on how to structure ownership.
4. Should you get a cohabitation agreement?
It might seem pessimistic to consider what would happen if your relationship breaks down or you need to sell the property you plan to buy, but it could be prudent.
A cohabitation agreement defines who owns what and how finances are handled. This could minimise disputes by creating an enforceable record of intentions. Should you decide to go your separate ways, it can provide clear guidance about how the property will be divided.
You can write your own cohabitation agreement. However, it’s often recommended that you work with a solicitor so that it’s legally binding.
5. Is there anything in your financial history that might affect your mortgage application?
If you’ll be taking out a joint mortgage, both of your financial circumstances and histories could affect the outcome. A poor credit report might lead to a lender rejecting your application or result in a higher interest rate.
Consequently, it’s important to review your own credit report and have an honest conversation with your buying partner about your financial situations to avoid unwanted surprises.
Red flags on your credit report don’t mean you won’t be able to secure a mortgage. You may be able to take steps to improve your report, and there are specialist lenders available. A mortgage adviser can work with you to assess your needs and offer advice.
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If you’re ready to buy a property and would like support with searching for a mortgage, please get in touch.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
