Define: Joint Mortgage

A joint mortgage is a type of mortgage loan that is obtained by two or more borrowers who share ownership of the property and are jointly responsible for repaying the loan. In a joint mortgage arrangement, all borrowers are named on the mortgage agreement and are equally liable for making mortgage payments. This means that each borrower’s credit history and financial circumstances are considered in determining the loan terms and eligibility. Joint mortgages are commonly used by couples or family members who wish to purchase a home together, pooling their resources to qualify for a larger loan amount or better interest rates. However, it’s important to note that in the event of default or foreclosure, all borrowers are equally responsible for any outstanding debt, which could affect their credit scores and financial well-being.

A joint mortgage is simply a mortgage with more than one mortgagor. The person with the highest income is typically considered the primary borrower in a joint mortgage, though both (or all) of the mortgagors are equally liable for the debt on the property, even if someone moves out. How much you can borrow with a joint mortgage depends on both incomes. In a joint mortgage, you can typically borrow up to 2.5 or 3 times the higher income plus 1 times the lower income. Otherwise, those with a joint mortgage will work with lenders who prefer adding both incomes, then multiplying by 3.5. People who opt for a joint mortgage do not have to be married to the other mortgagor – friends, for example, may also apply for a joint mortgage.

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This glossary post was last updated: 29th March 2024.