4 Person Mortgage
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4 Person Mortgage
Steven Hargreaves explains how a four-person mortgage works.
Can I get a mortgage with four people? Can a house be owned by four people?
It’s a yes to both questions. You can own a property with four people and you can get a mortgage with three other people – so four people in total.
It’s handy where property prices are very high, and lets you get onto the next rung on the ladder, if you like. Instead of buying a small terrace house or one bedroom flat, you take the next step up.
It means sharing with the other three people, but I’m assuming you’d know them well and that they’re reasonably trustworthy if you’re taking a mortgage out with them.
Can you get a mortgage with friends?
Yes – it can be family or friends. We once helped three nurses in Leeds buy a property together. They could get the house that they wanted, with three double bedrooms – they still live there a few years later on.
It worked out a lot better, because individually they would all be buying little one-bedroom properties – instead, they got a lovely three-bedroom house with plenty of accommodation upstairs and downstairs. They were work colleagues and friends rather than relatives.
How do mortgages with four or more applicants work?
The differences tend to be the way that lenders look at the income. In some cases, lenders only use the two highest incomes. So although there are four people on the mortgage, they’re not actually using four salaries.
However, some lenders will use all four. That makes a massive difference to affordability. The majority of lenders would use two incomes, or in some cases the two highest, but you’re usually doing this to borrow more money – so we would try and find a lender that takes all four incomes into account.
What deposit do you need and how much can you borrow with four people on a mortgage?
The deposit is exactly the same as if one, two or three people are buying the property. The lender would look at their criteria regarding the minimum deposit. Some lenders have specific deals regarding low deposits, but the majority of my clients put 5% to 10% down.
With affordability, how much you can borrow is very specific and a harder one to answer. I would need to know what the incomes are and whether we’re using four incomes or the two highest. The four incomes would certainly give you more affordability overall.
What documents do you need with four people on the same mortgage?
It’s exactly the same information for all four. I would need the last three months’ payslips, last three months’ bank statements, proof of the deposit and proof of identification.
In some cases, lenders want a P60 to show the last year’s earnings. If you’re self-employed we need your SA302s, tax overviews and tax calculations, or in some cases, your last two years’ accounts. The information required is identical compared to one person buying – we just need it four times over.
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Does it cost to add someone to a mortgage?
If four people are buying from the outset, it’s just assessed as four people and there are no extra charges. If there are numerous people on a mortgage and someone’s coming off it, that would involve a Transfer of Equity.
In some cases, there could be a stamp duty shortfall as well. Stamp duty would be payable not to be added to the mortgage, but to go on the property deeds.
Do you pay stamp duty when adding someone to a mortgage? What other costs are involved?
Yes, stamp duty could be payable. It depends on the value of the property. The other costs involved would normally be solicitor’s fees.
A lot depends on when you do it. I had a couple contact me late last week, where her mortgage is coming up for renewal at the end of December. We’re currently in August 2025.
She wants to put her new boyfriend on the mortgage and I explained that it’s best to do it at the same time as the remortgage.
That way, the cost will probably be between £200 and £250, whereas doing it as a standalone transaction the solicitor would charge £500 or £600.
What are the pros and cons of having four people on a mortgage?
The pro is affordability. You can take the next step up with the property. Instead of looking at a one-bedroom or two-bedroom home you can look at a four-bedroom property, which might be in a better area. You’ve also got shared costs for everything.
Perhaps you work in a big city and you need to be central, rather than in one of the suburbs 10 or 15 miles out. You might be able to afford that by going in with three other people.
On the downside, you need to know who you’re living with and what they’re like. You are signing up for a 20 or 30 year mortgage with them – are they trustworthy? Will they reliably pay the bills and the mortgage? Sometimes you can move in with somebody and they’re not the person you thought they were going to be.
Which lenders offer mortgages to groups of four or more people? Are there many?
The majority of high street lenders would offer a mortgage to a group of four, but may not use all four incomes.
It’s probably more important to look at which lenders offer mortgages using all four incomes – and that changes daily. We’ve currently got four lenders in that category, and a couple are high street banks.
If you’re in a group of four people looking for a home, get some mortgage advice. If you need to use all those incomes, you need to find the right lenders to give you the affordability. A mortgage advisor will work out which lenders would lend you more money and fit your circumstances.
How do I get a four-person mortgage, also known as a multi-applicant or multi-person mortgage? How can a mortgage broker help?
The reason to use a mortgage broker is to source one of those four lenders. The affordability will be almost double that of just two people’s incomes.
A lot of people look online to compare the interest rates – but that won’t tell you everything you need to know. If you’re wanting to borrow with three other people and use four incomes, it’s more important to find out which lenders will accept that.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
Useful Links
- First Time Buyer
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- 5 Percent Deposit Mortgage UK
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- Tips For Getting A Mortgage First-Time Buyer
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- Right to Buy Scheme
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- What is a product fee on a mortgage?
- Renovation Mortgage First Time Buyer
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- Parent Guarantor Mortgage
- Agreement in Principle
- Gifted Deposit Mortgage
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- 4 Person Mortgage
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- First-Time Buyer and Second-Time Buyer Mortgage
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