Sole mortgage with joint ownership (A guide)

In this brief guide, we are going to discuss sole mortgage with joint ownership.

Can you get a sole mortgage with joint ownership?

No, you cannot get sole mortgage joint ownership as almost every mortgage lender will not allow for someone who is on the title deed to not be a party to the mortgage.

The reason for this is pretty simple. If someone is not a party to the mortgage they could sell their shares of the property which the mortgage lender has an outstanding balance secured on.

This means they could essentially sell the mortgage lenders security and the asset the mortgage lender has lent on.

This could create serious issues for the mortgage lender if they want to repossess the home as there could be a third party who may prevent them from doing this and fully recovering the mortgage funds from a home repossession.

Although sole mortgages with joint ownership are not available, there are sole proprietor joint mortgages available,

In this case, the mortgage lender will assess the mortgage affordability of two people but only have one person on the mortgage deed.

Why could you want a sole mortgage joint ownership?

• Your co-borrower has bad credit and hence will fail mortgage affordability tests
• Your mortgage deposit is being funded by someone else and they want to be on the title deeds but not the mortgage
• You want to add someone who is below the age of 18 as the owner of a property but they cannot be on the mortgage due to being underaged and not able to ender a legal contract.

Use a mortgage broker

You may want to consider using an independent mortgage broker to get a mortgage.

Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases.

This could be over 11,000 mortgage products. This may have some advantages rather than going directly to a mortgage lender.

A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you based on your mortgage affordability.

After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle. 

This will allow you to shop for your home easier as more estate agents and sellers may take you seriously or it will give you confidence that your mortgage is indeed a possibility before you make a full mortgage application. 

Once you have found a home you want to buy and are satisfied with the mortgage offer for your mortgage then the mortgage broker will then look to get you a mortgage offer.

This will come with a key facts illustration document which details out the features of your mortgage including how much you will pay per month.

It will also contain information on if there are any limits such as early repayment fees, or annual overpayment limits.

If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer.

Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it.

They will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer and set a completion date with the seller or their conveyancer.

In this brief guide, we are going to discuss sole mortgage with joint ownership.

If you have any questions or comments please let us know.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.