3 Person Mortgage
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3 Person Mortgage
Steve Murphy explains how a three-person mortgage works.
Can you have a three-person mortgage? Can three people be on the same mortgage?
Yes, three people can be on a mortgage together, and jointly own the property as well.
Can you get a mortgage with friends?
Yes, there are no restrictions on the relationship between mortgage customers. You can get a mortgage jointly with family, friends, or anyone you want.
On a mortgage with more than two people, however, some lenders may have restrictions on the relationship between each of you, with some only allowing close family relations to be included as the third or fourth applicant.
How do mortgages with three or more applicants work?
A three-person mortgage works in the same way as a mortgage between one or two people, in principle. However, lenders have different rules on how many individuals’ incomes they actually take into account when calculating how much to lend.
Most lenders will only take into account the largest two incomes, but some will use all three, so with those lenders, you can borrow more.
What deposit do you need, and how much can you borrow with three people on a mortgage?
You can potentially get a three-person mortgage with a 5% deposit. The amount you can borrow will entirely depend on the income levels of the applicants, as well as the types of income.
Some lenders will only take into account the biggest two incomes rather than all three, but if you find the right lenders, you can use all the incomes and borrow much more.
What documents do you need with three people on the same mortgage?
Each individual would normally have to provide documents – that’s no different with a three-person mortgage. Typical documentation would be proof of identification and proof of your income, such as payslips, and maybe bank statements as well.
Does it cost to add someone to a mortgage?
Yes, if you add someone to a mortgage partway through, there’s a cost. It comes in the form of an administration fee with the lender, as well as a cost from a solicitor to add the new person to the property title.
Do you pay stamp duty when adding someone to a mortgage? Are there any other costs we need to know about?
You may have to pay stamp duty when adding someone to the mortgage if they are also being added to the property title at the same time. This would be in addition to the administration fee from the lender and the solicitor’s fees we mentioned before.
The amount of stamp duty will entirely depend on the amounts involved and the size of the mortgage.
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What are the pros and cons of having three people on a mortgage?
The main pro is potentially being able to borrow more, as well as having three people share in the benefits of home ownership, like any increases in the property value.
The main disadvantage is what to do when one of the three wants to buy somewhere else. That individual may find that their ability to borrow for another property is reduced by the existing mortgage with the other two.
You need to consider at the outset what the exit strategy will be, before getting into a mortgage like this. Make sure everyone understands what would happen if one of you wants to go.
Which lenders offer mortgages to groups of three or more people? Are there many?
Most lenders, or a very large number, will allow more than two people on a mortgage. But a much smaller number would take more than two incomes into account to increase the borrowing power.
An example of lenders that can do that are Skipton Building Society, Darlington, Dudley Building Society, Stafford Building Society, Metro Bank, Gen H, and others as well [information correct at the time of recording in January 2026].
How do I get a three-person mortgage or a multi-applicant mortgage? How can a mortgage broker help here?
A broker can help by searching the market for the most suitable mortgage, taking into account the cost as well as the lender’s criteria. This can potentially save a lot of wasted time in applying for mortgages that may not be very competitive, or may get declined at the point of a full application.
Key Takeaways:
- Three people can be on a mortgage together, and they can jointly own the property.
- Most lenders will only consider the largest two incomes when calculating the borrowing amount. However, some lenders will use all three incomes, which allows for potentially borrowing more.
- While there are generally no restrictions on who can apply together (family, friends, etc.), some lenders may restrict the third or fourth applicant to only close family relations.
- Adding someone to an existing mortgage partway through involves an administration fee from the lender, solicitor’s fees, and potentially stamp duty if the person is also being added to the property title.
- A main disadvantage is the reduced ability of one individual to borrow for another property while still on the existing mortgage. Therefore, an exit strategy must be considered and agreed upon by all parties at the outset.
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What you need to know…
The actual amount you can borrow will depend on your credit commitments, your regular monthly outgoings and how each lender assesses your income.
Lender’s affordability checks can differ meaning that the amount you can borrow may change from lender to lender. That’s where the expertise of our personal advisers comes in and where our independent status benefits you.
The minimum deposit required is 5% of the property purchase price. Most lenders will allow the deposit to come from a gift and some lenders will even consider this being raised via a personal loan. There are government incentives to help boost your savings if you are a first time buyer. Depending on your circumstance you may either need to have a larger deposit or will perhaps want to put a larger deposit down, due to preferable interest rates.
Because we are independent mortgage brokers we will be able to secure you the best deal for your circumstance.
An Agreement in Principle, also known as a ‘Decision in Principle’ will be provided after affordability and credit checks have been approved. An Agreement in Principle is extremely useful to increase your confidence when viewing and offering on properties. Estate Agents will typically want to see an Agreement in Principle before presenting your offer to the seller. Our personal advisers can help you with this.
It’s a requirement of your mortgage to have buildings insurance. This covers the bricks and mortar of the property.
It’s also a good idea to take advice from your personal adviser on protecting you and your loved ones if something bad happens. For example: Life Cover, Critical Illness Cover and Income Protection.
Being accepted for a mortgage does depend on your circumstances. We are experts with all types of mortgages…. We specialise in obtaining mortgages for the self-employed, contractors, construction industry scheme (CIS) workers and those with historic adverse credit (as well as employed people of course). In all these situations we can frequently secure high street deals. Being independent and experts is a real benefit in these circumstances.
Your monthly payments will vary depending to your chosen mortgage term, choice of mortgage product, how much deposit you have and repayment type. It is best to chat with a personal independent adviser to find out exactly what interest rate and term you can secure to give an accurate monthly payment.
Most of the first time buyers we have helped secure a mortgage are paying less on their mortgage than they used to pay on rent. This does, however, depend on circumstances. The mortgage term chosen is a major factor which can be dictated by your age and intended retirement age. Of course, it is also worth noting you are paying back the mortgage and once it is repaid you won’t have any rent to pay.
There are costs associated with purchasing your first home. You will need to pay legal fees and other potential costs include a survey fee, stamp duty (which is a property land tax) and administration fees. There are First Time Buyer government incentives on savings and stamp duty that can help you with raising the monies for a deposit, costs and reducing stamp duty. Our personal advisers can give guidance within a free consultation.