Credit Score Basics > Can you have more than one joint mortgage?

Can you have more than one joint mortgage?

Wollit Team2 minute read · Updated 4th July 2024

In the UK, joint mortgages are a common way for couples to buy a property together, combining their incomes and securing a larger amount of borrowing.

However, let’s see what happens when you want to have more than one joint mortgage.

What is a joint mortgage?

A joint mortgage is a type of mortgage where two or more people, usually a couple, apply for a mortgage together.

The key thing to remember about a joint mortgage is that all applicants are liable together for the mortgage repayments. This means that if one applicant can’t pay their share, the other applicants are responsible for the full amount.

Can I have more than one joint mortgage?

Depends what for. A residential mortgage? Generally no, with very few exceptions. But a buy-to-let one? In most cases, yes, and without any restrictions. Here’s why.

In the UK, there are no legal restrictions preventing you from having multiple mortgages. However, most lenders have specific criteria that could limit your options after getting your first mortgage. Most lenders will actually want to see evidence that you intend to reside in all the properties you seek mortgages for.

Also, each mortgage application must meet the lender's criteria, including passing affordability assessments and credit checks. Income verification is needed to show that you can actually make repayments on each mortgage. As the number of mortgages increases, the financial commitments also accumulate, making it less likely that you’ll be able to afford more than a few mortgages at the same time.

In short, when it comes to residential mortgages, while in theory you can have more than one joint mortgage, in practice you’ll have to give evidence that you’ll actually split your time living between multiple homes, and that you can of course afford repayments.

On the other hand, when it comes to buy-to-let mortgages, you can have as many joint mortgages as you can.

Lenders view these as investments, so you can have any number of them. You’ll just need to collect rent and meet the mortgage payments.

What can influence the lender’s decision to approve a second joint mortgage application?

Several factors can impact the decision to approve your application for an additional joint mortgage:

Whether you can afford it. Joint mortgage applications typically combine the incomes of all applicants. This can increase the amount that can be borrowed, but it also means that all applicants must meet the lender's income requirements.
Whether you have enough saved up for a deposit. A second mortgage is riskier for the lender, and they might only offer a loan-to-value (LTV) ratio of 75% or even less.
The lender’s policy. Different lenders have varying policies regarding joint mortgages. Some may offer joint mortgages for more than two people, while others may have specific requirements for the relationship between the applicants.
Your reason for a second joint mortgage. If it’s residential, then be prepared to explain how you will split your time between two homes. If buy-to-let, then be ready to show a plan to rent it out profitably.
Your credit scores. A joint mortgage application involves a credit check for all applicants. If one of you has a poor credit score, it can affect the entire application. You might have to pay higher interest rates or even be rejected outright.

This is why it’s so important to improve your credit score. Luckily, now there are many apps that can help you build and improve credit.

One such app is Wollit. Wollit is an app available both on Android and iOS, and it works by reporting a fixed-fee monthly subscription as a loan repayment to all three credit reference agencies.

This helps you build your credit history, directly influences your credit score, and can offer you a way to improve your credit rating so that you can get approved for a joint mortgage on terms that are affordable for everyone involved.