Buying a Home with Friends | Pros, Risks & Expert Advice

For many first-time buyers, the dream of homeownership can feel out of reach, especially in today’s market.

However, what if we told you there’s a growing number of people who are buying a house with a friend?

It might not be the traditional route, but buying a house with friends is becoming an increasingly popular way to overcome the affordability hurdle, and it's one we think more buyers should know about.

Why buy a house with a friend?

With rising house prices, saving a big enough deposit or getting a mortgage offer based on just one income can be tough.

However, when you buy a house with a friend (or even more than one), you’re combining incomes and sharing the costs, whether it be for the deposit or the monthly mortgage repayments, and even the bills once you’ve moved in!

It’s a way to get more home, more quickly, without waiting years to do it by yourself.

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Can I get a joint mortgage with a friend?

Many first-time buyers are surprised to learn that lenders are open to the idea of people getting a joint mortgage for a friend. In fact, some specialist mortgage lenders even design products specifically for buyers pooling resources.

Take Generation Home, for example. They allow buyers to team up with friends, family or partners to co-own a property. Their flexible mortgage options also mean you can own different shares of the home if your contributions aren’t equal.

Others, like Skipton, Accord and Metro Bank also allow multiple applicants with the right setup.

That said, mortgage criteria can vary a lot between lenders, which is why getting advice from a specialist broker is essential before trying to get a joint mortgage with a friend.

You don’t have to split everything 50/50

Are you worried about buying a house with a friend because you’ve saved up more money than them, or that you’ll be paying different amounts toward the mortgage? That’s completely normal, but also totally manageable.

You can agree upfront who owns what percentage of the property, and this can be recorded legally in a Declaration of Trust. This simple but powerful document spells out exactly who contributed what, who owns what share, and what happens if one of you wants to sell up in the future.

You can also choose whether to be joint tenants (owning the whole property equally) or tenants in common (owning defined shares). Most friends buying together choose the second option, especially when their deposits or contributions differ.

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It’s important to talk through the ‘what ifs’

Let’s be real: life changes. Jobs, relationships, cities and even sometimes even friendships.

So, before you dive in, it’s worth having an open, honest chat with your friend(s) about the long-term plan.

• What happens if one of you wants to sell?

• Can either of you afford the mortgage on your own if things change?

• Will you both live there or will one rent their share?

These questions aren’t meant to scare you, but quite the opposite. Talking through scenarios early when buying a property with a friend means you can make clear agreements and protect your friendship as well as your finances.

A mortgage broker who understands these kinds of setups can help you think through all of this and connect you with solicitors who’ll help get everything in writing.

It’s more common than you think

Buying a house with friends used to be seen as a niche option, but that’s changing fast. In fact, many housebuilders (including Avant) now regularly speak to buyers who are co-purchasing with a friend or sibling.

And we’re all for it, because if it means you can take that first step onto the ladder sooner, with a little more space or in a better location, why not?

Plus, you’ll still get access to the same incentives and offers available to other first-time buyers, including deposit contributions, flooring packages, or help with legal fees, even if they’re not specifically tailored to joint purchases.

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Talk to an expert before you take the leap

Buying a home with a friend is exciting, but it’s also a big commitment. That’s why it can be useful to speak to a mortgage specialist who’s done this before.

At James Leighton Financial Services, we’ve helped lots of buyers team up to make their homeownership dreams a reality, and we’d love to help you too.

Buying a house with a friend FAQs

How many people can buy a house together?

In England and Wales, the limit of people who can be named as legal owners of a property is four.

As for Scotland, there is no legal fixed limit, but it’s worth remembering that the more people are involved, the more complicated the purchase can become, especially if a mortgage is being taken out.

Do you need a Declaration of Trust when buying a house with friends?

While it isn’t necessary to put together a Declaration of Trust, it is strongly recommended, especially if budgets between buyers vary.

This is because it records ownership shares, helps protect individual investments, avoids potential disputes down the line and clarifies responsibilities from the outset.

Can one friend rent out their room?

While it is possible for one of the owners to rent out their room, there are a few caveats, notably that other co-owners must explicitly consent to it.

Furthermore, if the home has been bought with a mortgage, the lender will need to give formal permission, as most residential mortgage terms forbid subletting or renting rooms.

Who makes the offer when buying a house with friends?

One person in the group can make an offer on behalf of the rest, but the amount should be pre-agreed by everyone. It’s important that everyone understands all the costs, including maximum budgets and deposit splits.