‘Mates Mortgages’: A Good Option for Single People?

Will Mates Mortgages Help You Get onto the Housing Ladder Faster?

It’s no secret that getting a mortgage is pretty difficult for single people these days. Studies show that us single people often spend up to 92% of our disposable income just on living expenses thanks to the single tax. While paying for a mortgage can be up to £42 cheaper each month on average than renting a similar property, owning a home of your own comes with its own challenges.

There’s the headache of figuring out how to save for a deposit on a single income, and you need to show mortgage lenders that you can actually afford your repayments. Joint mortgages, offering the opportunity to split your mortgage costs between two people (or more), can seem like an excellent alternative. But what if you don’t have a partner to split your home with?

That’s where a “mates mortgage” comes in.

So, can you get a mortgage with a friend, what does it entail, and most importantly is it a good idea? We’ve done the research for you in this ultimate guide to mates mortgages for single people.

What is a Mates Mortgage? The Basics

There’s no such thing as an official “mates mortgage” – at least, we can’t see any evidence of these being advertised by major mortgage lenders.

Essentially a mates mortgage is just a joint mortgage that you choose to take out with a friend or family member (rather than a spouse or partner). Most lenders offer two forms of joint mortgage:

• Joint tenants: A mortgage agreement that gives equal control to both parties in a mortgage. If a tenant dies, the property rights will be passed to the next owner. In other words, you can’t just pass your home along to a loved one in your will.

• Tenants in common: As many as 4 people can share “tenants in common” rights in an individual property, and they can all own different shares of a property. They can also act individually, leaving their shares to whoever they like in a will.

Just like any other type of mortgage, there are also different deals you can access in a  joint mortgage, such as fixed rate or variable rate mortgages.

How do Mates Mortgages Work?

While we often assume joint mortgages are intended for married couples, the reality is that you can get a joint mortgage with just about anyone. All you need to do is decide how much everyone will contribute to housing costs, how you’ll divide the equity of the home, and what will happen if someone chooses to back out of the deal.

You’ll also need to find a mortgage provider who offers joint mortgages (which is usually pretty straightforward). A few things to keep in mind include:

• Banks and lenders can differ in the way they calculate your mortgage affordability. Additionally, they may have different rules in place for how many people can be involved in a joint mortgage at any given time.
• No matter the percentage of the equity a person holds in a joint mortgage (with tenants in common), everyone on the agreement will be responsible for mortgage payments.
• Joint mortgages with friends can incur some additional legal costs and complexities, particularly if you need to figure out what happens if someone leaves your mortgage, or decides to purchase a different house.

Are Mates Mortgages Common in 2026?

A mates mortgage might seem like a new concept, but friends have been buying homes together for decades. The reason these arrangements appear more common now, is that housing costs are becoming increasingly difficult to manage.

With the first time buyer deposit rising to around £62,500 in 2023, mates mortgages are becoming a lot more common. According to the Mortgage Advice Bureau, only around 10% of prospective buyers believe they can afford to buy a home alone.

This is clearly an issue at a time when 35% of the UK’s population consists of single people.

Struggling with the high cost of rent, many “friends” are seeing the benefits of joining forces on a mortgage purchase. In fact, 7% of all prospective homebuyers now plan to get a mortgage with a friend. This number is even higher (23%) for people between the ages of 18 and 24.

That makes sense when you consider that a lot of single people are already used to things like shared accommodation (in university), and sharing rent with friends. If you and your friends are happy to share the cost of paying someone else’s mortgage (through renting), it makes a lot of sense to consider chipping in on a mortgage of your own.

The Pros and Cons of a Mates Mortgage

There’s a good chance that the current state of the economy, and the cost of housing will continue to push more home buyers of all ages into the “mates mortgage” landscape in the years ahead.Of course, this doesn’t mean that a mates mortgage will be the right option for every single person.

The BENEFITS of Buying a House with a Friend

There are potentially numerous benefits to buying a house with a friend, such as:

TOP TIPS FOR SUCCESS WITH A MATES MORTGAGE

For some single people, a mates mortgage could be a great idea, but to protect yourself, and your finances, it’s important to have a plan in place. Here are our top tips for success, based on the research we’ve done into the mates mortgages space:

• Rent together first: Before you invest in something as significant as a joint mortgage, it’s worth making sure you can live amicably together. We’d recommend renting with your friends for a while first, to reduce the risk of potential problems.
• Have a formal agreement in place: Ensure you work with a solicitor to have a formal agreement created that ensures you all know what you’re responsible for, how the property can be sold, and how much notice needs to be given if someone decides to leave.
• Budget carefully: Evaluate everyone’s financial situation carefully, and make sure you’re not applying for a mortgage that’s more than you can reasonably afford. Consider what might happen if someone in your group suddenly loses access to their income. Plus, make sure you all have a decent credit rating in place.
• Speak to a mortgage adviser: A mortgage adviser should be able to give you some useful guidance on how to manage the elements of your mates mortgage as safely as possible. They can also guide you through the process of buying as “tenants in common” which is often safer than getting a mortgage as joint tenants.
• Open a joint bank account: Consider opening a joint bank account with your friends that you use for bills, household costs, and mortgage payments. This will ensure you don’t lose track of who is contributing what to your home.
• Create a will: If you buy with friends on a “tenants in common” basis, make sure you all have a will in place, to dictate what will happen to your share in the property if you’re no longer around.