Buying With Friends as First-Time Buyers: How It Works

Buying with friends as first-time buyers is becoming an increasingly popular route for people who want to get onto the property ladder sooner. With rising living costs and stricter affordability checks, teaming up with friends can make homeownership more achievable, more flexible, and more affordable.

In this guide, we explain exactly how buying with friends as first-time buyers works — including how lenders assess you, what kind of mortgage you’ll need, how to structure ownership, and the practical steps to take before applying.

If you’re considering buying with one or more friends, we’re here to help you explore your options with confidence.

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Why buying with friends appeals to first-time buyers

More first-time buyers are choosing to buy with friends for simple reasons:

• You can combine incomes to increase borrowing power
• Deposit requirements are easier to meet
• Monthly costs are shared
• You can usually buy a better or more suitable home
• It allows flexibility for those not buying with a partner

Buying with friends as first-time buyers can help bridge the gap between where you are and where you want to be — especially if buying alone feels out of reach.

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How joint mortgages work when buying with friends

Buying with friends usually involves a joint mortgage. Most lenders allow up to four people on one mortgage, although how each income is assessed may vary between lenders.

With a joint mortgage:

• All applicants are named on the mortgage
• All are legally responsible for the repayments
• Everyone appears on the property deeds
• Each person’s credit history is assessed individually
• You share legal ownership of the home

Because you are “jointly and severally liable,” the lender expects every person to cover the full payment if necessary. This is why it’s important to choose buying partners carefully and protect everyone’s interests legally.

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How affordability is assessed for friends buying together

Affordability works differently when buying with friends as first-time buyers compared with buying alone.

Lenders typically:

• Combine all applicants’ incomes
• Review each person’s credit file
• Look at spending and bank statements
• Assess debts, loans, and financial commitments
• Evaluate job stability and income consistency

This means even if one person earns less, the group’s combined affordability is what matters most.

If you want to understand how your finances are viewed, see our guide on what lenders look for on bank statements.

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Ownership options when buying with friends

Choosing the right ownership structure is essential for protecting everyone’s interests.

Joint tenants

This gives everyone equal ownership and equal rights. If one owner passes away, their share automatically transfers to the others.
Friends rarely choose this because:

• Shares cannot be unequal
• It can complicate future changes

Tenants in common

This is the most common option when buying with friends as first-time buyers.

It allows:

• Unequal ownership shares
• Different deposit contributions
• Flexibility if someone wants to sell later
• Clear legal protection

A solicitor will usually create a declaration of trust to outline the share each person owns and what happens if someone wants to leave.

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Do friends need the same deposit amount?

No — you can contribute different deposit amounts.

Buying with friends as first-time buyers is flexible because:

• Deposits can vary
• Ownership shares can reflect contributions
• Ongoing mortgage payments can be unequal if agreed
• A declaration of trust records how equity is divided

Lenders care about the total deposit rather than how you split it between you.

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Protecting yourselves when buying with friends

Legal protection is essential, especially when mixing friendship and joint ownership.

Common protections include:

• A declaration of trust
• A cohabitation or co-ownership agreement
• Rules around bills, repairs, and maintenance
• Agreed processes if someone wants to leave
• Clarity around future refinancing or selling

We help with the mortgage side, and your solicitor will handle the legal arrangements.

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Risks to consider before buying with friends

Buying with friends as first-time buyers has many benefits, but it’s important to understand the potential risks.

Typical risks include:

• Someone wanting to move sooner than expected
• Uneven contributions to running costs
• Changes in income or personal circumstances
• One person missing payments
• Disagreements around how the property is managed

Most risks can be significantly reduced through upfront planning and clear agreements.

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What if one friend has bad credit?

You can still buy together — but lender choice may be limited.

Lenders will check:

• Credit history
• Missed payments
• Defaults or CCJs
• Any arrangements like a DMP

Buying with friends as first-time buyers works even with mixed credit profiles, especially if you use specialist lenders. We help groups like this every day.

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What happens if one friend wants to move out?

There are several options:

1. The remaining owners buy their share
2. All owners agree to sell
3. The departing owner keeps their share, if everyone agrees

Your declaration of trust should explain the process clearly, including how valuations are handled and how long the group has to make decisions.

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Steps to take before applying for a joint mortgage

To strengthen your application:

• Review each person’s credit report
• Check bank statements for issues
• Agree on deposit contributions and ownership shares
• Discuss long-term plans and exit strategies
• Gather income documents early
• Avoid new borrowing before applying
• Maintain steady, sensible spending

If you’d like help preparing as a group, we can guide you through every step.

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Final thoughts

Buying with friends as first-time buyers can be an excellent way to get onto the property ladder sooner, reduce financial pressure, and afford a home that suits your lifestyle.

With the right agreements, lender choice, and professional guidance, it can be a smooth and successful path to homeownership.

If you’re thinking about buying with friends and want tailored advice, we’re here to help you explore your best options.