Buying a Property with a Partner: Can One Person Take the Mortgage while the Other Joins Ownership?

Buying a house together is a major financial and legal commitment, especially if you are not married or in a civil partnership. If you and your partner are looking to purchase a property, you may be wondering: can one person take out a mortgage while both of you are joint owners of the property?

The short answer is yes, potentially, but there are significant legal, practical and financial issues to consider.

The arrangement isn’t straightforward and carries important risks for both parties. Below you’ll find a breakdown of how such arrangements work in England & Wales, the legal and mortgage-lender implications, what rights each party has, and how to protect both parties’ interests.

How a mortgage and ownership can differ

When a house is purchased, two legal issues arise:

• Who is borrowing the money (the mortgage liability)?
• Who is owning the property (title/deeds/register)?

In many standard cases, if two people buy together they will both be named on the mortgage and on the deeds/title. That means both borrow and both own, typically on a joint mortgage.

However, it is possible to separate the two: one person may be the sole borrower on the mortgage (i.e., the lender looks only at one person’s income, credit history, etc.) while ownership of the property is held by more than one person (e.g., both you and your partner). This might be achieved in one of several ways:

• The mortgage is taken out in one name only, and both names appear on the title or deeds.
• A “helper”-type arrangement: someone (say a parent) is named on the mortgage to help with affordability, but not on the title. This is sometimes called a Joint Borrower Sole Proprietor (JBSP) mortgage.
• The property is purchased by two people, but only one applies for and is liable for the mortgage.

However, just because it is possible does not mean it is automatic or without risk.

What happens if only one person takes the mortgage, but both own the property?

If only one of you is borrowing (i.e., the mortgage is in one name), while both of you are on the property title, then:

• The lender will treat the borrower (person whose name is on the mortgage) as solely responsible for repaying the loan.
• The person not on the mortgage but who is on the title may still live there, but their legal position is more precarious, particularly if they are not a legal owner or are simply an occupier.
• The non-borrowing owner may find it harder to prove or enforce rights to the property (or any share of equity) if for example the mortgage defaults or the relationship breaks down.

If only one of you is taking out the mortgage, the lender will require the other person as the occupier to sign a disclaimer. This is a very powerful form as once signed and completion has taken place it confirms that should you as the owner default on any terms of their mortgage offer and the lender repose the property, not only can they require that you as the borrower move out but also that your partner does too.

Legal Ownership: Joint Tenants vs Tenants in Common

Whether you are both owners and how your ownership is structured is extremely important. In England & Wales you can notably own a property as either:

• Joint tenants: each owner owns the whole property equally. If one dies, the other automatically gets the whole.
• Tenants in common: each owner owns a defined share (for example 60% / 40%), and on death you can pass on your share by will.

If you are buying with your partner and are not married, many advisers recommend tenants in common, so you can specify what share you own and plan for what happens if you split up or one of you dies.

If you don’t make a specific election or agreement, there is a presumption of equal shares under joint tenancy. That may not reflect the actual contributions made by each person (deposit, mortgage payments, improvements) and can cause issues later.

We recommend drawing up a Declaration of Trust (or ‘deed of trust’) which is a written legal document setting out each person’s share, contributions, what happens on sale or separation. Without this, an owner not named on the mortgage but contributing heavily may struggle to enforce their rights.

What about if one person is the sole borrower but both own?

If you and your partner own the property jointly, but only one of you takes the mortgage, these issues should be addressed:

• Clarify who pays the mortgage: It may be that only the borrower pays, or both contribute.
• Clarify who owns what share of the equity (especially if contributions differ).
• Address what happens if things change: one person wants to leave; one person can’t pay; relationship breaks down; someone dies.
• Consider the risk to the non-borrowing owner: if mortgage repayments are missed, or the lender repossesses, the non-borrowing owner still faces consequences.

From a lender’s viewpoint, if someone is living in the property but not borrowing, the lender may ask for a “non-borrowing occupier” disclaimer.

Legal claims can be complicated. Unless the non-owning party can prove an interest, the property will belong to the legal owner however long the relationship has lasted. So, if someone contributes financially (deposit, mortgage instalments, improvements) but is not on the title, they can face difficulty asserting their rights later.

What are the risks and pitfalls of such an arrangement?

When one person takes the mortgage and both (or more) own, here are the key risks:

Credit risk: If the borrower misses repayments, both the borrower’s credit and sometimes the co-owner’s position may be damaged (especially if the co-owner is connected or has agreed certain terms). Lenders focus on repayments rather than title.

Ownership disputes: If contributions are unequal (deposit, payments, improvements), but ownership is equal and no document records different shares, one person may feel hard done by. Courts may presume equal share unless clear evidence says otherwise.

Relationship breakdown: If you separate, and you are not married, the law provides fewer protections than for married couples. You may find you have fewer rights than you expect.

Death of an owner: If you are joint tenants, the survivor automatically takes the other share - even if you had intended something else. If you are tenants in common, you can leave your share by a will, but you must have set that up.

Mortgage-only borrower issues: If the borrower cannot afford the payments alone at a later date, you may face a forced sale or transfer of equity. Lenders may insist on income test again if you try to remove someone from the mortgage.

What steps should you take to protect yourselves?

If you and your partner plan for one of you to take the mortgage and both of you to be joint owners, it’s important to proceed carefully. Key recommended steps:

1. Seek independent legal advice: Each of you should have separate legal advice so conflicts of interest are avoided.
2. Decide and record the type of ownership: Will you be joint tenants or tenants in common? If the latter, record the share each person owns in writing.
3. Create a Declaration of Trust (or Deed of Trust): This document sets out how the equity is shared, what each contributes, what happens if one wants to sell, or one of you dies.
4. Consider a Cohabitation Agreement: If you are buying as an unmarried couple, a cohabitation agreement can record your wider arrangements (who pays for what, what happens on splitting up).
5. Consider the mortgage liability: Understand that the borrower is legally liable for the full amount of the mortgage, and the lender may still pursue the non-borrowing owner in certain circumstances (especially if they gave any guarantee or signed disclaimers).
6. Understand future changes: Plan for what happens if either of you loses income, wants to move out, separation happens, or you want to add another owner.
7. Check that your contributions align with how ownership is structured: If one of you is paying more towards deposit/mortgage, make sure this is documented in your legal agreement.
8. Review your wills and estate planning: If you own as tenants in common, make sure you have wills to reflect your share. If joint tenants, understand the run-on effect on death.
9. Keep records of financial contributions: Bank statements, receipts for improvements, and evidence of contributions may prove important later if there’s a dispute.
10. Check mortgage options and lender requirements: Some lenders may have specific restrictions or conditions if only one applicant is borrowing, or if non-borrowing occupiers are present.

How can Hegarty help?

If you and your partner are looking to buy a house together, and you are considering that only one of you takes the mortgage but both of you become owners, it is entirely feasible in the UK. However, this route requires much more careful planning than a standard joint mortgage arrangement.

At Hegarty, we advise clients that a mismatch between mortgage liability and ownership, while workable, carries the potential for complex issues later on. It is essential to put in place legal agreements from the outset to protect both parties.

Before proceeding, ensure you both:

• Understand the full implications of being a non-borrowing owner
• Document clearly your intentions regarding ownership shares and contributions
• Check the lender’s requirements
• Obtain independent legal advice to draw up the necessary trust/deed/cohabitation agreement

If you would like to discuss your individual circumstances, contact our residential property team for a tailored consultation. Buying together is a big step; well-structured legal planning makes it much more secure, ensuring you can be confident in your future.