Multi-Generation Mortgages

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If you’re struggling to afford a home on your own, you’re not alone. Many families in the UK are feeling the squeeze of high property prices and stagnant wages, making it difficult to get a foot on the property ladder. But what if there was a way to share the cost of a home with your loved ones? That’s where multi-generation mortgages come in.

Specialist lender Market Harborough Building Society (MHBS) recently launched a range of mortgages designed for members of a family or friends to jointly buy a property. This new product is aimed at meeting the growing demand for flexible products that can be tailored to the needs of multiple applicants. Up to four applicants can be accepted on the mortgage, and they don’t need to be related.

You may be wondering if a multi-generation mortgage could be the right solution for you. In this blog post, we’ll explore the benefits and drawbacks of this type of mortgage and offer tips on how families can determine whether it’s the right fit for their needs.

Benefits of Multi-Generation Mortgages

There are several advantages to taking out a multi-generation mortgage. One of the biggest benefits is increased buying power. When multiple people pool their resources, they can afford a more expensive property than they would be able to on their own. This means that families can purchase a larger home or a property in a more desirable location.

Another advantage is the ability to share living expenses. When multiple people are living in the same property, they can split the cost of utilities, maintenance, and other living expenses. This can make homeownership more affordable and reduce financial stress.

Multi-generation mortgages can also provide a way for families to care for each other. For example, adult children may want to buy a home with their elderly parents so that they can provide them with care and companionship. Alternatively, a group of friends may want to pool their resources to buy a property and live together.

Drawbacks of Multi-Generation Mortgages

While there are many advantages to multi-generation mortgages, there are also some drawbacks to consider. One potential drawback is the risk of financial disagreements. When multiple people are jointly responsible for a mortgage, there can be disagreements about how to manage the property and how to split the expenses. This can lead to tension and conflict within the family or group of friends.

Another potential issue is the impact on credit scores. If one person on the mortgage defaults on their payments, it can affect the credit scores of all the other applicants. This means that everyone needs to be responsible for making their payments on time.

Finally, multi-generation mortgages can be complex to arrange. There are different requirements for this type of mortgage, such as the maximum number of applicants and the age limit for borrowers. It’s important to work with a mortgage broker who has experience with multi-generation mortgages and can guide you through the process.

Determining if a Multi-Generation Mortgage is Right for You

So how do you know if a multi-generation mortgage is the right solution for your family? Here are some questions to consider:

  • Do you have a strong relationship with the other applicants? It’s important to have open communication and trust between all parties involved in a multi-generation mortgage.
  • Are you all committed to living together? If you’re buying a property with other people, you need to be committed to living together for the foreseeable future. This means that everyone needs to be on the same page about their living arrangements.
  • Are you all financially stable? Each applicant will need to provide proof of their income and financial situation when applying for a multi-generation mortgage. It’s important to ensure that everyone is financially stable and able to contribute to the mortgage payments.
  • Have you considered the long-term implications? It’s important to think about what will happen if one of the applicants wants to sell their share of the property or if there are changes in the living arrangements. It’s a good idea to have a plan in place for these scenarios.
  • Have you spoken to a mortgage broker? A mortgage broker can help you determine whether a multi-generation mortgage is the right fit for your needs and guide you through the process of applying for the mortgage.


Multi-generation mortgages can be a great solution for families who want to share the cost of a home and care for each other. However, it’s important to consider the advantages and disadvantages of this type of mortgage before making a decision. Working with a mortgage broker who has experience with multi-generation mortgages can help you determine whether this is the right solution for your needs and guide you through the process of applying for the mortgage.

If you’re interested in learning more about multi-generation mortgages or other mortgage products, please get in touch with our team at [Mortgage Broker Company Name]. We would be happy to answer any questions you have and help you find the right mortgage product for your needs.

Picture of Author: Stuart Phillips

Author: Stuart Phillips

Fully CeMap qualified, Directly Authorised by the FCA and with over a decade of experience, Stuart has a wealth of experience in both specialist BTL and residential mortgages.

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