Mortgage Seekers Turning to Joint Applications in Growing Numbers

As the UK’s mortgage landscape continues to evolve, a new trend is emerging: mortgage seekers are increasingly turning to joint applications to secure their dream homes. According to recent research from Equifax UK, a significant proportion of borrowers are opting to apply for mortgages with someone other than their partner.

The study, which surveyed 2,000 adults in the UK, found that while credit cards and personal loans are often applied for alone, mortgages are more likely to be applied for with a partner. However, a notable 17% of respondents who had already or planned to take out a mortgage had or would do so with someone other than their partner.

But why are mortgage seekers turning to joint applications? The answer lies in the changing affordability landscape in the UK. With average income to house price ratios widening, consumers are being forced to think outside the box when it comes to credit.

“The affordability landscape in the UK has shifted, and consumers are increasingly thinking outside the box about how they use credit to achieve their goals,” says Craig Tebbutt, Chief Strategy & Innovation Officer at Equifax UK. “Spouses have long been our ‘go-to’ credit partners, particularly for larger loans like a mortgage, but this won’t be an option for everyone. Responsible borrowing alongside wider family and even friends unlocks more options to boost financial inclusion.”

Image: Credit scores play a significant role in mortgage applications

For many, the decision to apply for a mortgage with someone other than their partner is driven by a desire to build credit history. Almost a quarter of respondents cited this as the primary reason for their decision.

Image: Joint credit applications are becoming increasingly popular

But what does this trend mean for the future of mortgage lending? As consumers become more open-minded about who they pair up with for joint credit applications, lenders will need to adapt to meet their changing needs.

Image: Mortgage applications are becoming increasingly complex

As the UK’s mortgage market continues to evolve, one thing is clear: joint credit applications are here to stay. Whether you’re a first-time buyer or a seasoned homeowner, understanding the benefits and risks of joint applications is crucial in today’s mortgage landscape.

By exploring the reasons behind this growing trend and examining the implications for lenders and borrowers alike, we can gain a deeper understanding of the complex and ever-changing world of mortgage lending.

This article was written based on a study by Equifax UK, which found that mortgage seekers are increasingly turning to joint applications to secure their dream homes. The study surveyed 2,000 adults in the UK and found that while credit cards and personal loans are often applied for alone, mortgages are more likely to be applied for with a partner. However, a notable 17% of respondents who had already or planned to take out a mortgage had or would do so with someone other than their partner. The article explores the reasons behind this trend and examines the implications for lenders and borrowers alike.