In most cases, no. A mortgage is not something that can simply be transferred from one set of borrowers to another without the lender’s consent. The lender would need to approve any change of borrower and would normally reassess affordability and credit, because the loan is being underwritten against specific people.
What usually happens instead
Plans like this are typically done through a formal change in ownership and a new or amended mortgage. In practice, that often means either buying the property from your parents and arranging your own mortgage, or completing a transfer of equity at the same time as remortgaging so that you become responsible for the borrowing.
Who will live in the property matters most
The key factor is whether either of your parents will remain living in the property once you and your partner, and your sister and her partner, take over. Lenders are cautious where an occupier lives in the property but is not a borrower, because it can complicate the lender’s ability to obtain vacant possession if it ever had to repossess.
If a parent will remain living there
If either of your parents intends to stay in the property, the options can become limited and lender appetite can reduce. Some lenders will require occupier documentation, and in many cases they will still be uncomfortable with the arrangement depending on the divorce settlement and the occupier’s rights. This does not always mean it is impossible, but it does mean the structure and legal documentation need to be very clear from the outset.
If neither parent will live there
If your parents will move out and you intend to refurbish and sell in a few years, the route can be more straightforward, but it still depends on how you plan to run the property during that period. If it will be empty while works are carried out, you need to be mindful that some lenders and insurers take a cautious view on vacant properties for extended periods. If you intend to let it out, you would normally be looking at buy-to-let criteria, where lenders focus heavily on whether the expected rent meets their rental affordability stress test rather than relying purely on personal income.
Four of you taking it on can work, but it narrows choices
It is possible to arrange borrowing with four applicants, but it can reduce lender choice and it will increase the importance of clean underwriting. Each person’s income, credit history and existing commitments will be assessed, and the lender will also look closely at how the property will be used and whether any of you already own property elsewhere.
The profit split needs to be documented properly
Because there are multiple parties involved, it is important not to rely on informal agreements about who gets what when the property is sold. A solicitor can document ownership shares, contributions to costs, and how profits and losses will be divided, which helps protect both you and your parents and reduces the scope for disputes later.
Costs people often miss
Even when the headline numbers look attractive, transaction costs can change the outcome. Early repayment charges on your parents’ existing mortgage, stamp duty implications depending on whether any of you already own property, and potential tax considerations can all affect whether the plan delivers what you expect.
What to do next
The idea can work, but it needs to be structured in a way a lender will accept and a solicitor can protect. The sensible next step is to confirm who will live in the property, how ownership will be transferred, and whether the property will be vacant, occupied, or let during the refurbishment period. A broker can then quickly sense-check which lenders are realistic for your exact set-up before you commit to legal costs, and a solicitor can formalise the agreement so everyone’s position is clear.
