Time Buyers purchasing homes with friends
Due to changes in the property market,
rising house prices and interest rates makes first time buyers
harder to purchase a home. People today feel it is a good idea
to buy a home as a group however Moneyfacts think that FTBs will
not be able to borrow as much money as they think they can.
If there are a group of four applying
for a mortgage, nearly 60 mortgage lenders will accept their applications,
however 71 per cent within them 60 lenders would take the highest
persons salary out of the two people within the group in consideration,
leaving the group of mates still in the struggle.
When applying for a mortgage the group of mates would have to
realise if one partner lost his income how would the mortgage
repayments be met. Moneyfacts feel that buying a house as a group
could turn out to be a bad idea.
Ms Harris spoke further: 'Many
people find that just living and renting with a partner for six
months can be difficult, let alone owning and sharing a property
for at least two years with three people that you don’t
know well. It is unlikely that you are going to be able to afford
anything that spacious, so the strains of sharing a bathroom and
potentially a bedroom will be a real test of your relationship
with your friends.'
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