First Time Buyers purchasing homes with friends

23/02/2007

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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