FTBs join together for mortgages

12 September 2006
With house prices rapidly increasing and interest rates on the up, first-time buyers are more likely than ever to get together to afford a mortgage, according to HSBC.

The bank's research shows nine in ten (93 per cent) first-time buyers worried about affordability, and more than half (57 per cent) prepared to club together with friends to make their mortgage payments more reasonable.

Of those surveyed, a quarter (27 per cent) said they wanted to own property as they felt rent payments were a waste, whereas one in five (19 per cent) wanted to get into the market before prices went up any further.

HSBC's head of mortgages, Carina Kemp, said of the study: "More and more people are getting round high property prices by clubbing together with friends or family to buy a home and this is a trend which we expect to continue."

"However, before you take the plunge, it is essential to know and trust your co-owners and to have drawn up a contingency plan for when circumstances change," she added.

By taking out a legal agreement joint owners can protect themselves against someone falling ill or losing their job.

The Royal Institution of Chartered Surveyors recently published a study showing that property affordability was at its worst since the beginning of 1992.

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