First-time buyers join forces

26 July 2004
Britannia Building Society and graduate network are clubbing together to help city dwelling first-timers share mortgage costs.

The new scheme enables twenty-somethings, unable to go it alone, to join forces and share the mortgage on a property.

'Share to Buy', allows up to four young professionals to purchase a property together at a multiple of three times each of their salaries.

For example, four young professionals, each on salaries of £24,000 p.a., could afford a property worth up to £320,000. Given a ten per cent deposit between them, this would currently give each individual monthly repayments of £435.72 per month, on their £72,000 share of the mortgage.

The managing director of Britannia, Tim Franklin, comments: "With many graduates and young professionals having built up sizeable debts as students, we are seeing a real influx of twenty-somethings to the big cities, drawn by the prospect of a sizeable salary."

However, as many are "struggling to purchase a home at big city prices", and with "many young people feeling that rent to a landlord is money down the drain", Mr Franklin added that, "it is becoming more acceptable for friends to club together in order to purchase a property."

With the average London property costing £251,368 an individual would need to earn a salary of £68,228 - twice as much as the average salary in London of just £33,118.

As a result, Londoners are relocating further away from friends and are commuting longer distances.

The managing director of graduate network, Stephen Dwelley, added: "Overall, we aim to offer an acceptable way in which young professionals can get a stake in the property market at an earlier age than is currently possible."

Britannia also provides free comprehensive legal arrangements as part of the whole package.