Home really is where the heart is

Research by Charcol.co.uk, the whole of market & fees free mortgage broker, shows that more of their first time buyers (FTBs) have opted to take the plunge and move in together for their first home. Single first time buyers normally account for more of the purchases than joint first-time buyers, partly due to affordability, and partly due to lifestyle choice, but last year, the balance was tipped as loved up house-hunters chose to move in with their nearest and dearest instead.

Carpets and curtains with your cupcake…

Katie Tucker, Technical Manager for Charcol.co.uk comments: “Joint buyers made up 45% of first-time purchases in 2006, but love was in the air in 2007, as this shot up to 50%. Men buying alone fell by a corresponding amount, but interestingly, the amount of women buying their first property alone hardly changed at all. It follows that not only are more women buying, they are doing so jointly, and more men are also taking the decision to settle down with a partner for their first home. Buying together is a very sensible choice in terms of affordability. Not only for splitting the mortgage and the bills, but more cuddling up should save you on the heating!

Cheaper to set up with your sweetheart…

Tucker continues: “Singletons can foresee more set-backs in 2008: Property value has increased by around 18%, in the last two years but incomes have hardly moved at all. Also, in the first half of 2006, interest rates were very low compared to now at 4.5%, buying alone was affordable and not too risky. However, by the end of 2007, Bank rate had increased from 4.5% to 5.75%, making mortgages too expensive for many people to take on alone. The monthly mortgage payments on just £150,000 over 25 years at 4.5% is £830, but at 5.75% they are a not-so-sweet £943; a hefty difference to cope with alone. Thankfully for the confirmed bachelors and bachelorettes, rates are on the way down now, but it will take time.

Prepare for the perfect partnership…

“However, it’s not always hearts and roses: so if you have not moved out before it’s also a good idea to rent together for a year to make sure you get on. For 2008, a deposit is crucial in case properties fall in value, just in case something changes and you struggle to afford your mortgage. And if you need any extra motivation this Valentine’s day: remember, two incomes are better than one!”