When a housing problem shared is a problem halved

As would-be first time buyers turn to more creative means to make it onto the property ladder, house builder Redrow is throwing them a lifeline with its ‘Mortgaging with a Mate’ scheme. The award-winning developer Redrow Homes – currently building at Oakley Vale, Corby, Northamptonshire, is among those reporting an increasing trend to buy with a friend simply as a means of getting onto that first rung.

Simon Bennett, Redrow’s marketing director, says: “We are seeing more and more examples of friends and siblings joining forces to enable them to buy their first home. Just as young people have been used to renting shared properties for a long time, now it seems they’re willing to buy together too.

“It makes sense on a lot of fronts – each party has less of a deposit to find, the responsibility of the mortgage and household bills is shared each month, and each owner is investing in their future and hopefully building up some equity, rather than paying out rent.”

Redrow is taking steps to make it as easy as possible for people to buy jointly by making sure the financial advisors and solicitors it works with are all armed with the very latest information to help this type of buyer. It has even agreed special rates for Redrow home buyers with one of Britain’s leading lenders, the Halifax, who will accept mortgage applications from up to four applicants on the same property.

A new information leaflet, ‘Mortgaging with a mate’ is available at Redrow developments and provides useful information and advice on buying a home with friends. Special events and workshops have also been held around the country to promote the concept of buying with a buddy and more of these will follow.

Buying a brand new home can be a good option for joint purchasers as, with little or no maintenance to worry about, there’s less likely to be arguments over any jobs that need doing. Also with many new homes - even apartments - including at least one en-suite as well as the main bathroom, a new home can offer more privacy for friends who are sharing.

It’s little wonder that mortgaging with a mate is getting more popular when you consider some of the latest headlines. According to the Halifax annual first time buyers survey earlier this year, the average house is unaffordable for first time buyers in more than nine out of ten towns; and the number of first time buyers has fallen to its lowest annual total since 1980.

And the Halifax Key Worker Housing Review has revealed that the average house price is unaffordable for all five key worker occupations (nurses, teachers, police officers, fire fighters and paramedics) in 70% of towns across Great Britain.

“Faced with statistics like these, a lot of people are having to find different ways to get onto the property ladder. Many turn to their parents or another relative for financial assistance or to act as mortgage guarantors, but for those who don’t have this option mortgaging with a mate could be the next best thing,” says Simon Bennett.

He adds: “There are now various mortgage products available from high street lenders allowing up to four people to take out a joint mortgage. The financial advisers we use can recommend an appropriate product to suit the buyers’ circumstances.

“It’s also important that co-owners protect themselves with things like a joint deed and a cohabitation agreement, which will cover issues like each owner’s share of the final property value and what will happen in the event of death or other changes in living arrangements. These are all things that the solicitors we work with regularly can advise upon.”

Whilst apartments, two-bedroom houses and Redrow’s dedicated first time buyer product, Debut, are understandably proving popular with joint owners, Simon points out that the new generation of three-storey new homes also has lots to offer co-habiters.

He explains: “The unconventional layout of many of our three-storey homes means that whole areas of a property can be virtually self-contained. For instance, a bedroom with en-suite on the second floor could provide total privacy for one occupant while his or her co-owner has their own ‘personal space’ on the middle level. We’ve even had a group of friends club together to buy a city centre penthouse in Birmingham so they can enjoy the high life at an affordable price!”

Those who fancy stepping onto the ladder with a friend in will find the perfect pad to share at Redrow at Oakley Vale, a 141-home venture featuring a collection of one, two, three, four and five-bedroom properties.

Redrow is one of several developers on this large scale regeneration development, which is set to comprise almost 3,000 new homes, and already features its own shopping precinct and primary schools as well as large areas of open spaces.

Mary Timlin, sales director for Redrow Homes (South Midlands), says: “We see the struggle that first time buyers face when they want to take a step onto the property ladder and so we aim to help them as much as possible.

“At Oakley Vale we have a wide range of properties to suit all pockets and people from all walks of life, and there is plenty of choice for those looking to take the plunge and share with a friend.

“The three-bedroom Lambourne properties, which have living space arranged over three floors, are ideal for people looking to share, with one bedroom, complete with ensuite, having a whole floor to itself.”

Corby offers a range of amenities such as shops and places to eat and the main shopping areas of Milton Keynes and Northampton are both around half an hour’s drive from the development.

It provides a perfect base for the commuter, with the M1 and M6 within easy reach, and London is around one hour and 35 minutes away by train.

Although convenient for other large towns and cities Corby is surrounded by some exceptional countryside, including Rockingham Forest, giving residents the best of both town and country living.

Corby is currently the subject of a project worth more than a quarter-of-a-billion pounds to regenerate and modernise the town, managed by North Northants Development Company. As well as building new houses, schools and shops, a better transport infrastructure is planned, together with a new arts centre, library and leisure facilities, including a 50 metre swimming pool.

For more information on Redrow at Oakley Vale log on to Redrow.co.uk.