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– currently building at Chapel Gate, in Ditton, Widnes - 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. A similar section has been added to the developer’s website. 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.”

Those who fancy stepping onto the ladder with a friend will find the perfect pad to share at Chapel Gate, in Ditton, Widnes.

Patsy Aicken, sales director for Redrow Homes (North West), 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.

“Available properties at Chapel Gate include the two-bedroom Avon apartment, which is well suited to busy professionals who want the convenience of a new build. Although designs differ, the property typically offers an open-plan living/dining/ kitchen area, along with two bedrooms – one with en-suite shower room – and the main bathroom. Having two bathrooms means that the Avon is extremely suitable for two friends buying together to get on the property ladder.”

Spacious two-bedroom apartments are available from £111,950.

Chapel Gate, is in an enviable location, within easy reach of Widnes town centre while Liverpool and Warrington are just 11 and eight miles away respectively. The development is a commuter’s dream offering convenient access to the motorway network, with links to the M62, M56, M57 and M6. Hough Green train station is one-and-a-half miles from the development and offers services to Liverpool and Manchester in less than 30 and 50 minutes respectively.

Patsy says: “We’re finding that many home buyers are drawn to Chapel Gate from Liverpool because of the great value for money it offers compared with the city.

“The great location, close to the A562 Speke Road and a short distance from Hough Green station, means access to the Capital of Culture is close at hand – perfect for commuters who want to be close to work yet far enough away to enjoy a more relaxed way of life in a suburban town.”

For more information on Chapel Gate log on to Redrow.co.uk.

For useful advice on buying with a buddy go to: Redrow.co.uk/cms/general/mortgaging_with_a_mate.