Join forces to get on the property ladder

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 the unique Buckshaw Village, near Chorley, Lancashire - 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.”

Apartments and two-bedroom houses are understandably proving popular with joint owners.

Those who fancy stepping onto the ladder with a friend will find the perfect pad to share at Worden Court @ Buckshaw Village.

Christine Aitken, sales director for Redrow Homes (Lancashire), 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 Worden Court there is plenty of choice for those looking to take the plunge and share with a friend. This development offers a range of two-bedroom properties, which are particularly suited to those looking to buy a home with a buddy.”

The Argal and Allen apartments are ideal for busy professionals who want the convenience of a new build and don’t want to worry about renovations and too much maintenance.

The Argal, priced from £134,995 offers an open-plan living/dining/ kitchen area, along with two bedrooms – one with en-suite shower room – and the main bathroom.

The two-bedroom Allen priced from £139,995, includes an integral single garage and has a separate kitchen.

Also available is the Eden, a two-storey mid-terrace property, priced from £158,995, which offers a lounge and a separate kitchen/breakfast area on the ground floor and two bedrooms – one with an en-suite – and a main bathroom on the first floor.

Christine adds: “All of these properties have something to offer for two friends buying together to get on the property ladder, from two bathrooms, to avoid the morning queues to the contemporary open plan living space that young people tend to prefer.”

The award-winning Buckshaw Village is a vibrant new community offering employment opportunities, leisure and shopping facilities, alongside a wide choice of new homes.

Redrow is one of the principal developers of this exciting urban village, which is being created on the site of the former Royal Ordnance Factory, at Euxton, near Chorley.

Set in the heart of Lancashire, between the M6 and M61, this is the ideal base for commuters or people who travel a lot.

Worden Court comprises two-bedroom apartments and three and four-bedroom homes within the wider confines of Buckshaw Village. For more information 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.