“Buddy up” for a mortgage in Birmingham

Recent news about the housing market tends to make desperate reading for would-be first time buyers who are turning to more creative means to make it onto the property ladder.

Developer Redrow Homes, currently building contemporary apartments at Jupiter in Birmingham city centre, is among those reporting an increasing trend to ‘buy with a buddy’ 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.”

By “buddying up” in Birmingham buyers will be able to afford to live in a city where they can work, relax and play. As well as owning a stylish pad, which is sure to be a hit amongst friends, Jupiter buyers with a penchant for shopping and fashion will benefit from the easy access to the Bullring which offers more than 140 shops including Selfridges, Molton Brown, Miss Sixty and Debenhams.

Also a short walk away is The Mailbox, a designer-clad shoppers’ paradise, with Harvey Nichols, Emporio Armani, Hugo Boss, DKNY, Bang & Olufsen and Toni & Guy on offer. For entertainment, dining and nights out Jupiter is located close to Broad Street and Brindley Place and is also close to the attractions of the National Indoor Arena, Symphony Hall and Centenary Square.

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 some 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.

Very recently the Office of National Statistics announced that young people are staying at home longer because they can’t afford to fly the nest. In 2006, 58% of men and 39% of women aged 20-24 in England lived with their parents, significantly higher than in 1991.

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.”

At Jupiter buyers will find a selection of two-bedroom apartments which are the perfect place to set up home with a friend. Along with the main bathroom, the master bedroom also has an en-suite, which means two people sharing can each have a bathroom of their own. The apartments also come with an open plan kitchen/living area, storage space and in some cases built-in wardrobes in the master bedroom. Many of the two-bedroom apartments also have a balcony from the living area – providing the perfect place to entertain friends. Prices start at £164,950.

Jupiter has recently added a fully interactive model to its marketing suite, which allows visitors to visualise the properties and life at Jupiter via a touch-screen computer linked to a life-like model of the apartments and a big screen – so finding the perfect apartment couldn’t be easier.

If you like the sound of life in the heart of Birmingham with Redrow at Jupiter, visit the marketing suite on Canal Square, or click on to Redrow.co.uk/developments/view/26.

For information and advice about buying with friends go to: Redrow.co.uk/cms/general/mortgaging_with_a_mate.