Mortgage with a mate with Redrow

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

Developer Redrow Homes, who is currently building in Colchester, 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.”

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.

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.”

The perfect home for friends to share can be found at The Myle in Colchester, in the shape of the Thurn. This three-storey home uses its extra space to house three bedrooms, one which has its own en-suite shower room, and the family bathroom. This additional bathroom and the ground floor cloakroom/wc will be a great relief for friends co-habiting – who won’t face the arguments and queues of sharing a single bathroom.

The large lounge and master bedroom, with en-suite, are situated on the first floor, while the kitchen/breakfast room, dining room, utility room and cloakroom are all on the ground floor. The three-storey layout of the Thurn means that buyers will be able to enjoy their own space and won’t be living in each others pockets – a problem which can often occur when friends move in together. Prices for a Thurn home start at £275,995.

Situated on Mill Road, the Myle is located in a prime spot for commuters, offering easy access to the A12, which leads directly to the capital by car in around 90 minutes; while rail links from nearby Colchester North station provide trains to Ipswich in less than 20 minutes and to London Liverpool Street in about an hour. The development is also situated on a main bus route.

Colchester has its own museums, a zoo, cinema, theatre, art galleries and many shops, and offers a varied nightlife for all ages.

For more information about ‘Mortgaging with a Mate’ at The Myle, or to see a fully-furnished Thurn show home visit the development, on Mill Road, open daily between 10am and 5.30pm. Alternatively visit Redrow.co.uk.