Obtaining a mortgage with a friend or friends is set to become more popular in the UK.
First-time buyers are purchasing property in twos simply to gain purchase power, especially in London and general areas with low levels of reasonably priced houses.
Is it a good idea to buy a property with a friend?
HSBC discovered that group mortgages might soar in popularity. It is because getting on the property ladder can be virtually impossible for first time buyers and nearly 50 per cent stated they would be prepared to buy a property with friends or family.
How many people can purchase a property?
Buying a house with up to three friends is relatively standard, and for some potential investors it may be the only option.
Is it worth waiting until I am financially ok?
Many first-time buyers are desperate to get on the property ladder. Simply because they feel renting is wasting money and not building a long-term asset. Many first-time buyers understand how property inflation is going and want to be apart of the long-term benefits.
One day I will have a home?
This is not always the case; the average house price in England and Wales now exceeds £200,000. It is becoming unaffordable, a reason why potential investors are choosing to invest in property as a group.
Who is the best person to have a group mortgage with?
Sometimes it can be a good idea to buy a property with family. You must make sure you can live together as a team and look at the disadvantages to this such as if any domestics were to occur. Before buying a property you must make sure you have trust in your partner and that you both will make equal payments towards the mortgage deal.
What if my partner can not keep up with repayments?
This is another disadvantage when people choose to take on a group mortgage deal. If you have a legal agreement on paper confirming certain terms and conditions, then problems can be diverse. When a legal agreement is created, all aspects are under the terms and conditions of the policy such as if one person wanting to move out or cannot make repayments it would not affect the opposite partner.
Overall if a first-time buyer is having financial difficulties and feel they can make a good return dealing with property, a group mortgage would be highly suited for people in this position.
If you would like more information on UK Mortgages or to get a top Mortgage Quote, please visit our website: www.mortgagequotes.me.uk
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