The
cost of the average UK home has now reached almost £180,000
- nearly six times the UK average income.
It has become increasingly difficult for first-time
buyers to buy a property - even with two incomes, many areas
of the country are unaffordable for most first-time buyers.
A
recent survey has shown that around 57% of first-time buyers
would consider buying a property with friends. Over the last
few years more and more high street lenders have started to
offer just such mortgages; group mortgages
that enable up to four people to pool their income and jointly
purchase a property.
What's
A Group Mortgage?
A
group mortgage is a mortgage held by 2-4 people, with the amount
lent being based on the incomes' of all those people.
The
property being purchased is also jointly owned by all the people
on the mortgage - so four friends might buy a house, based on
all four of their incomes, and 25%-owned by each of them.
Group
mortgages have been around for a few years now, but over the
last couple of years have experienced a surge in popularity
as house prices have continued to rise, pricing many first-time
buyers out of the market.
Group mortgages currently represent around 2%-3% of the UK mortgage
market.
One
major high street bank has reported a 50% rise in applications
for group mortgages this year, and with the average house price
in the UK approaching six times the average income this trend
looks set to continue, especially in the south-east and in major
cities.
Why
Choose a Group Mortgage
Group
mortgages offer a solution to first-time buyers who cannot afford
to buy a property singly.
Either they do not have access to a suitable deposit,
or more likely, the mortgage required is too large to be based
on their salary alone.
Group
mortgages offer a number of advantages:
Get a foot on the property ladder even if you can't afford
a property on your own
Start benefiting from rises in property prices
Escape the rent trap
Get a place to call your own
The
problem with renting is that you aren't left with anything when
you move out. It's money down the drain.
As
the monthly payments for a rental property are sometimes more
than those for a mortgage, it can be very difficult to save
up for a deposit when you are renting. Group mortgages can provide
a solution to these problems.
How
Do Group Mortgages Work?
Taking
out a group mortgage is very similar to taking out a regular
mortgage, except there is an extra stage required to agree the
terms of the joint ownership.
If
you are thinking of doing this, here's how it works:
Decide who will be in the group (maximum 4 people)
Jointly select a property and agree a price with the vendor
Find a lender who offers group mortgages - a broker can
be helpful
Apply for a group mortgage
Draw up a "Declaration of Trust" document
Move in!
Each
person whose income is being used to fund the mortgage will
be required to provide proof of earnings and undergo a credit
check, just like a regular mortgage.
If
you want to get your best mortgage
quote quickly and easily we offer a great new
service. We can put you in contact with a professional mortgage
adviser. It's free and completely confidential. Simply fill
out the form below
'Fill
out the form Below and we will INSTANTLY send
you a FREE REPORT to potentially save £1000
off the cost of YOUR annual mortgage payment!'
TIME
LIMITED OFFER
Are you looking
for a new mortgage? Well you can spend time reading
this website and work it all out for yourself.
But to behonest
the quickest and best thing you can do is to get
a quote from an independent, regulated mortgage
adviser (NOT someone who is connected to a bank
or building society).
We can put you
in contact with a recommended
professional right now. Simply complete the quick
enquiry form.
Free
Report
In fact we are
so convinced that this is the best thing
for you that we will give you a special
report "The 7 Most Important Things you need to know TODAY before you choose your mortgage".
Your report is short, direct and cuts right to the chase.
So you won't have to waste time and effort reading any
waffle.
IMPORTANT NOTE:
The report will only be made available free of charge
for a strictly limited time. After that, we are
considering selling it as a package for £97.00.
So, if you do not request it now, there is no
guarantee it will be available tomorrow… or even
the end of today… for free.
Finally, please
don't worry. We're human too and hate spam.
So your personal info will only be used to get you your
best mortgage quote.
Your quote will be free. And there is no
obligation to proceed with anything at
all.
"Thank
you... the form was very quick. After many long
phone calls to various lenders - where I'd go
over the same details again and again - I was
amazed at how easy you made it. You've saved
me £1000's...."Peter
B, Leeds
