Fri 18 May 2018 View all news articles

Millennials look at joint mortgage options to get on property ladder

Almost six out of 10 millennials would consider taking out a group mortgage, with two or more friends or siblings, as a means of getting onto the housing ladder

In contrast, just 26 per cent of those aged 36 or over would consider taking out a mortgage on this basis.

This survey – of 5,000 people – shows that many in this 18 to 35 age group are pessimistic about their chances of ever being able to afford to buy a property.

The survey, by M&S Bank, found that, not surprisingly, the biggest hurdle to home ownership was saving for a deposit.

The majority of those in this age group (59 per cent) have less than £1,000 saved for a deposit.

M&S Bank’s head of products Paul Stokes says: “For many home ownership appears possible only through sacrificing certain aspects of their current lifestyle. But our research has shown that millennials are keen for alternative options, and joint home ownership is one of them.

“Buying a house with friends or family members alleviates the financial pressure of trying to afford home ownership alone. The option of becoming a ‘mortgage-mate’ may be appealing to those already renting with housemates.”

There are a number of lenders offering mortgages on this basis, included M&S Bank. M&S Bank will offer mortgages for up to four borrowers, provided they are all living in the same property.  In addition it offers a cashback facility and free valuation.

Source: Mortgage Strategy

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