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Can’t afford to buy a house…Have you thought about house share?

October 23rd 2014
By: Melanie Hollidge

The OBR, Office for Budget Responsibility has stated that house prices will outstrip incomes for the years to come, making it impossible for many first time buyers to ever own their own house. So it’s hardly surprising that more and more Brits are considering owning a house with friends and family than ever before in the UK.
 
Once it would have unadvisable to move in with a friend or another family member in order to purchase a property, but now would-be-buyers are realising that the advantages outstrip the disadvantages. It’s becoming so common that banks are readily accepting joint applications – Santander have said that three quarters of those first time buyers buying a property in the next two years will be with partner or family member.
 
Buying a property with a friend is still uncommon, and there are on-line schemes where you can find someone else to buy a house with. Buying a property with a friend, will still enable you to access the Governments Help to Buy scheme.
 
The Government Help to Buy scheme is open to first time buyer and home movers, all you will need is a 5% deposit and the government will make up the other 20% deposit, enabling people to access cheaper mortgage deals, and meet mortgage criteria. For the first 5 years people will not need to pay interest on the Help to Buy loan and then in the sixth year they will be asked to pay 1.75% of the loans value, which will then increase annually based on the Retail Price Index plus 1%.
 
If you would like to find out more about how to apply for a joint mortgage or access the Government’s Help to Buy scheme then why not pop into your local branch of Goodfellows for a chat and a coffee or call our team on 0845 372 7070.
 
Your home might be at risk if you do not keep up your mortgage repayments.