Whether it’s you and a friend splitting your mortgage payments and utility bills, mum and dad releasing equity from their own home to provide you with a deposit, sharing the load of a first property purchase is an increasingly popular way to get on the property ladder. There are certainly several things to consider before you take the plunge though, and it may not be suited to everyone’s circumstances or plans for the future.
What are the benefits of buying a home with family or friends?
- You’ll be able to raise your deposit much sooner. This could because you and a friend have each been able to save from your separate salaries. Some providers also enable first-time buyers who have a close family member that owns their home outright to use a small mortgage on the family home to fund a deposit on their own.
- You’ll be able to take advantage of other joint and co-ownership mortgage products, of which there are more and more coming to market all the time. With your higher combined income, you may even find mortgage lenders view two friends favourably.
- If you move in with a friend or family member, and you’re both named on the mortgage, you’ll be able to share the cost of your mortgage payments.
- You’ll also be able to split things like council tax, insurance, utility bills, repair fees and maintenance costs – this could even free up some budget to fully renovate the home if that’s part of your plan.
- And of course, you'll be living with someone whose company you enjoy.