Could Flatmate mortgages stimulate the market?

April 18, 2010 by Brendan O'Neill

News

Getting on the first rung of the property ladder is daunting, and many first time buyers find they might have to scale back their expectations when looking for a new home.

Those finding it difficult to finance their first purchase would benefit from a ‘flatmate mortgage’, according to house sharing website easyroommate.co.uk.

In a campaign aimed to encourage the Government to make such loans available, the report claims that by taking into account the income from a flatmate, a first time buyer could have an extra £11,000 with which to invest in a property.

This could provide the housing market with a much needed boost and a lifeline to potential homeowners. Figures published by the Council of Mortgage Lenders show that 50% fewer mortgages were offered to first time buyers in February compared to the same period in 2007.

Despite this, the market still exists for first time buyers and shows some encouraging signs. The same report reveals that the total number of loans made for property purchases increased by 12% in January, 12,600 of which went to those purchasing their first home. These figures would likely increase if such flatmate mortgages were widely available.

If you’re looking to take out a mortgage there are lots of products available on the market, and an array of legal aspects to be aware of. It is always a good idea to speak to a mortgage advisor who will be able to offer guidance and point you towards the best offers that are available to you.