New Mortgage Guides

Other Mortgage Guides

Mortgage Types

Mortgage Tools

Financial Services > Mortgages > Group Mortgages > Getting a mortgage with a friend
Bookmark and Share

Getting a mortgage with a friend

Mates Mortgage, Friends Mortgage, Group Mortgage, call them what you will, getting a mortgage with a friend or friends is set to become more and more popular, particularly in areas with high house prices.

First-time buyers are increasingly having to turn to their friends in order to get on the first step of the property ladder, particularly in London and other areas with low levels of affordable housing.

Why would I get a mortgage with friends?

Research from HSBC revealed that group mortgages may soar in popularity. This is because the vast majority of first-time buyers believe that the affordability of housing is a major problem, and well over half would be prepared to purchase a property with their friend or friends.

How many people can go in on a group mortgage of this type?

Buying a property with up to three friends is considered relatively normal, and for some people it may be the only option.

Why not just wait for my salary to rise?

First-time buyers remain determined to get on the property ladder, despite problems with affordability. Reasons for this could include the desire to stop spending money on rent, buying property as an investment for the future, and the desire to get on the property ladder before house prices rise even further.

But surely a house will be affordable at some stage?

This is not a certainty. Although many first-time buyers make it onto the first-step of the property ladder, the average house price in England and Wales now exceeds £200,000. This is over six times the average salary… just one of the reasons why applications for group mortgages are increasing rapidly.

Who can I get a group mortgage with?

It is usual to get a group mortgage with friends or family members. However, you should be sure that living in close proximity with the people you choose to move in with is not going to cause conflict or arguments. Unlike a shorthold tenancy agreement, a mortgage generally has an expiry period of much longer than six months or a year.

What should I look for in a co-owner?

It is worthwhile bearing in mind that you could live with the people you buy property with for many years. You should know them well, and trust them as much as possible.

What happens if my co-owners suddenly become unemployed and cannot meet mortgage repayments?

These, and numerous other potential problems, are some of the pitfalls of group home ownership. However, if a legal agreement is drawn up before the purchase of the house is completed and the mortgage is approved, then problems can be averted. A legal agreement of this type should detail all potential problems such as one person wanting to move out, etc.

How should I go about getting a group mortgage?

Please use our Mortgage Enquiry Form and one of our experts will contact you for further assistance. Alternatively, you can give us a call on .

Receive Mortgage Advice from a Regulated Advisor

Mortgage advice

There is no better time to be seeking suitable mortgage advice from a Regulated mortgage advisor

Submit your details today for an obligation-free chat and a regulated mortgage advisor will call you back to help you find the mortgage that best fits your needs.

We will only provide your details to one regulated advisor.

Your mortgage

 * Help
 * Help
 * Help
 Help
 Help
 *

About you

 *
 *
 *
 *
 *
 *
 *

Questions marked with * are required

Please be aware that the advisor who contacts you will be a third party advisor who has no connection with us. There is no charge to you for using this service. We are paid by charging your assigned advisor a fee for this service. Any advice or assistance given to you by a third party advisor does not represent our advice or assistance and is not checked or endorsed by us. It is your decision whether or not you act on any advice or assistance you are given.

By clicking “Proceed” you confirm that:

  • You accept our Terms of use and
  • You would like to be contacted by a regulated third party advisor to discuss your needs.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Financial Services Net Limited and other trusted 3rd parties would like to keep you advised via e-mail or telephone of products, services and other exciting offers we think may interest you. Please untick this box if you do not consent to us contacting you for further information.

Bookmark and Share
       
Mortgage lenders
   

Browse mortgage lender offersMortgage Rates by Lender

  • Browse current mortgage offers from over 90 lenders.

Worried about mortgage repayments?Worried about Mortgage Repayments?

  • Join our petition to Government to bail out burdened individuals, not just banks.

Free mortgage quoteFree Mortgage Quote

Mortgages in Scotland Mortgages in Scotland

Equity releaseEquity Release

  • Unlock equity in your home.

Switching mortgagesSwitching Mortgages

Home reversion plansHome Reversion Plans

Commercial mortgages Commercial Mortgages

  • Commercial property loans
  • Starting a business?

Arrears & CCJs?

  • Remortgages
  • Sub prime mortgages
  • Arrears, CCJs
  • Self certification
  • Debt consolidation

Protect your mortgageProtect Your Mortgage

  • 3 months free mortgage protection cover

Mortgage Newsletter