Mates rates for mortgages?
February 13, 2007 by admin
Filed under News, News-Mortgages
Taking out a mortgage with a group of friends is an increasingly attractive option for people looking to get onto the property ladder, according to Moneyfacts.
Moneyfacts is saying that while there are various concerns and pitfalls to ‘mate rate’ mortgages, this is nevertheless a form of lending that banks will now consider.
Over 60 per cent of mortgage lenders, including HSBC and Britannia will consider mortgages for a group of up to four individual salaries.
As interest rates and property prices both rise, more people may begin to consider this option.
Julia Harris, mortgage analyst at moneyfacts.co.uk, called the ‘mate rate’ mortgage a “relatively new option for first-time buyers which has not been explored”.
A spokesman from the Council of Mortgage Lenders told Moneyfacts: “Buying with friends can be a realistic way to get onto the housing ladder, and can be cheaper than renting.”
However, pitfalls include the possibility that one party might lose their income or decide to desert the house once the mortgage is up and running.
