If you are in a house share you could face problems in the future
January 2, 2008
In a recent report industry officials have pointed out that homeowners that are part of a house share mortgage could really suffer in the future, as they may find that they are unable to buy their partner or partners out, and therefore could find that they are stuck with them.
Many recent property purchasers have had to opt for sharing a mortgage with a friend, partner, or family member in order to afford to get onto the property ladder, and this is because of sky high property values that most first time buyers simply cannot afford alone.
Only 44% of those graduating in the last ten years have managed to get onto the property ladder, and out of these nearly three quarters have had to opt for sharing a mortgage with a friend, partner, or family member.
However, experts are concerned that if things turn sour in the relationship or friendship there could be real problems when it comes to one person buying the other out. According to a survey over 70% of consumers in this situation were pretty sure that they would not be able to afford to buy their mortgage partner out.
One industry official from Scottish Widows stated: ‘First-time buyers are increasingly pooling their resources in order to get on to the property ladder. In principle, with a widening gap between earnings and house prices, it is a good idea, as it can help overcome some affordability issues. Two salaries stretch further than one. However, this is not an arrangement that people should rush into. Nobody wants to end up in a situation where they find it extremely difficult to share a home with someone they no longer get on with but can’t afford to do anything about it.’
Related Articles
- House share property owners could struggle in future According to a recent report only 44% of consumers that have graduated in the last ten years have managed to get their foot onto the
- House share property owners could struggle in future According to a recent report only 44% of consumers that have graduated in the last ten years have managed to get their foot onto the
- Alliance and Leicester shares take a tumble Following the recent turmoil in the financial markets, and the period of unrest suffered by Northern Rock, there has been a sharp drop in the
- Possible house price crash causes increased fears A number of officials have expressed concern over the possibility of a house price crash in the UK similar to that seen in the 1990s.
- Many younger consumers too optimistic about financial future A recent report claims that many younger consumers in the UK are too optimistic about their financial futures, fuelling speculation that many are not educated
Comments
Got something to say?