Ladders HQ

if so what led you to your decision to give up?

When it comes to setting foot on the property ladder, many people are finding it increasingly difficult to overcome initial challenges. The process of acquiring property is certainly intricate enough on its own; but when it comes to high interest rates and rising property prices, some simply lose hope of being able to take that first step – unless, of course, they have someone to take it with.

More and more people are deciding to purchase property in partnership with friends. After all, there are various advantages in doing so; and, according to research conducted by moneyfacts.co.uk, over 60 per cent of UK mortgage lenders will accept an application from up to four individuals. Moreover, with interest rates predicted to rise further and house prices still increasing, it seems to make sense to partner up in buying property – especially if all the parties involved are first-time buyers. But if you’re considering plunging into the property market with friends, there are various facts to weigh into the equation first.

For instance, bringing more people into a single property-buying “unit” means that there’s a greater pool of income to rely on. After all, monthly repayments on a mortgage will be more affordable if they’re spread between various applicants. However, the property itself may still be out of reach: what many don’t take into account is that more people involved in a property-buying transaction results in a lower likelihood of being able to borrow.

Julia Harris, mortgage analyst at Moneyfacts.co.uk explains that 70 per cent of lenders who accept applications from multiple people “still only [take] the highest two salaries into consideration” – meaning that obtaining a big enough mortgage will still likely be a problem. This is primarily because most mortgages are not designed for sharing among friends. While there are mortgages for terms as short as six months, the most competitive fixed or discounted rates are for a minimum term of two years – a time span that a lot of people aren’t willing to commit to unless its with a partner or spouse.

If you’re contemplating partnering with a friend to purchase property, it’s a good idea to get all the details from a mortgage specialist. A broker can go through all the advantages and disadvantages of a joint property purchase, enabling you to ultimately make the best choice for all parties involved.

So, while buying a home with friends might be an affordable alternative to securing a lonely foot on the property ladder, remember that it can also mean less stability on the climb up – so ensure you’re aware of all the potential pitfalls before taking the plunge.

i just don’t like my dead on job…

Many of us who are thinking about buying their first home do have a lot of concerns before they take that step on the property ladder. With house prices plummeting over the last year many have seen thousands of pounds come off the value of their home. Unfortunately house prices are still dropping in some areas due to the mortgage market not yet on the road to recovery. That was a rather gloomy look at the housing market. The good news is that while we can think about the unfortunate people who bought their home in the last two years who have lost out and quite possible are one of the many finding themselves in negative equity, things aren’t going to get much worse and a recovery is on the cards. The Bank of England base rate is at a historic low of only half a percent and the experts have said it won’t drop any further as there wouldn’t be any benefit and it is great for encouraging people to save. Many have decided to take the opportunity to buy a home now as although house prices many drop a little further the base rate will likely rise again sometime this year. Fixed rate mortgages are going to rise and the costs for lenders are becoming more expensive so it looks like the advice would be to arrange a mortgage sooner rather than later. The benefit of locking yourself into a fixed term over a couple of years now means when the base rate rises again you will likely more than save in monthly repayments and for those that like the safety of knowing what their monthly payments will be each and every month can have that piece of mind and avoid uncertainty. To get individual tailored advice for you ask an independent body such as government agencies if you want more advice on mortgage products, you can also check out websites which often have helpful communities. Mortgage brokers in your local community are experts in the market you want to buy and overall mortgage brokers will be able to search around to find you the best deals. So whatever you are looking for a mortgage Falkirk in Scotland or London, England, a mortgage broker can be very beneficial.