The majority of Gen Z Brits would consider getting a mortgage with a friend if it meant they could get their first foot on the property ladder, research by Purplebricks Mortgages reveals. Some 18% said they were ‘very likely’ to get a mortgage with a friend, 29% said they were ‘quite likely’ and 36% said they would consider it.
Only half of Millennials would be willing to do the same, with the number of people prepared to share a mortgage with a friend falling even further the older they get. In general, less than two-fifths of Brits would consider buying a house with a friend.
Data released last year suggests around 0.5% of 16 to 24-year-olds in the UK own their own home, with only one in 10 Brits in the 25 to 34-year-old age group above being owners.
Managing director of PurpleBricks estate agent Mortgages, Jo Pocklington said: “Friends are like family to many of us, so it may make sense to buddy up on a mortgage. There are virtually no legal safeguards in these kinds of arrangements, meaning if one of those friends wants to up and leave, they can take their capital with them. Planning and trust are vital contenders in all of this.
“Sharing a mortgage could be the smart solution for young professionals who feel priced out of the property market, but understand the benefits of owning bricks and mortar. A mortgage lender will assess your situation the same way as any other joint-application - they will look for responsible spending and your ability to maintain monthly payments.
“But owning a home is not like a flat-share - people meet new partners, get new jobs, move abroad and make big life changes. That’s the beauty of being young and free. If you are seriously considering getting a mortgage with a friend, it would be prudent for each of you to ask yourselves where you think you will be in the next five or 10 years.”
According to the latest House Price Index report, the average UK property price for a house is £281,000 with the average Brit earning a pre-tax salary of £35,724.
