Home » First Time Buyers » ‘Mates mortgages’ urged to help struggling first-time buyers

‘Mates mortgages’ urged to help struggling first-time buyers

For groups of friends without access to the Bank of Mum and Dad, "mates mortgages" could become a mainstream alternative to years of saving, as well as providing a welcome boost to the housing market.

The Minister wants more lenders to offer straightforward mortgage products such as Britannia’s "Share to Buy".

He is also urging lenders to replicate a new "First Time Buyers Pledge" by Lloyd’s. Under the pledge more advice and assistance will be available to prospective homeowners, including a personal action plan for unsuccessful applicants setting out how they could be successful in the future, and a promise that failed applications will not affect the credit rating of first-time buyers.

Shapps said: "More mortgage products are now available, and lenders, housebuilders and councils are cooperating better with each other to offer a range of options to prospective homeowners.

"But much more still needs to be done. ‘Mates mortgages’ are one option I would like to see explored. If there are mates who are perfectly capable of paying monthly mortgage payments but are struggling to fund a deposit on their own, there should be straightforward options to unite with their friends and take the first step onto the housing ladder together."

Have your say on this story using the comment section below