‘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."

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