More people opting for joint mortgages

Published: November 23, 2007

More and more young people are only able to get on the property ladder by opting for a joint mortgage, a new report has warned.

Scottish Widows Bank found that 72 per cent of graduate first-time buyers bought their property with partner, family member or friend.

What's more, 69 per cent of people with joint mortgages revealed that they would be unable to buy the other person out.

"These findings tell us that first-time buyers are increasingly pooling their resources in order to get on to the property ladder," explained Amanda Docherty, communications manager for the lender.

"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 withbut can't afford to do anything about it."

A study from the Council of Mortgage Lenders indicated in August that first-time buyers had to spend 19.3 per cent of their salary servicing their mortgage.