Banks and other mortgage lenders should offer more home loan packages to groups of friends to help young people get on the housing ladder, it has been claimed.
According to housing minister GrantShapps, it would be beneficial to create “mates’ mortgage” products to give first-time buyers the chance to purchase a property .
According to new research, 86 per cent of those who do not own a home want to change that fact.
Mr Shapps suggested that lenders should make it easier for groups of friends to buy together, as long as they can afford the repayments .
The minister noted that it could be a good alternative to asking for huge individual deposits and applauded Britannia’s Share to Buy scheme and Lloyds’ First-Time Buyers Pledge.
“I’m delighted that progress has been made since the first summit I called to help first time buyers,” he said.
“But much more still needs to be done. Mates’ mortgages are one option I would like to see explored.”
In other news, Paragon has revealed that students and young singles generate the highest rental income of buy-to-let mortgage customers.
