You are here: Home - First Time Buyers -

Case study: Buying with friends

Written by:
Nigel Miller, a 29 year-old training coordinator for the NHS, recently bought a
Case study: Buying with friends

He used broker website,, to find a mortgage they could all take out together. All four parties are individually responsible for paying the mortgage.

“I was renting for 10 years and just pouring money down the drain. Buying with friends was the only way I could get on the ladder in London,” Nigel explains.

“Each person is legally responsible for paying their share of the mortgage and we have a lot of other legally binding arrangements between us. For example, if someone wants to sell their share, they have to offer it to the three remaining people first. If we don’t want to buy it, then they can sell to someone else, but we all have to agree that we are happy for that new person to buy in.”

Some lenders will calculate the amount you can borrow by taking into account three people’s incomes, but others will only agree to lend multiples of the two highest incomes.

This is the type of mortgage Nigel had to go for. “Share-to-buy mortgages are quite hard to get and it’s also difficult to find a broker who can organise a mortgage for four people, so I’d recommend visiting; my broker was extremely helpful,” enthuses Nigel.

The only major downside, he says, is organising everyone to get their act together. “It’s a complex process and it can take a long time to gather everyone’s documents.

“It’s worked out really well for me though the mortgage repayments are so low that I pay £150 less every month than I did when I was renting.”

Nigel’s advice: Buy with people you already know you can live with and make sure your arrangements are legally binding and everyone knows exactly what they are getting into.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Jargon Buster

When you take out a mortgage you will probably encounter a raft of jargon, some of which c...
Jargon Buster

Low deposit mortgage deals see dramatic rate cuts

Borrowers with a five or 10 per cent deposit are seeing significant reductions in the cost...
Low deposit mortgage deals see dramatic rate cuts

Six bank statement mistakes that can ruin a mortgage application

Being overdrawn and having a history of payday loans can be red flags to lenders when they...
Six bank statement mistakes that can ruin a mortgage application

Guide to borrowing past retirement age

As an older borrower, you may be concerned that a lender will not offer you a mortgage pas...

Mortgage market biased against homeowners

Buy-to-let property investors are unfairly favoured in the mortgage market, an independent...

Should buy-to-let investors ‘go Dutch’?

The Netherlands is revealed as Europe’s top buy-to-let property hotspot

Private sector tenants in poverty double in decade

The number of private rented sector tenants in poverty has doubled in the last decade from...

Large mortgage broker firm launches with fees of over 1%

An insurance firm has launched a mortgage advice service

Second steppers targeting detached properties

Those living in their first home are increasingly looking to reduce the steps to their lon...

Mortgage Calculators