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Eventually, there will come a time when you are tired of renting and want to make a more secure investment such as buying a home. If, however, you do not have enough money on your own to buy a home and are not in a position to buy with a partner then ‘mates’ mortgages’ can seem to be the answer to your problems.
The idea behind mates’ mortgages is that you and a group of friends put your money together to put a deposit down on a property and then cover the monthly repayments together. You’ll generally have a larger amount to put down as a deposit working this way and so can afford a larger property which you can all live in just like if you were renting, but at the end of the mortgage repayment terms you will have paid off your part-ownership of the home and will have a secure investment on your hands.
If everything works out and you are happy to stay living with your friends for the entire mortgage repayment term then this is a great solution to the struggles associated with first time buying. However, the problem with buying a home with friends rather than a partner or on your own is that your personal circumstances are far more likely to change meaning you want to get out of the house or sell up sooner than the repayment term. If one of you wants to get married or have children, or should you want to go travelling, it can be very restrictive to be tied into a mortgage that none of you can get out of and this can cause far more stress than taking on a home on your own.
Buying on your own also stops there being any squabbles when it comes to making major decisions about the house as you are the owner and will have the final say on everything. If you are not sure you can afford a mortgage on your own take a look at a mortgage calculator on a comparison website to see what options there are out there. If you use an offset mortgage calculator or a buy to let mortgage calculator you may be able to find a deal that is not only affordable but you can imagine being able to stick to for the forseeable future.
It is only really worth buying a home with friends if you try to keep the repayment term down as well as talk in advance with your friends about what the rules are going to be and what will happen should someone want to get out of the mortgage early.

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