Most 18-35 year olds would get a mortgage with a friend to access housing ladder
New research has revealed that most people between the ages of 18 and 35 would be prepared to take out a mortgage with a friend.
According to a survey from M&S Bank, around 60% of so-called millennials stated that in order to access the property ladder, they could consider taking out a mortgage as part of a group. This can be compared to the 26% proportion of those aged over 36 who would be prepared to do so.
Of those aged between 18 and 25, the figures showed that the majority (58%) live with a partner and 25% with friends. This kind of arrangement, for 95% of this group, allowed them to share the financial responsibility of a home whilst in good company.
The data also revealed that 20% of millennials do not think that they will ever be able to own their own home, citing raising a deposit as the main hurdle to overcome.
Commenting on the figures was Paul Stokes. The head of products at M&S Bank said: ‘Many young people are trapped in Generation Rent because house prices seem increasingly out of reach. For many, home ownership appears possible only through sacrificing certain aspects of their current lifestyle, be that moving to a different area, moving to a smaller property than they’re renting, or seeing their disposable income take a significant hit,’ said Paul Stokes, head of products at M&S Bank.
‘But our research has shown that millennials are keen for an alternative option and joint home ownership is one of them. From housemate to mortgage-mate is a natural progression which can enable more people to achieve the otherwise unattainable dream of property ownership.
‘Living with and buying a house with friends or family members alleviates the financial pressure of trying to afford home ownership alone, which is unattainable for many. The option of becoming a mortgage-mate is particularly appealing to those already in a housemate arrangement, and our research shows that the concept has become increasingly popular with millennials.’