Housing Minister Grant Shapps will today call on lenders to offer ‘mates mortgages’ so younger first time buyers can club together and take their first step on the property ladder.
With new research published today showing 86 per cent of people want to buy a home, Mr Shapps wants lenders to make it easier for friends who would like to buy a house and can afford the repayments, but are locked out the market by the requirement for a large individual deposit.
For groups of friends without access to the Bank of Mum and Dad, mates mortgages could become a mainstream alternative to years of saving, as well as providing a welcome boost to the housing market.
The Minister wants more lenders to offer straightforward mortgage products such as Britannia’s ‘Share to Buy’, so increasing the number of these schemes that facilitate joint ownership will be the top item for discussion when he meets key housing and mortgage industry figures for a second First Time Buyers Summit.
He will also urge lenders to replicate a new ‘First Time Buyers Pledge’ by Lloyd’s. Under the pledge more advice and assistance will be available to prospective homeowners, including a personal action plan for unsuccessful applicants setting out how they could be successful in the future, and a promise that failed applications will not affect the credit rating of first time buyers.
The summit been arranged by Mr Shapps to review progress since he made a rallying call to the housing industry earlier this year to step their efforts and help more prospective first time buyers fulfil their dream of buying their own home.